Phiphat rejects high-speed rail contract change, sticks to original terms
Phiphat scraps plan to amend the high-speed rail contract, rejecting the “pay-as-you-build” model. He will call talks with CP and the EECO to find a joint solution, insisting on a resolution within four months after more than six years of delays.
- Transport Minister Phiphat Ratchakitprakarn has rejected a proposed amendment to the high-speed rail contract that would alter its payment terms.
- The rejected change sought to switch the payment method from a single sum after project completion to a "pay-as-you-build" installment system.
- Phiphat insists on adhering to the original contract, stating the proposed change violates its core principles and the law.
- He plans to convene a meeting with the private concessionaire and state agencies to find a workable solution within the framework of the existing agreement.
Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn said that within the government’s four-month term, plus another four months in a caretaker capacity before the next election, he will push forward pending investment projects under the Transport Ministry to accelerate budget disbursement, create jobs, and stimulate the economy during the current downturn.
A key issue is the delay in public–private partnership projects, particularly the high-speed rail link connecting Don Mueang, Suvarnabhumi, and U-Tapao airports, which has been stalled for more than six years since private sector proposals were first invited.
The project remains stuck in contract renegotiations initiated by the previous government, but still unresolved.
Phiphat said proposals to amend the original contract, changing the payment terms from “state payment after project completion” to a “pay-as-you-build” instalment system similar to ordinary tenders, run contrary to the original agreement. He added that if such an amendment were submitted to the Cabinet, it would not be approved.
“Altering the contract to allow state payments in instalments instead of after completion violates the core principle of the agreement,” Phiphat stressed. “I will not proceed with anything that contradicts the law, as the contract clearly stipulates otherwise.”
Phiphat added that any amendment to the public–private partnership contract must be formally discussed with the concessionaire, Asia Era One Co. (CP Group), along with the State Railway of Thailand (SRT) and the Eastern Economic Corridor Office (EECO). A joint meeting will be convened soon to explore possible solutions, he said, noting that if the project truly cannot move forward, all sides must agree on an appropriate resolution.
However, he stressed that the suspension of the high-speed rail link between Don Mueang, Suvarnabhumi, and U-Tapao airports would not affect overall passenger services. The SRT already operates a double-track rail project reaching Laem Chabang Station, which could be extended to U-Tapao and supplemented with additional train services to meet demand.
Phiphat underlined that his remarks should not be interpreted as opening the door for the concessionaire to withdraw. Instead, he said, the goal is to renegotiate within the framework of the original contract. Cancellation, he warned, would trigger legal consequences and lawsuits the government could not shoulder.
“My objective is to bring the private partner, the SRT, and the EECO together to find a workable solution. I admit that four months may not be enough to get the project fully back on track, but this period will be used to tackle the problems and set out a clear path forward,” Phiphat said.
