BANGKOK, Thailand – Prime Minister Anutin Charnvirakul has warned that a private company cannot simply walk away from a contract with the Thai government, following a request by CP Group-linked Asia Era One to terminate its agreement for the high-speed rail project linking Don Mueang, Suvarnabhumi and U-Tapao- Rayong-Pattaya airports.
Asia Era One has reaffirmed its request to exercise its right to terminate the contract and end its operation of the Airport Rail Link on September 30, 2026. The State Railway of Thailand (SRT) has been negotiating with the consortium to resolve the dispute and ensure the rail service continues.
Speaking on August 28, Anutin said he had not yet received all the details of the matter but would meet Chula Sukmanop, secretary-general of the Eastern Economic Corridor Policy Committee, next week to discuss the issue and other matters involving the EEC. Asked about the proposed end of Airport Rail Link operations on September 30, Anutin said the matter would need to be discussed, stressing that contracts with the government could not simply be cancelled.
Anutin said he had generally seen cases in which the government terminated contracts, rather than private companies seeking to walk away from them. He warned that terminating a government contract could carry significant consequences, including possible blacklisting, being classified as a contractor that had abandoned work, and liability for resulting costs.
He highlighted the potential financial consequences if a project had to be put out to tender again after a contract was terminated. If the replacement contract were more expensive, the party responsible for terminating the original agreement could be required to cover the difference under relevant Prime Minister’s Office procurement regulations.
“This is not something that can be done easily,” Anutin said, adding that the government would first discuss the matter with the EEC secretary-general. The Prime Minister also noted that the SRT is a party to the agreement and, as an agency under the Transport Ministry, must follow the Prime Minister’s Office regulations governing public procurement.
The dispute concerns the High-Speed Rail Linking Three Airports project, a major public-private partnership designed to connect Don Mueang, Suvarnabhumi and U-Tapao airports. The project is a key infrastructure component of the Eastern Economic Corridor.
Deputy Transport Minister Siripong Angkasakulkiat said recently that a unilateral termination by the private sector does not automatically take legal effect under the law and the public-private partnership agreement. He said the contract can be ended through mutual agreement, by implication, through a court order or by government action.
Meanwhile, authorities are preparing contingency plans for the Airport Rail Link should Asia Era One stop operating the service after September 30. The SRT Electrified Train Company has been preparing to take over operations, although it would need time to arrange staff and other operational requirements.
The government is therefore facing pressure to resolve the dispute while ensuring that Airport Rail Link passengers continue to receive uninterrupted service and that the state’s interests are protected.
