Prime Minister Visits U-Tapao Airport, Addresses High-Speed Rail Project Concerns
Date: June 23, 2024
On June 23, 2024, Prime Minister Settha Thavisin visited U-Tapao Rayong-Pattaya International Airport to discuss development plans and address concerns about the delayed high-speed rail project linking three major airports.
During his visit, the Prime Minister acknowledged the importance of the project for the Eastern Economic Corridor (EEC) and reassured stakeholders that the government is working towards a resolution. He emphasized the need for collaboration between the public and private sectors to ensure the successful completion of this crucial infrastructure project.
Transport Minister Suriya Jungrungreangkit provided an update on the project, citing challenges such as the COVID-19 pandemic, rising interest rates, and increased construction costs as contributing factors to the delays. He expressed optimism that a solution would be reached by the end of July 2024, with a revised contract expected by the end of the year and construction commencing in early 2025.
The Prime Minister stressed that the airport development and the high-speed rail project are independent but complementary components of the EEC's growth strategy. He assured investors that the airport would continue to operate and develop regardless of the rail project's timeline.
In conclusion, the Prime Minister expressed confidence that the high-speed rail project would be successfully resolved, paving the way for a seamless transportation network and further economic development in the EEC region.
Prime Minister Affirms High-Speed Rail Link Between Three Airports by 2028
Source: Manager Online
Date: Sunday, June 23, 2024, 12:51
Sriracha News Center - The Prime Minister has reviewed the commercial development of U-Tapao Airport in Rayong to support investment in the Eastern Economic Corridor (EEC) and confirmed that the high-speed rail link connecting three airports will be completed by 2028.
Today (June 23), Prime Minister Srettha Thavisin, along with Transport Minister Suriya Juangroongruangkit and Deputy Finance Minister Chulapant Amornvivat, visited the commercial development area of U-Tapao Airport and inspected key projects under government policy, including investment promotion measures in the EEC.
They participated in discussions with representatives from U-Tapao Airport and local government organizations. The discussions primarily focused on economic development projects, investment promotion, and critical logistics systems.
A key topic was the high-speed rail project connecting three airports, which has been delayed from the original completion date of late 2024. The delays are attributed to the COVID-19 pandemic and the Ukraine-Russia war, causing severe labor shortages and incomplete BOI investment promotion measures.
Transport Minister Suriya Juangroongruangkit explained that discussions have been held with the contractor company to find solutions, and a resolution is expected by July.
The Prime Minister emphasized the importance of completing the project by 2028, highlighting its significance for transportation, investment support, and tourism.
Additionally, U-Tapao Airport must expedite the construction of a new runway, a new passenger terminal, cargo areas, an aircraft maintenance center, and a future aviation school.
Postponement of Signing for Section 4-5 Ban Pho-Phra Kaeo
Source - Daily News
Monday, June 24, 2024, 05:02
Waiting for HIA Clarity for Ayutthaya Station, Fearing High-Speed Rail Wont Meet 'World Horticultural Exposition' Deadline
The "Daily News Transport Innovation Team" reports that there have been no recommendations from the National Committee on the Protection of World Cultural Heritage back to the State Railway of Thailand (SRT). This follows the submission of the Heritage Impact Assessment (HIA) report concerning the Ayutthaya Historical Park, a World Heritage Site, in connection with the Ayutthaya high-speed rail station within Phase 1 of the Bangkok-Nakhon Ratchasima high-speed rail project. The report is currently under review by the committee to determine if any additional adjustments are necessary before being presented to the United Nations Educational, Scientific and Cultural Organization (UNESCO) in Paris, France.
As of now, no timeline can be set for the signing of the contract for Section 4-5, spanning Ban Pho-Phra Kaeo, which covers 13.3 kilometers and includes the construction of the Ayutthaya high-speed rail station. The SRT believes it is prudent to await clarity on the HIA to avoid future issues. Consequently, the SRT has postponed the signing of the contract with Boonchai Panich (1979) Co., Ltd., the contractor for Section 4-5, indefinitely. Preliminary negotiations with the private sector have maintained the original price of 10.325 billion baht, and work on other contracts within the project continues.
However, the HIA matter must be resolved by 2024 to avoid delays in the overall construction and opening of the service, which is planned for 2028. The SRT aims to have the project operational before the World Horticultural Exposition 2029 in Nakhon Ratchasima, also known as Korat Expo 2029, scheduled from November 10, 2029, to February 28, 2030, to facilitate travel for the public and tourists.
The Phase 1 construction of the high-speed rail project from Bangkok to Nakhon Ratchasima covers 253 kilometers, involving 14 contracts and a budget of 179 billion baht. Currently, 33.44% of the work is completed, with a delay of 33.06%. Two contracts are 100% complete, ten are under construction, and two are awaiting signing.
Source: Daily News Newspaper, June 25, 2024 (Afternoon Edition)
Source: Thansettakij
Wednesday, June 26, 2024, 05:31
Deal closed, "Build-Operate-Transfer" contract restructured. Sign in Dec. 2024, first pile driven next year.
UTA negotiates contract.
