Lottery Shop Refuses to Vacate, Obstructing Bangkok-Korat High-Speed Rail Construction
Source: Manager Online , Monday, May 13, 2024, 6:37 PM
The construction of the Bangkok-Korat high-speed rail project, specifically the Khok Kruat-Nakhon Ratchasima section (contracts 3-5), has encountered an obstacle. A 35-room commercial building located in front of Nakhon Ratchasima train station needs to be demolished, but one of the tenants refuses to vacate. Despite mediation attempts, the tenant, a government lottery ticket shop, insists on fighting the eviction in court.
A recent update from the Facebook page "High-speed rail construction project, Khok Kruat-Nakhon Ratchasima section, Contract 3-5" shows images of the ongoing demolition of this two-story building on Mukmontri Road in Nakhon Ratchasima Municipality. This project is a collaborative effort between the Thai and Chinese governments to develop a high-speed rail network connecting Bangkok and Nong Khai (phase 1: Bangkok-Nakhon Ratchasima).
The railway's legal team has attempted mediation with the remaining tenant, but they have been unsuccessful. The tenant continues to resist the eviction process.
"Suriya" discusses with representatives of the Kunming city government cooperation to promote transportation, pushing for high-speed rail and the R3A road connecting Thailand - Lao PDR - China.
Online Manager, 18 May 2024, 09:35
Suriya opens the doors to welcome representatives from the Kunming city government, promoting cooperation in transportation between Thailand and Kunming. The aim is to advance the Thai-Chinese high-speed rail and develop the R3A road route, which connects Thailand, Lao PDR, and China.
On May 17, 2024, Mr. Suriya Jungrungruangkit, Deputy Prime Minister and Minister of Transport, met with Mr. Liu Hongjian, Executive Committee member of the Communist Party of Yunnan Province and Secretary of the Communist Party of Kunming Municipality, and his team to discuss the promotion of cooperation in transportation between Thailand and Kunming. The focus was on driving the development of the Thai-China railway network, the Road 3 Asia (R3A) road link, and facilitating border crossings between Thailand and China. Mr. Yatham Promsorn, Permanent Secretary of the Ministry of Transport, and related agencies participated in the discussion at the Ministry of Transport conference room.
Mr. Suriya Juangroongruangkit stated that during the meeting, there was an exchange of opinions to promote cooperation in the implementation of the Thailand-China high-speed rail project and the development of the link between Thailand, Lao PDR, and China. This cooperation is key to enhancing transportation and logistics in the Mekong Subregion. Projects such as the central Pan-Asia Railway network (Kunming - Bohan - Vientiane - Bangkok - Kuala Lumpur - Singapore) and the Singapore-Kunming Railway (SKRL) under the Belt and Road Initiative were discussed.
The high-speed rail project, Phase 1, Bangkok - Nakhon Ratchasima section, is currently under construction and expected to open in 2026. The high-speed rail project, Phase 2, Nakhon Ratchasima - Nong Khai section, is in the process of improving the environmental impact assessment report and is expected to open in 2030. Additionally, the double track railway project, Khon Kaen - Nong Khai section, spanning approximately 167 kilometers with a total of 15 stations, is expected to open in 2027.
For the new bridge construction project across the Mekong River (Nong Khai - Vientiane), the State Railway of Thailand (SRT) has requested budget allocation for the detailed design and EIA report in 2024. The project includes guidelines for both sides to study the possibility of using loans from financial institutions or international cooperation organizations for the construction of a new railway line and bridge across the Mekong River. The connection route is between Vientiane South Station of the Lao PDR and Natha Station of Thailand, mirroring the cooperation model of the 4th Thai-Lao Friendship Bridge project (Chiang Khong - Huai Sai), which was a successful joint venture between Thailand and China.
Mr. Suriya highlighted the importance of supporting the development of the R3A road link, the shortest land route for transporting goods from Thailand to southern China. The R3A route connects Thailand, Lao PDR, and China through key points in all three countries, covering a total distance of approximately 1,800 kilometers. This route is crucial for Thailand's export sector, particularly for agricultural products like fresh fruits (e.g., durian, mangosteen, longan), which primarily use land transportation along the R3A route. Thailand has continuously supported and developed this route since the project's inception.
