## Pichit Confident on High-Speed Rail Project, EEC Expansion Possible
Source - Prachachat Business Website
Wednesday, January 08, 2025 13:28
Pichit reiterated the commitment to the high-speed rail project linking 3 airports, expecting smooth progress on contract revisions. He highlighted the project's significance in attracting investment to the Eastern Economic Corridor (EEC) and acknowledged the possibility of expanding the EEC to include Prachinburi province. Regarding the 2026 budget, he anticipates a two-month review before submission to Parliament.
Deputy Prime Minister and Finance Minister Pichit Chunnhawat, who also chairs the EEC Policy Committee, revealed that today's meeting agenda includes a review of the high-speed rail project linking Don Mueang, Suvarnabhumi, and U-Tapao airports.
The committee will examine all facts to determine the best course of action. If no consensus is reached today on the proposed contract revisions, it will be sent to the responsible agency (Ministry of Transport) for legal review. If deemed legally sound, the project will proceed.
When asked about the likelihood of the contract revisions passing, Pichit stated that the initial assessment appears reasonable. He emphasized the project's importance as core infrastructure for the Eastern region, attracting both existing and new investors. The railway will be crucial for investment, and the investment's economic aspects should adhere to the original principles.
Regarding the potential expansion of the EEC to Prachinburi province, Pichit acknowledged local interest due to increased investor presence. Discussions on this matter are ongoing.
Following the Cabinet's approval of the 2026 budget framework, Pichit outlined the next steps, including budget requests from government agencies to the committee and policy directives from the Prime Minister. He expects this process to take approximately two months before the budget is submitted to the House of Representatives.
**"Suriya" Insists on Finalizing Revised Contract for "High-Speed Rail Connecting 3 Airports" Within 3 Months**
*Thansettakij, January 8, 2025 | 7:15 PM*
*Last Updated: January 8, 2025 | 7:25 PM*
Deputy Prime Minister and Minister of Transport, Suriya Jungrungreangkit, expressed confidence in signing a revised contract with private partners for the High-Speed Rail Connecting 3 Airports (Don MueangSuvarnabhumiU-Tapao) within three months. The draft revision will be reviewed by the Attorney General before submission to the Cabinet for approval.
Suriya confirmed that the contract revision remains on schedule under the Public-Private Partnership (PPP) Act. The Eastern Economic Corridor Policy Committee (EECPC), chaired by Deputy Prime Minister and Minister of Finance Pichet Chunhawan, will review the draft before forwarding it to the Cabinet.
### Key Details of the Revised Contract:
1. **State Payment Terms**
- The state will make phased payments to private partners based on project progress, with a budget capped at THB 120 billion.
- Private partners must provide additional guarantees, increasing the total guarantee to THB 160 billion, ensuring the completion and operation of the high-speed rail within five years.
2. **Airport Rail Link (ARL) Fee Payment**
- Private partners must pay the ARL project rights fee of THB 10.67 billion in seven annual installments of equal amounts.
- The first installment is due upon signing the revised contract.
- Bank-issued guarantees matching the ARL fee value, including financial-related expenses borne by the State Railway of Thailand (SRT), are required.
3. **Revenue Sharing Adjustments**
- If future loan interest rates decrease significantly, increasing the project's internal rate of return (IRR) beyond 5.52%, SRT may demand additional revenue sharing as agreed upon.
4. **Work Notification (NTP) Exemption**
- The parties will sign a memorandum to waive incomplete NTP conditions, enabling immediate issuance of NTP upon signing the revised contract.
5. **Force Majeure and Flexibility Clause Updates**
- The contract will include improved terms for force majeure and flexibility, aligning with other public-private partnership projects, to mitigate risks from events severely impacting the projects financial stability.
The government remains committed to completing this significant infrastructure project within the established timeline, ensuring economic growth and efficient transport connectivity in Thailand.
**Suriyan Urges Fast-Track on Thailand-China Railway Phase 2; NESDC to Review Before PM's China Visit to Discuss Strategic Routes**
*Manager Online - January 9, 2025, 5:10 PM*
**Key Points:**
- The Thailand-China High-Speed Rail Phase 2 project is a strategic route connecting Thailand, Laos, and China.
- Plans to expedite dual-track railway Phase 2, Red Line extensions, expressways, and motorways for Cabinet submission in 2025.
- The Land Bridge project is confirmed to proceed.
- OTP discusses investments with DP World for the Land Bridge project.
Deputy Prime Minister and Transport Minister Suriyan Juangroongruangkit revealed plans for the Ministry of Transport in 2025 to accelerate infrastructure projects to enhance efficiency, safety, and cost reduction.
### **Rail Transport Projects:**
1. **Red Line Commuter Railway Extension:**
- Taling Chan - Salaya section, 20.5 km, with a project cost of 15.18 billion baht.
- Currently under review by the Budget Bureau and the National Economic and Social Development Council (NESDC).
- Expected to open in October 2028.
2. **Dual-Track Railway Phase 2:**
- Six routes spanning 1,310.84 km with a total investment of 297.93 billion baht.
- Pending approval from NESDC, with support already received from the Budget Bureau and the Ministry of Finance.
- The six routes include:
- Pak Nam Pho - Den Chai (280.54 km, 81.14 billion baht).
- Chira Junction - Ubon Ratchathani (307.60 km, 44.10 billion baht).
- Hat Yai Junction - Padang Besar (44.50 km, 7.77 billion baht).
- Chumphon - Surat Thani (168.20 km, 30.42 billion baht).
