Govt hopes to cut cost of Sino-Thai railway project by Bt160 bn
Thailand hopes to reduce the budget for the Sino-Thai medium-speed railway project by Bt160-billion if some parts of the line can be revised into a single track.
Thailand and China agreed to build a dual-track railway with a 1.435-metre gauge carrying trains at speed of up to 180km per hour. The construction of the 873-km project, which will run from Nong Khai to Bangkok and then to Laem Chabang, is expected to cost more than Bt500 billion.
As a result of the informal negotiation in Beijing on the matter last week, Transport Minister Arkhom Termpittayapaisith said Thailand wanted to revise the project in many areas.
The areas to be revised include the investment ratio from 40:60 to 30:70, the loan amount and lending rate, type of tracks and the establishment of the Special Purpose Vehicle (SPV).
Construction of the project was proposed to be divided into three sections to be developed in two phases: Bangkok-Nakhon Ratchasima-Nakhon Ratchasima-Nong Khai and Kaeng Khoi-Map Ta Phut.
It was proposed that the Nakhon Ratchasima-Nong Khai route be developed as a single track, while the other two routes remain dual-track.
“The Chinese authorities have received our proposal for project revisions and will consider it for two weeks before the two country’s 10th meeting is held in Beijing at the end of this month,” Arkhom said.
Under the existing plan, the project’s construction is divided into four sections: Bangkok-Kaeng Khoi, Kaeng Khoi-Nakhon Ratchasima, Nakhon Ratchasima-Nong Khai and Kaeng Khoi-Laem Chabang.
Arkhom has also proposed that more local content is used in the project in a bid to bring the costs down further.
