Transport minister denies cancellation of high-speed rail contract linking three airports

Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn has dismissed media reports claiming that the government had cancelled its contract with the private sector for the high-speed rail project connecting Don Mueang, Suvarnabhumi and U-Tapao airports, insisting that the agreement remains fully in force.

“I wish to clarify to the public and all concerned parties that the high-speed rail project has not been cancelled as some outlets have suggested,” Phiphat said on Monday. “The Transport Ministry has instructed all stakeholders to proceed strictly within the contractual framework and in full compliance with the recommendations of the Office of the Attorney General.”

He acknowledged that the private concessionaire might be concerned about recent media reports but reaffirmed that the concession remains valid. “What the ministry is doing now is reviewing matters within our authority. Anything we can move forward with, we will expedite. Issues beyond our jurisdiction will be referred to the relevant agencies for due process,” he said.

Phiphat added that he would convene another meeting with the project’s private partners next week to ensure all parties share a common understanding of the project’s direction. “The construction has not yet begun. We want to identify what obstacles are preventing progress so we can find solutions consistent with the contract,” he said.

“I want to emphasise once again that the Transport Ministry has not revoked the contract for the high-speed rail project. Everything remains on track under the existing agreement to ensure maximum benefit for the country and to maintain confidence among all stakeholders,” Phiphat concluded.

The high-speed rail project linking Don Mueang, Suvarnabhumi and U-Tapao airports, a flagship initiative under Thailand’s Eastern Economic Corridor (EEC) development plan, has faced prolonged delays due to financial, legal and administrative challenges.

Although a contract was signed in 2019 between the State Railway of Thailand (SRT) and a private consortium led by CP Group and its partners, the project has yet to begin actual construction as of 2025.

Under a 50-year concession, the CP-led consortium is required to invest more than 200 billion baht, but financial strain and liquidity issues during the Covid-19 pandemic have prompted the private sector to seek a restructuring of the project’s financial framework.

One of the most contentious issues is the consortium’s request for the government to revise the payment model, shifting from a lump-sum payment upon project completion to milestone or instalment payments during construction. This proposal has become a central sticking point in the project’s progress, as it directly affects the financial structure of the public-private partnership (PPP) agreement between the state and the concessionaire.