Transport Ministry Updates Cabinet on High-Speed Rail Progress, Expects Completion in 2030, Connecting Thailand and China
Source - Prachachat Business Website
Wednesday, January 29, 2025 10:58
The Ministry of Transport has informed the Cabinet of the progress in developing the high-speed rail system, confirming that by 2030, it will run from Bangkok to Nong Khai, passing through Laos and reaching China.
Government Spokesperson, Mr. Jiraayu Huangsup, revealed that the Ministry of Transport reported to the Cabinet meeting on the progress of the cooperative project between the Thai and Chinese governments to construct a high-speed railway to connect ASEAN and China.
(Image of Jiraayu Huangsup, Government Spokesperson)
The report focused on the progress of the section within Thailand, on the route from Bangkok to Nong Khai. The 31st meeting of the Joint Committee for Railway Cooperation between Thailand and China summarized the key points as follows:
(1) Progress of the Bangkok-Nong Khai High-Speed Rail Development
Phase 1: Bangkok-Nakhon Ratchasima Section: Construction progress stands at 35.75% overall. Two contracts, Khlong Dan-Pang Asok and Sikhio-Kut Chik, have been completed. Ten more contracts are under construction, and two are in the procurement process. The Rail Technology Research and Development Institute (Public Organization) has been established.
Phase 2: Nakhon Ratchasima-Nong Khai Section: Expected to be operational in 2030. The design is complete and is currently under review by the National Environmental Board for the EIA report. The State Railway of Thailand Board has approved the project, which will then be proposed to the Cabinet for consideration.
(2) Nong Khai-Vientiane Railway Connection Progress: Five plans are in place:
2.1) Khon Kaen-Nong Khai Dual Track Railway Project: Currently in the bidding process, expected to be operational in 2027.
2.2) Improvement of the Friendship Bridge: To accommodate freight transport with an axle load of 20 tons/axle, the Department of Highways is studying the bridge's load capacity. The Bureau of Budget has approved funding for this study, aiming to reinforce the bridge.
2.3) Construction of a new Mekong River bridge between Thailand and Laos: Both countries have agreed to share the costs within their respective territories. Detailed design and EIA preparation are underway.
2.4) Development of a freight yard: The remaining area after customs clearance will be leased out. Rental prices will be determined according to regulations. The Committee is considering submitting this to the State Enterprise Policy Office for implementation under the Public-Private Partnership Act of 2019.
2.5) Cross-border travel connection between Thanaleng-Vientiane (Ban Kham Sawat): This is complete and operational.
"The government expects the Bangkok-Nong Khai-Vientiane-China high-speed rail project to be an opportunity for the Northeast and Thailand to connect with the global economy," said Mr. Jiraayu. "It will create opportunities for Thai people to trade and invest in regional markets, including the global market of over 8 billion people.
This project is another step by the government in accelerating the implementation of its strategic plan to develop infrastructure, positioning Thailand as the region's logistics hub, as stated by the Prime Minister in his policy statement to the Parliament."
30 Jan. - The State Audit Office (SAO) recommends that the amendment of the joint investment contract for the high-speed train project connecting 3 airports must adhere to the principle of joint investment between the state and the private sector after the partial handover of the area was delayed by 2 years and 8 months from the plan. At the same time, the SAO is also continuously inspecting the solution to the PM 2.5 dust problem.
Mr. Suttipong Bunnithi, Deputy Auditor General, as a spokesperson for the State Audit Office or SAO, revealed that the high-speed train project connecting 3 airports (Don Mueang, Suvarnabhumi, U-Tapao) is a joint investment project between the state and the private sector (PPP) to be the main infrastructure in the development of the Eastern Special Development Zone or EEC seamlessly, including the development of areas to support the train services of the high-speed train project in the Makkasan and Sriracha areas, with an investment value of 224,544.36 million baht, with the state's joint investment not exceeding 149,650 million baht. The audit found that the project implementation was delayed from the plan, especially the handover of the Suvarnabhumi-U-Tapao (outside the city) area and the Makkasan area, including Sriracha, which was 2 years and 8 months behind schedule. The problems found in the Suvarnabhumi-U-Tapao (outside the city) area were the problem of land expropriation that could not be enforced by law successfully, the problem of changing the master plan causing the station location and route alignment to change. As for the Makkasan area, there is a problem with public canals that are an obstacle to area development, making it impossible to register for land rental by the SRT. The SRT is in the process of considering finding a replacement area. The problem of Bueng Sua Dam, which is an area for receiving and storing rainwater according to the Cabinet resolution.
In addition, the application for investment promotion cards has not been completed, such as the private partner still unable to find funding sources. The SRT and the private partner agreed to adjust the plan to pay joint investment of 149,650 million baht for the state to pay faster than the original schedule to pay when the construction is completed and open for train service, including allowing the private partner to pay the Airport Rail Link concession fee of 10,671.09 million baht in 7 installments from the original one-time payment within October 24, 2024. These impacts cause the public to lose the opportunity to use the high-speed train service. The SRT loses the opportunity to receive benefits from the private partner to enhance liquidity. It creates a risk of having to compensate for damages from the project not going according to plan. Amending the contract may create a risk that will affect the principle of joint investment. In this regard, the SAO is of the opinion that changing the principle of paying joint investment to the private partner faster must adhere to the principle of partnership between the state and the private sector, allocate risks and benefits fairly, maintain value for money and financial discipline of the state. As for changing the payment of the Airport Rail Link concession fee from a one-time payment to 7 installments, it should be considered that the net present value of the money paid in all 7 installments is equal to or higher than the original to prevent the state from losing benefits. For contract amendments, the principle of fairness between the state and the private sector must be maintained.
Mr. Suttipong also mentioned the solution to air pollution from PM2.5 dust that there are risk areas consisting of the upper northern area, the Bangkok area, including the agricultural area. From the analysis of the SAO, it was found that most of the measures were made to respond to specific events. Some measures are delayed and have not yet yielded tangible results. Activities that are carried out lack continuity. The budget mechanism is still unable to create integrated activities. Problem solving is not in the same direction. In this regard, the SAO has set a 2025 fiscal year audit plan for solving the PM2.5 dust problem and will report on the progress of the audit results later. -Thai News Agency
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