Cabinet to decide on revision of 3-airport high-speed rail contract, says Phiphat

Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn said on Friday that the Cabinet will ultimately decide whether to revise the 224-billion-baht high-speed rail project linking Don Mueang, Suvarnabhumi and U-Tapao airports, amid concerns that altering the contract could prompt lawsuits from other private firms that took part in the original bidding.

He made the remarks after chairing a multi-agency meeting on delays affecting the 50-year concession agreement between the State Railway of Thailand (SRT) and Asia Era One. Representatives from the Eastern Economic Corridor Office (EECO), SRT, Asia Era One and the Office of the Attorney General (OAG) also attended.

Phiphat said the private consortium reiterated its request to amend the contract, arguing that the Covid-19 pandemic and global conflicts had materially impacted the project. EECO did not oppose the amendments, saying its priority was for the project to move forward.

However, the Transport Ministry remains wary, especially regarding a proposed shift to a “pay-as-you-build” model, which it believes could violate the principles of the public–private partnership (PPP) framework.

“We do not agree with amending the contract or switching to a pay-as-you-build model. Any amendment risks litigation from the second bidder, as project conditions would be altered. It would also set a precedent for other private firms to request changes whenever their projects face problems,” Phiphat said.

According to the OAG, the original contract explicitly states that neither the Covid-19 pandemic nor international conflicts qualify as force-majeure events or grounds for contract revision.

Phiphat stressed that the Transport Ministry cannot make a unilateral decision. EECO will first compile today’s meeting outcomes for consideration by the Eastern Economic Corridor Policy Committee later this month. The matter will then be forwarded to the Cabinet for a final decision.

“This project involves several ministries, including the Budget Bureau and the Finance Ministry, so a joint decision is required,” he said.

If the Cabinet rejects the amendment request, the ministry will invite the consortium for further discussions to find a way to keep the project on track.

He added that the ministry has offered an additional incentive package for private partners to consider — investing in a proposed high-speed rail extension to Trat province. This, he said, could boost passenger numbers on the 3-airport line and encourage more airlines to use U-Tapao Airport. The consortium acknowledged the proposal but has yet to respond.