PATTAYA, Thailand – The Transport Ministry has confirmed it will not revise the contract for the long-delayed high-speed rail project linking Don Mueang, Suvarnabhumi, and U-Tapao airports, while signaling that the private concessionaire could request termination if financial conditions are no longer viable, April 29.
Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn said informal discussions had been held with Asia Era One Co., Ltd. (a CP Group-led consortium) regarding the 224.5-billion-baht project, but the government has firmly rejected any proposal to change the payment structure to a “build-as-you-go” model.
Under the original contract, the state would pay its investment contribution only after construction is completed and operations begin, followed by a 10-year payment period. The private sector had proposed milestone-based payments during construction, but the ministry maintained its stance that the contract terms will remain unchanged.
Phiphat noted that escalating global uncertainty, particularly the conflict in the Middle East, has increased risks in energy prices and construction material costs. However, he stressed that if the private partner finds the project unfeasible, it may formally request contract termination under a Cabinet resolution that allows relief or cancellation of state contracts affected by external crises, without being considered abandonment.
He added that any such request must be submitted through the Eastern Economic Corridor (EEC) Office for formal consideration, and discussions so far remain informal.
The minister also clarified that separate proposals to develop large-scale amusement parks and sports stadiums in the EEC are unrelated to the rail negotiations, though they are intended to boost long-term passenger demand and improve project viability.
Meanwhile, the State Railway of Thailand (SRT) confirmed it will not accept contract amendments and is preparing to hold formal talks with the private consortium and the EEC Office, expected in May, with a goal of reaching a clear conclusion by July.
SRT acting governor Anan Phonimdaeng said the government’s position remains unchanged: no revision to payment terms and no change to the concession payment structure for the Airport Rail Link operating rights, which still require a single full payment.
He added that if the contract is terminated, the state is prepared to take over construction directly. However, this would require restarting detailed design work and re-procurement, potentially delaying the project by an additional 2–3 years, even though environmental approval and land expropriation have already been completed.
SRT estimates that if it resumes the project itself, total construction time would remain around five and a half years, but overall delivery would be significantly delayed due to the restart process.
Officials also noted that revisiting the second-ranked bidder, BTS Group Holdings, would be legally complex as the original bidding process has concluded and related guarantees have expired.
