Thailand’s long-delayed airport high-speed rail finally back on track
EEC committee says contract under review, expected finalisation by mid-June
Thailand is gearing up to sign a long-awaited contract for its high-speed rail project connecting Don Mueang, Suvarnabhumi, and U-Tapao airports – a transport game-changer that has faced over five years of delays.
The 224 billion baht mega-project, overseen by the State Railway of Thailand (SRT), was severely derailed by the Covid pandemic, which impacted infrastructure investments nationwide. A key factor behind the delay was the tightening of credit lines as banks became increasingly wary of financing large-scale ventures.
Asia Era One, the private consortium led by Charoen Pokphand Group holding a 50-year concession, found itself unable to meet payment deadlines under the original contract. This forced the government and private sector to renegotiate terms to ease financial burdens.
Chula Sukmanop, secretary-general of the Eastern Economic Corridor (EEC) Policy Committee, told Thansettakij the contract is currently under review by the Office of the Attorney General and is expected to be finalised by mid-June.
“The signing is expected by July,” said Chula. “Once approved by the Cabinet, we can begin unlocking the next phase of the project.”
An SRT source revealed that the revised agreement was approved by its board on March 27. Key changes include a revised payment structure and stricter financial guarantees totalling over 160 billion baht.
Under the new terms, the government will now pay based on construction milestones rather than post-operation. Asia Era One will still fund much of the high-speed rail project but must now provide a hefty set of financial guarantees, including 125.93 billion baht for civil works and nearly 15 billion baht for system installations.
Additionally, the consortium will pay a 10.67 billion baht fee for Airport Rail Link (ARL) operation rights in seven equal instalments. A bank guarantee matching this amount is also required.
A new clause allows the SRT to request revenue sharing if interest rates drop and Asia Era One’s internal rate of return exceeds 5.52%, reported The Nation.
Once signed, the SRT will expedite construction access at U-Tapao Airport, overlapping with part of the Thai-Chinese high-speed line. The government says these moves will finally bring the long-stalled project to life.
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