High-speed link hangs on contract rejig

PUBLISHED : 1 Jul 2026 at 05:52

The future of the 224.5-billion-baht high-speed rail project linking Don Mueang, Suvarnabhumi and U-Tapao airports now hinges on whether the government approves amendments to its concession agreement, with the State Railway of Thailand (SRT) warning the contract could otherwise be terminated.

SRT governor Anan Phonimdaeng said the SRT, the Eastern Economic Corridor Office (EECO) and Asia Era One Co, the consortium led by CP Group that won the concession, met last week, during which the private partner said it would be unable to continue with the public-private partnership (PPP) project unless the contract is revised.

He said two options will be submitted to the EEC Policy Committee within the next two months. The first is to proceed with contract amendments previously approved in principle by the EEC board before forwarding the revised agreement, which has already been vetted by the Office of the Attorney General, to the cabinet for final approval.

If the EEC board rejects the amendments, however, the concession agreement would be brought to an end, after which the SRT and the private partner would negotiate the terms of its termination.

Mr Anan said lenders have lost confidence in the project's commercial viability following the Covid-19 pandemic and subsequent economic downturn, which significantly reduced passenger forecasts. As a result, financial institutions have become reluctant to provide funding, making it difficult for the concessionaire to proceed.

The SRT expects to complete its assessment of both options after discussions by the contract management and project supervisory committees in July before submitting a recommendation to the EEC board within about two months.

Mr Anan stressed that, as the project is structured as a PPP, any termination would have to follow contractual procedures agreed by both parties.

Officials are examining which contractual provisions would apply, including failure to issue a notice to proceed (NTP), force majeure or other circumstances, he said.

If the project is discontinued, the SRT would rely on the existing eastern railway line to maintain rail services in the Eastern Economic Corridor.