Thailand’s airport rail deal faces legal showdown
Thailand’s Transport Ministry has raised concerns over proposed contract changes to a major airport rail project, warning of legal risks if the deal is altered.
Transport Minister Phiphat Ratchakitprakarn, who also chairs the Eastern Economic Corridor (EEC) Policy Committee, has called for a balanced and legally sound resolution to the dispute surrounding the 224 billion baht project linking Don Mueang, Suvarnabhumi, and U-Tapao airports.
The warning came after a high-level meeting yesterday, November 15, involving key stakeholders, including the Eastern Economic Corridor Office, the Office of the Attorney-General (OAG), Asia Era One Co Ltd (the concessionaire), the Transport Ministry, and the State Railway of Thailand. The group reviewed concerns over Asia Era One’s proposal to amend the contract and adopt a “pay-as-you-build” financial support model from the state.
Phiphat clarified that, although the EEC Office does not completely oppose the idea, he personally disagrees with this payment model, viewing it as a significant shift from the agreed terms.
The OAG has not confirmed the legality of the proposed amendment. According to its review, Clause 5 of the existing agreement only permits changes in cases of natural disasters, pandemics, or wars. The lack of legal clarity has prompted Phiphat to escalate the matter to the Cabinet.
He stressed that any modification could expose the state to lawsuits from other bidders who might argue that the original contract terms were altered unfairly after the bidding process.
The EEC Office has been instructed to respond to the OAG’s comments and present a formal recommendation to the EEC Policy Board by the end of November. That recommendation will then be submitted to the Cabinet for a final decision, a deadline that looms large with Parliament expected to dissolve in late January, reported Bangkok Post.
Phiphat insisted the process must involve input from the Ministry of Finance and the Budget Bureau to ensure transparency and accountability.
“The contract must be honoured. Any change could set a dangerous precedent.”
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