Quick decision urged for airport rail project

Either find a new private investor or tweak project details

The long-delayed high-speed rail project in the Eastern Economic Corridor (EEC) designed to connect Don Mueang, Suvarnabhumi and U-tapao airports is expected to have significant changes as the government considers seeking a new private investor, says the EEC Office.

The matter is scheduled to be brought before the EEC Board for review soon, chaired by Prime Minister Anutin Charnvirakul.

Chula Sukmanop, secretary-general of the EEC Office, said the board meeting depends on the prime minister's schedule, but he emphasised urgency in moving the project forward.

"The government must decide whether it wants to find a new investment partner or adjust the project's technical specifications to ensure viability," said Mr Chula.

"The original plan faced financial feasibility issues and difficulties in securing bank loans."

The project has been plagued by delays, with construction progressing slowly under Asia Era One, the concessionaire led by CP Group.

The company requested revisions to the contract following disruptions caused by the pandemic and the Russia-Ukraine war.

Mr Chula revealed the contract between Asia Era One and the State Railway of Thailand was terminated due to non-compliance with contract terms.

Although Asia Era One has not formally withdrawn, negotiations are expected to focus on dividing assets.

"The contract termination is like a divorce. Both sides must determine ownership and settle damages," he said, noting this process should not stall development.

Mr Chula reassured investors the government remains committed to completing the rail link, which is considered vital for increasing investment in the EEC.

Industry Minister Varawut Silpa- archa echoed this optimism, predicting Thailand's investment climate will strengthen in the second half of 2026.

He credited government efforts to attract foreign investors to targeted industries within the EEC.

"We expect investment will help Thai GDP grow by more than 3%," Mr Varawut said.

He acknowledged challenges posed by global geopolitical conflicts, including tensions in the Middle East, which have disrupted energy prices and supply chains.

To counter these risks, Mr Varawut emphasised the need for Thailand's industry to transition towards high-technology and sustainable sectors under the bio-, circular and green economic model.