- Surat Thani - Hat Yai Junction - Songkhla (321.00 km, 66.27 billion baht).
- Den Chai - Chiang Mai (189.00 km, 68.22 billion baht).
3. **Procurement of Freight Trains and Spare Parts:**
- 946 container freight wagons with a budget of 2.46 billion baht.
### **Thailand-China High-Speed Rail Phase 2:**
- A key strategic route (Nakhon Ratchasima - Nong Khai, 357.12 km, 341.35 billion baht).
- Currently under review by the Ministry of Finance and NESDC.
- Phase 1 (Bangkok - Nakhon Ratchasima) is already underway, but Phase 2 is essential to link Nong Khai with Laos and China.
- Discussions with NESDC emphasize accelerating approval ahead of the Prime Minister's visit to China for high-level talks.
### **Expressway and Motorway Projects:**
Planned for Cabinet consideration in early 2025:
1. **Motorway M9 (Western Ring Road):** Bang Bua Thong - Bang Pa-In, 35 km, 15.86 billion baht.
2. **Motorway M9 (West-East Connection):** 4.10 billion baht.
3. **New Highway Connecting Motorway M6 to Highway 32:** 5.50 billion baht.
4. **Phuket Expressway (Phase 1, Kathu-Patong Tunnel):** 3.98 km, 16.76 billion baht.
5. **Chalong Rat Expressway Extension (N2 Section):** 11.3 km, 16.96 billion baht.
### **Land Bridge Project:**
- A flagship project to connect the Gulf of Thailand and the Andaman Sea (Chumphon - Ranong).
- DP World, a global logistics giant, is in discussions for investment.
- Draft legislation (SEC Bill) is underway, expected to pass within the current government term.
### **Joint Rail Usage by Private Sector:**
- Drafting of the Rail Transport Management Act to encourage private-sector involvement in railway usage and infrastructure development.
Suriyan affirmed the government's commitment to ensuring these strategic projects drive Thailands economic and transportation advancement.
Thailand to Amend High-Speed Rail Linking 3 Airports Contract
Source - Thai Post
Friday, January 10, 2025 06:45
The Ministry of Finance and the EEC Board will propose amendments to the high-speed rail contract linking 3 airports to the Cabinet by April. This move aims to allow the private sector partner to proceed with the project. The expansion of the EEC area, changes to land use, and the establishment of new special economic zones have also been approved.
On January 9, 2025, Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, chaired the meeting of the Eastern Economic Corridor Policy Committee (EEC PC) No. 1/2025 on January 8, 2025, at the Government House. Mr. Chula Sukmanop, Secretary-General of the Eastern Economic Corridor (EEC) Office, served as the secretary of the meeting. The EEC PC considered and resolved the following important issues:
1. Approved the expansion of the EEC area, changes to land use, and the establishment of new special economic zones:
1.1 Expansion of the Eastern Airport City (EECa) by approximately 714 rai. This includes the Royal Thai Navy's land to accommodate the construction of the second runway. The design has been adjusted to avoid obstacles in the north (Khao Krok Ta Baek) and to comply with aviation safety standards.
1.2 Changes to the objectives and land use plan of the Eastern Economic Corridor of Innovation (EECi). The project's scope has been expanded to include commercial production or continuous use (Product on shelf), in addition to the original prototype development. This means products will go through prototype, testing, and commercial production phases, ready for delivery to consumers in target industries. These include modern automotive with clean and low-pollution production, smart electronics, and bio-agriculture. The land use plan will be adjusted for this new objective, covering approximately 975 rai out of the total 3,454 rai. This is expected to stimulate the local economy, develop related businesses, facilitate technology transfer, and enhance community-business knowledge exchange, ultimately improving the quality of life for local people.
1.3 Establishment of a special economic zone in the Chachoengsao Blue Tech City Industrial Estate. Covering approximately 1,172 rai in Khao Din Subdistrict, Bang Pakong District, Chachoengsao Province, this zone will support the expansion and development of target industries. These include modern automotive, smart electronics, aviation and logistics, digital technology, and human resource development. Investments in the area are expected to reach approximately 156 billion baht. The project will also support domestic entrepreneurs by using parts and equipment from domestic manufacturers for up to 90% of electric vehicles produced within the project area. This will create job opportunities for approximately 20,000 people and stimulate business opportunities for local communities, such as shops, hotels, and dormitories. This initiative aims to stimulate the economy from the community level to the national level.
2. The EEC PC acknowledged the progress made in amending the high-speed rail project contract linking three airports. Further discussions between the EEC Office and the State Railway of Thailand (SRT) confirmed that the contract amendment adheres to the original principles of Public-Private Partnership (PPP) in this project. The SRT and relevant agencies were instructed to proceed according to Section 21 of the Announcement of the Eastern Economic Corridor Policy Committee on Rules, Procedures, Conditions, and Processes for Joint Investment with the Private Sector or for the Private Sector to Invest, B.E. 2560 (2017) and its amendments (EEC Track). This follows discussions with the Council of State and the Office of the Cabinet regarding the procedures and guidelines for submitting the matter to the Cabinet.
Next steps:
* The SRT and the private partner will negotiate the draft amendment contract.
* The contract will be submitted to the Contract Management Committee and the Supervisory Committee.
* The draft amendment will then be submitted to the Office of the Attorney General for review.
* The SRT will submit the reviewed draft to the EEC Office for proposal to the EEC PC and the Cabinet for approval.
* The SRT and the private partner will sign the amended contract approved by the Cabinet.
* The SRT will then issue a notice to the private partner to commence construction.
This process is expected to be completed by April 2025.
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