AERA1 can appeal to extend promotional certificate from BoI

Chatrudee Theparat
3-Airport high-speed rail link

AERA1 can appeal to extend promotional certificate from BoI

Asia Era One Co (AERA1), a joint investors and operators of a high speed rail project connecting three airports can appeal to the Board of Investment to extend a promotional certificate for privileges.

Eastern Economic Corridor Office (EECO) Secretary General, Chula Sukmanop said Asia Era One (AERA1) can appeal to the Board of Investment (BoI) to extend time of a promotional certificate.

Mr. Chula Sukmanop

The promotional certificate of AERA1 expired on January 22. The company asked for an extension two times for eight months, but the BoI unapproved to extend the certificate in the third time because the company has yet submitted an investment plan.

The company is a CP-led consortium that won the bid from the State Railway of Thailand (SRT) to build the high-speed rail linking Don Mueang, Suvarnabhumi and U-tapao airports, one flagship infrastructure project in the Eastern Economic Corridor (EEC).

The company asked the EECO to revise the contract based on a reason that the number of passengers had been changed thanks to account changes in economic conditions caused by the Covid-19 pandemic.

Mr Chula said the contract for the high-speed rail line linking Don Mueang, Suvarnabhumi and U-tapao airports are in the process to be consulting between the government and private sector.

He declined to answer that the company whether to continue the project, but saying the government is considering for a proposal of the company to amend the contract.

The State Railway of Thailand (SRT) and the EEC Committee have entered a contract with a private consortium to build the 220-kilometre railway at a cost of 224.54 billion baht and operate the system for 50 years. After the end of the 50-year concession, the property – worth about 300 billion baht – would be handed over to the state.

Phumtham Wechayachai, deputy prime minister and commerce minister who chaired the Eastern Economic Corridor Policy Committee, has authorized Mr Chula to monitor the process to amend the contract to conform to the legal.

“The government is a clear policy to drive the project on a schedule. If the private sector can implement the project, the project should be sped up because it plays a significant role to EEC especially the project would serve for logistics to U-tapao airport.”

Secretary general of the BOI, Narit Therdsteerasukdi said the agency could not extend the promotional certificate because the company had yet submitted its investment plan.

“AERA1 reported that the company is under a negotiation to amend the contract to the government which was not comply to BoI’s regulation. However, the agency would consider urgently if the company again submits the project.”