Additionally, the construction of the Chiang Khong freight transport center around the 4th Thai-Lao Friendship Bridge in Chiang Rai Province aims to support the volume of imports and exports of containerized and packaged goods between Western China and various regions. This development aids the R3A road link along the North-South Economic Corridor under the Greater Mekong Subregion (GMS) cooperation, fostering economic and social benefits in the area and promoting sustainability.
Update! Thai-Chinese High-Speed Train, Phase 1, Nava Nakhon-Ayutthaya section (18/5/2024): This year, we will know the results of Ayutthaya. What will it be like?
Max Puttipong
May 19, 2024
The deadline of May 22, 2024, approaches for Asia Era One Company Limited (a CP subsidiary) to apply for an investment promotion certificate from the Board of Investment (BOI) for the high-speed rail project linking three airports (Don Mueang, Suvarnabhumi, U-Tapao). This crucial step is necessary for the project to proceed, with the Eastern Economic Corridor (EEC) and State Railway of Thailand (SRT) eager for progress.
Asia Era One was awarded the contract for this 224 billion baht project nearly five years ago. However, delays due to the COVID-19 pandemic and requested contract amendments have hindered the project's start.
The BOI Secretary-General, Narit Therdsteerasuk, awaits Asia Era One's decision on the investment promotion application. Meanwhile, the EEC Secretary-General, Chula Sukmanop, has stated that if the application is not submitted, the project will be delayed by approximately two years, requiring a new bidding process or potentially having SRT take over as the investor.
Despite the uncertainties surrounding the investment promotion application, preparatory work such as land expropriation and utility relocation continues along the high-speed rail route. The project's fate now hinges on Asia Era One's actions, with the possibility of contract termination looming if the application is not submitted and a Notice to Proceed (NTP) cannot be issued.
The high-speed rail project, a cornerstone of the EEC's development plan, faces a critical juncture, with potential ramifications for Thailand's infrastructure development and economic growth.
Witness the vibrant morning atmosphere at Hin Lap Station.
Construction on the high-speed railway at Hin Lap is underway, and the morning ambiance is striking. Despite the rain the day before our shoot, the progress is evident.
The route to Hin Lap Station, part of Contract 3-2 awarded to Nawarat Pattanakarn PCL, is a bit challenging. This station will be a key point for the Muak Lek tunnel project, which includes three tunnels for the high-speed rail line.
Today, we were unable to reach the mouth of the main tunnel because the path converges with the tunnel entrance further along. However, we could still see the route's development from the tunnel's mouth towards the smaller Tunnel 5 on the Muak Lek route.
This route will feature a diverse landscape, alternating between ground-level roads, bridges over deep basins, embankments across wide areas, and tunnel entrances. In the distance, we observed the installation of a signaling system.
There's no definitive timeline for when the trains will run through the tunnels, as we await further coordination. We'll continue to monitor and share updates on this exciting project.
'High-Speed Rail Connecting Three Airports' Closes Deal to Amend Contract, Aims to Begin Construction This Year
May 25, 2024, 6:31 AM
KEY POINTS
- The "High-Speed Rail Connecting Three Airports" project, a public-private partnership, has been in negotiations for six years since the bidding started in 2018.
- The State Railway of Thailand (SRT) has presented the latest negotiation results to the board, outlining four conditions to amend the "joint investment contract."
- The government aims to avoid excessive losses within the contract's framework while adjusting the subsidy conditions to "build as you pay." The private sector is urged to secure over 100 billion baht in bank guarantees.
- The requirement for an investment promotion certificate from the BOI has been removed to expedite the construction start once the contract amendment is complete, ensuring construction begins this year.
The High-Speed Rail Project connecting three airports (Don Mueang, Suvarnabhumi, U-Tapao) is a major public-private investment project. With a project value of 200 billion baht, it has taken six years of detailed negotiations since the bidding started in 2018.
The SRT began accepting private sector proposals on November 12, 2018, receiving bids from:
1. BSR Joint Venture (comprising BTS Group Holdings, Sino-Thai Engineering and Construction, and Ratchaburi Electricity Generating Holding)
2. CP Group and Partners (including Charoen Pokphand Holding, Italian-Thai Development, China Railway Construction Corporation, Ch. Karnchang, and Bangkok Expressway and Metro)
The SRT reviewed the proposals for a month and on December 11, 2018, announced that the CP Group and Partners submitted the lowest bid, under the government's subsidy limit of 119 billion baht set by the Cabinet.
