Banks mull granting credit to CP-led consortium for mega rail project: newspaper
Financial institutions are reconsidering granting credit to the Charoen Pokphand-led consortium for construction of a high-speed rail project linking three airports, Thansettakij newspaper reported on Monday, based on information from a news source.
According to the newspaper, the Covid-19 pandemic was a key factor in commercial banks and financial institutions reconsidering granting credit to big projects.
Of the various projects is the high-speed rail linking three airports – Don Mueang, Suvarnabhumi and U-Tapao.
The news source said returns on this project – calculated by the banks and institutions – are likely to be lower than the previously expected THB50.9 billion. The internal rate of returns of the railway project was reportedly only 14.2 per cent.
Thansettakij added that this information had not been confirmed by CP or the State Railways of Thailand as it could not yet contact representatives of the two organisations.
The CP-led consortium had earlier won the bidding and a contract was officially signed on October 24, 2019.
The consortium, first named The Eastern High-Speed Rail Linking Three Airports Co Ltd, later changed its name to Asia Era One.