Charoen Pokphand (CP) Group requested the termination of its contract for the 3-airport high-speed rail project, citing contractual conditions that it says have not been fulfilled.
The three-airport high-speed rail project is designed to link Don Mueang International Airport, Suvarnabhumi International Airport and U-Tapao International Airport as part of the Eastern Economic Corridor (EEC) development programme.
The 220 billion baht project is being developed under a public-private partnership, with Asia Era One, a consortium led by CP Group, selected as the private sector partner.
Although the contract was signed in 2019, the project has faced repeated delays due to issues including land handovers, contract amendments, financing arrangements and the Covid-19 pandemic.
The project returned to the spotlight after CP Group formally requested the contract’s termination on July 6, prompting discussions between the State Railway of Thailand (SRT), the Office of the Eastern Economic Corridor Policy Office (EECPO) and the private consortium.
SRT Governor Anan Phonimdaeng said CP Group cited the absence of an investment promotion certificate from the Board of Investment (BOI) as the main reason for seeking to end the agreement.
The BOI certificate provides investment incentives, including tax benefits, land ownership rights and permission to employ foreign specialists in Thailand.
According to CP Group, the project has been unable to proceed because the certificate has not been issued.
Following the meeting, Anan said all parties had agreed to explore amendments to the contract in an effort to keep the project moving forward. If negotiations are unsuccessful, the contract termination process will continue.
The SRT also noted that ending the agreement would affect operation of the Airport Rail Link, which is included in the existing contract.
If the contract is terminated, the SRT said it plans to negotiate a temporary memorandum of understanding with Asia Era One to continue operating the Airport Rail Link until the state enterprise can assume full management, minimising disruption to passengers.
Anan said the SRT’s preferred outcome remains implementation of the project under the existing agreement, as this would reduce legal procedures and allow construction to begin sooner.
However, he added that if the private partner decides it cannot continue with the project and chooses to exercise its legal rights, the SRT will carefully consider the matter while prioritising the public interest.
The story CP seeks contract termination for 3-airport high-speed rail as seen on Thaiger News.