Several issues required extensive negotiation, such as extending the concession period from 50 to 99 years, requesting government support for low-interest funding, asking for the state to invest from the first year instead of upon operation, and spreading the payment for managing the Airport Rail Link over years 2-11 instead of within two years.
After more than a year of negotiations, the final meeting was held on September 11, 2019. On October 24, 2019, at Government House, Prime Minister Prayut Chan-o-cha presided over the contract signing for the high-speed rail project. The SRT was instructed to issue a Notice to Proceed (NTP) for construction to be completed within five years per the contract.
The project faced delays due to the COVID-19 pandemic, the Russia-Ukraine war, and financial crises, leading to private sector requests for state compensation and further contract amendments.
In the latest board meeting on May 23, the SRT addressed the project's issues and outlined the necessary contract amendments to ensure continuity. The amendments aim to balance state benefits within the contract limits and ensure fair benefits for the private sector.
The four key points in the amended contract are:
1. **Installment Payments for the Airport Rail Link**: Instead of a lump sum of 10.671 billion baht, the private sector will pay in seven installments, with the state still receiving 10.671 billion baht plus interest and opportunity costs totaling 11.717 billion baht.
2. **Accelerated State Investment of 119.425 Billion Baht**: The state will invest earlier than originally planned, starting from the 18th installment after issuing the NTP, changing the subsidy model to "build as you pay."
3. **Additional Bank Guarantees Over 100 Billion Baht**: To mitigate state risks, the private sector must provide financial guarantees within 270 days of the contract amendment, covering state investment and Airport Rail Link management fees.
4. **Removal of BOI Certificate Requirement**: The condition for the private sector to receive a BOI investment promotion certificate has been removed, allowing the SRT to issue the NTP and begin construction immediately. The SRT is ready to deliver 100% of the project area once the contract is amended, with construction expected to start this year.
High-Speed Train Connecting Three Airports: Will New Contract Amendments Land Officials in Hot Water?
Source: Naew Na Website
Monday, May 27, 2024, 02:10
The high-speed rail project connecting three airports (Don Mueang, Suvarnabhumi, and U-Tapao) has faced significant delays since its contract was signed in 2019. Five years on, construction has yet to progress beyond preliminary stages, with not a single mast erected.
A recent proposal aims to amend the contract, potentially altering significant benefit conditions.
### Project Overview
The high-speed rail project spans 220 kilometers, with an investment exceeding 200 billion baht and a 50-year concession period awarded to Asia Erawan Co., Ltd. (CP Group). On May 23, 2018, Deputy Governor Anan Pho Nimdaeng revealed that the SRT Board had reviewed negotiation guidelines with private stakeholders.
Key principles for the amended contract emphasize that the government should not incur excessive losses or allow private entities undue benefits, ensuring the initial auction retains its integrity.
### Key Contract Amendments
1. Accelerated Government Subsidy
The government proposes to expedite the payment of 117.727 billion baht to the joint venture under a "build-to-pay" model, initiating payments 18 months post-Notice to Proceed (NTP). The current contract mandates project completion within five years, with state payments commencing in the sixth year, spread over ten annual installments. This change aims to alleviate financial strains on private parties caused by the COVID-19 pandemic and the Ukraine-Russia conflict.
2. Waiver of Airport Link Management Fee
Under the existing agreement, private entities must pay 10.671 billion baht to the Royal Thai Armed Forces upon transfer of rights. However, as of October 2021, private parties managing the Airport Link have only deposited 1.067 billion baht, pending contract amendments.
3. Bank Guarantee Requirement
Private contractors must provide an additional bank guarantee for the Airport Rail Link management fee (10.671 billion baht) and the government subsidy (117.727 billion baht). This guarantee must be secured within 270 days of contract amendment.
These proposals will be reviewed by the Board of Directors and the Contract Management Committee before seeking approval from the Office of the Eastern Economic Corridor (EEC) and the Cabinet.
### Implications of Contract Amendments
The project's original PPP Net Cost model, with a 50-year concession (5 years for design and construction, 45 years for project management), included developing commercial areas at Makkasan and Sriracha stations. The auction held in 2018 saw two bids: one from CP Group and another from BSR Joint Venture, with CP Group emerging as the winner for requesting lower subsidies.