Deal closed to amend high-speed "Build-Operate-Transfer" contract. Construction to start in 2025. Approval from EEC and Cabinet expected in July. New application for promotion certificate opened. UTA negotiates contract conditions to reduce initial construction phase and extend the payout period due to expansions of "Suvarnabhumi-Don Mueang."
The high-speed train project connecting three airports (Don Mueang, Suvarnabhumi, U-Tapao) and the U-Tapao Airport and Eastern Aviation City development project are key infrastructure projects in the Eastern Economic Corridor (EEC). These projects aim to provide seamless passenger transfer and drive economic growth by attracting foreign investors. However, both projects have faced significant delays due to COVID-19 and the Russia-Ukraine war, affecting the financial plans of private concessionaires and leading to negotiations with the government to relax contract conditions to ensure the projects proceed.
Deal closed, construction to begin, PM urges swift action.
The high-speed train project, led by State Railway of Thailand (SRT) and Asia Erawan Co., Ltd. under the CP Group, is crucial. Delays or inability to proceed would undermine the U-Tapao airport development plan. Recent negotiations have almost concluded, pending review by the EEC Policy Committee in July. Key issues include the government accelerating its investment payment (PIC) of 119,425 million baht in the 18th installment from the NTP date, shifting from post-construction completion payments.
After lengthy negotiations, the government agreed to relax terms. Prime Minister Srettha Thavisin recently visited the EEC to push for timely project completion, instructing all related agencies to conclude negotiations by July for construction to proceed.
EEC Policy Committee approves principle amendment of high-speed contract in July.
An EEC Office source revealed to Thansettakij that the EEC Policy Committee will review the amendments negotiated by SRT and private parties for the high-speed train project in July. If approved, it will proceed to the Cabinet for principles agreement aligning with PPP guidelines. This adjustment concerns the private sector's earlier payment request, altering the original post-construction payment term.
"According to the original Cabinet resolution, payments were to commence only after construction completion. This issue needs to be reconsidered under the original resolution before contract amendments proceed, expected to complete by Dec. 2024. This adjustment does not affect current PPP conditions as the project follows PPP steps, only adjusting financial terms."
On June 4, the high-speed train project oversight committee acknowledged the three-party working group's resolution. The plan will be presented to the EEC board and then to the Cabinet for approval before sending the contract amendment to the Attorney General for review. The contract amendment is expected to be signed by Dec. 2024, allowing SRT to hand over the area and issue the NTP by early 2025.
The negotiation framework remains as previously reported, with three main points: 1) ARL rights fee payment of 10,671 million baht in 7 installments; 2) government accelerating 119,425 million baht investment payment in the 18th installment from NTP date; and 3) removing BOI benefits from this contract due to the expired extension period on May 22.
BOI opens new round of promotion certificate applications.
Narut Therdsteerasukdi, BOI Secretary-General, stated that after the last extension expired on May 22, Asia Era One Co., Ltd. executives met to update on contract amendment progress and future plans, confirming their intent to apply for BOI investment promotion benefits.
The private sectors delay in the third extension request was due to ongoing contract amendment processes, crucial for securing funding for the promotion certificate application.
The private sector is preparing documents for a new promotion certificate application, as the old documents are no longer valid. The contract amendment process is expected to be approved by the EEC board in July, allowing the private sector to submit a new application.
High-speed contract amendment to conclude this year, construction to begin early next year.
Chula Sukmanop, EEC Secretary-General, confirmed that the private sector can reapply for BOI benefits legally, starting a new process. EEC is not concerned about this and focuses on progressing the project.
Asked if reapplying for BOI benefits will affect contract amendment signing, Chula confirmed it will not, as BOI conditions are excluded from the contract. If the amendment is approved, NTP can be issued for construction to start by early 2025, aiming to complete the high-speed train project alongside U-Tapao airport's opening.
UTA negotiates to extend payout period.
Puttipong Prasarttong-Osoth, CEO of Bangkok Airways and a partner in the U-Tapao Airport and Eastern Aviation City project, stated that U-Tapao International Aviation Co., Ltd. (UTA) needs to renegotiate contract terms with EEC, initially requesting to extend the investment phases from 4 to 6, reducing the initial passenger service capacity from 15.9 million to 12 million per year, while maintaining the final capacity at 60 million per year. Due to various factors, UTA may need to further reduce the initial construction phase, currently under internal discussion.
UTA will negotiate with EEC to lower the initial phase construction, while maintaining the final capacity, and request to extend or reduce the initial government payout, balancing the impacts faced.
UTA has already designed the terminal, parking apron, and taxiway connection. UTA aims to start construction by late this year or early next year, pending high-speed train project resolution. The Navys second runway construction bid is also prepared. UTA will invest in the third terminal and aviation city, including an exhibition center, concert hall, logistics, and F1 racetrack.
UTA has spent over 3 billion baht on design consultation and increased registered capital from 4,500 million baht to 15,000 million baht, meeting the condition of having 9 billion baht registered capital by NTP.
Source: Thansettakij Newspaper, June 27-29, 2024 Issue.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum