Amendment to High-Speed Rail Contract Focuses on Mutual Benefits
Thailand's government seeks mutual benefits with the private sector through contract amendments for the high-speed rail project with Asiaera One Co., Ltd. Key amendments include installment-based public investment cost distribution and collateral provisions for timely completion. Additional revenue sharing and updated force majeure clauses are also proposed.
During a meeting chaired by Deputy Prime Minister Pichai Chunhavajira, Thailand's government announced significant principles to amend the high-speed rail project contract between the State Railway of Thailand (SRT) and Asiaera One Co., Ltd. The Economic and Environment Centre's Principles (EECP) include distributing the Public Investment Cost (PIC) in instalments based on project progress, with the private sector required to provide collateral ensuring project completion in five years.
Royalties for the Airport Rail Link (ARL) will be paid in instalments, and additional revenue sharing may occur if the private sector's return exceeds a specified threshold.
A memorandum of agreement will allow immediate issuance of the Notice to Proceed (NTP) with adjusted contract clauses on force majeure.
These principles will be presented to the Cabinet for approval, leading to a negotiated draft amendment contract.
The project, initiated in 2019, has faced delays due to the Covid-19 pandemic, and the proposed amendments aim to facilitate its completion.