Despite winning the bid, construction has stalled. Now, the fairness of amending the contract to reduce private financial burdens is under scrutiny.
### Potential Legal and Ethical Concerns
Amending these conditions might smooth the project's progress but also risks implicating officials in misconduct. Historical precedents include:
- Airport Rail Link: Former SRT Governor Chit Santisan Prapongkong received a six-year prison sentence for contract amendments causing 1.2 billion baht in damages.
- Telecommunications: Former TOT CEO Sutham faced a six-year sentence and a 46.855 billion baht repayment for illicit revenue-sharing amendments.
- ICT Ministry: Former ICT Minister Dr. Liap was sentenced to one year for amending the Eua Shin Corp satellite concession.
- Former Prime Minister Thaksin Shinawatra: Received a five-year sentence for altering telecommunications concession fees.
- Local Governance: The former mayor of Nam Suay, Loei, was sentenced to four years for contract violations with construction contractors.
The authorities' handling of these proposed amendments will be closely watched, requiring transparency to ensure they do not unduly benefit private parties.
Prime Minister Orders EEC Secretary to Accelerate Railway Linking 3 Airports and Develop U-Tapao Airport, Aiming for Industrial Sector Investment
Manager Online
Sunday, June 23, 2024, 12:44 PM
"Srettha" Visits Rayong, Directs EEC Secretary to Expedite Megaproject Connecting 3 Airports with High-Speed Rail and Develop U-Tapao Airport, Aiming to Attract Industrial Sector Investment in EEC Area
Today (June 23, 2024), at 10:30 AM at U-Tapao Airport in Ban Chang District, Rayong Province, Prime Minister Srettha Thavisin discussed commercial area development issues and investment support in the EEC area. He also inspected the construction site of the U-Tapao Airport Development and Eastern Aviation City project. Deputy Prime Minister and Minister of Transport Suriya Jungrungreangkit, Deputy Minister of Transport Monporn Charoensri, Deputy Minister of Finance Julapan Amornvivat, Admiral Adung Phan-Iam, Navy Commander, Rayong Governor Traiphop Wongtrairat, Chonburi Governor Thawatchai Sritong, Pattaya Mayor Poramet Ngampichet, and other relevant officials attended the meeting.
Deputy Government Spokeswoman Radklao Inthawong Suwannakiri revealed that the Prime Minister emphasized the importance of the EEC megaproject, acknowledging delays and urging immediate action to enhance the industrial sector through infrastructure development. The government recognizes the significance of linking three airports, a project that should have begun in 2021 but was delayed by the COVID-19 pandemic. Post-COVID behavioral changes in consumers and tourists have impacted the financial agreements, currently under renegotiation for fairness.
The Prime Minister inquired about the progress of the high-speed rail project linking the three airports, asking whether the negotiations could be completed by the end of the year, stressing the importance of synchronizing the airport and rail developments to avoid future issues.
Radklao further stated that Chula Sukmanop, Secretary-General of the Eastern Economic Corridor Policy Committee (EEC), reported on the progress of the U-Tapao Airport and Eastern Aviation City project. Significant infrastructure work, including electricity and chilled water systems, is 26.42% complete, aircraft refueling systems are 48.41% complete, and water supply and wastewater treatment systems are 98.44% complete. The airport development project, in partnership with the private sector, is expected to start major construction, including the third passenger terminal, concourse, and business center, within 2024, aiming for operational readiness by 2029.
By the end of July, there will be good news about the three airports. We need to have discussions to ensure all projects progress. U-Tapao Airport is a crucial megaproject for Thailand's economic development. Yesterday, I visited Pattaya to review economic stimulus activities such as concerts and festivals planned for the next four boards. Without the airport, it would be much harder. This afternoon, I will inspect various project sites, including the Formula One, a world-class megaproject expected to attract over 100,000 tourists. Proper infrastructure will boost tourist confidence and economic growth, as it extends beyond transportation and logistics, the Prime Minister emphasized.
Regarding investment progress in the EEC area, Radklao reported that over 30 private entities have engaged with EEC, showing interest in the new investment incentives, totaling over 210 billion baht across five promoted industries: medical and health services, service industries, digital and electronics, electric vehicle (EV) industries, and BCG industries. The EEC aims to attract real investments of 100 billion baht annually over the next five years, from 2024 to 2029.
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