EEC/contract revision for high speed rail

Chatrudee Theparat

Eastern Economic Corridor Office (EECO) will propose the cabinet to revise the contract for high speed rail connecting three airports by this July while construction works are set to begin by January 2025.

Chula Sukmanop, EECO's secretary general, expected its revised contract to be submitted to the cabinet within this July. It is signed with Asia Era One, the operator of high speed train connecting three airports of Suvarnabhumi, Don Mueang and U-tapao airports.

He said the State Railway of Thailand (SRT) and its contracting parties have agreed upon the acceptance of the construction area, and a consensus was reached on the negotiations on the solutions from the effects of COVID-19 and the Russian-Ukrainian war.

Chula Sukmanop

Currently, the SRT is preparing to present the relevant information to the EEC for consideration to propose to the cabinet to review the public-private partnership (PPP) principles, in accordance with the cabinet resolution that approved the project on 27th March 2018.

Then, the SRT and the contracting parties (Asia Era One Co) will negotiate a draft of revised contract to submit to the Attorney General's Office to review and send to the EEC Policy Committee to submit to the cabinet for approval.

He said its construction works are set to begin by January 2025. The solutions are based on a public-private partnership whereby the public sector does not lose benefits nor shall the private sector gain unduly benefit.

This includes amending the payment method for the state co-investment in the project, whereby the state will begin investing sooner according to the completion period of the construction and the private sector agrees to place a full amount of collateral (bank guarantee) with 120 billion baht on construction costs.

Additionally amending the method for royalty fee payment for the Airport Rail Link (ARL) project, the private sector will pay in 7 installments, with the SRT receiving royalty fees of 10.67 billion baht in total while the private sector bears the interest, excess financial fees, and expenses.

The meeting, chaired by Deputy Prime Minister and Minister of Commerce Phumtham Wechayachai, also monitored the latest developments of the other three key PPP infrastructure including U- Tapao Airport and the Eastern Aviation City.

He said the Royal Thai Navy has issued an announcement for proposals for the construction of the second runway and taxiway for the U - Tapao Airport and is expected to consider technical proposals by June 2024 and its construction is set to be completed by 2028.

Phumtham Wechayachai

As for coordination with the private sector regarding the Notice to Proceed (NTP), it is expected to deliver within 2024 and U- Tapao airport will be operational by 2029.

Mr Chula said the committee endorsed rental fees of EECO’s land plots in U-Tapao airport with 106,800 baht per rai. They are 210 rai of maintenance repair and overhaul (MRO), 70 rai of aviation school, 154 of infrastructure project 5 rai for flight control tower.

The third flagship project of the Laem – Chabang Port Phase 3- the F Port, further progress has been made to the marine construction by 29.02%, with reclamation areas 1 and 2 having been completed with the 3rd sea reclamation area currently in the process of being filled. The F1 Port is expected to be operational by 2027.

Map Ta Phut Industrial Port Phase 3, work on reclamation of the LNG Plot (Plot B) and related business area (Plot C) has been completed. As for the liquid cargo port area (Plot A), 30.95%progress was made. The construction of the Part 1 of Phase 3 is set to be completed by 2027.

The meeting also approved the announcement of the establishment of the EEC Chachoengsao Blue Tech City Industrial Estate, on approximately 1,172 Rai (180 hectares approx.) Khao Din land plot in the Bang Pakong district of Chachoengsao province.

The industrial estate will support the expansion and the development of special target industries such as next generation automotive, intelligent electronics, aviation and logistics, digital, and education and human resource development.

It is expected that an investment of approximately 156 billion baht will be made to support domestic entrepreneurs to produce up to 90% of equipment parts for electric vehicles produced within the industrial estate.

This comes with creating employment opportunities for approximately 20,000 people and transferring knowledge from foreign experts. The Blue Tech City Industrial Estate will also have a research and development center to support the advanced technology knowledge for students and stimulating the economy at both the community level and the national level.

EEC board also approved the draft of EEC Environmental Plan 2023 – 2027, prepared by the Ministry of Natural Resources and Environment, and tasked the EEC with acquiring cabinet approval.

The plan aims to promote environmental management in parallel with the continuous development of cities and communities, balance various development projects, effectively take caution with the environment and community, and encourage sustainable business investments in the EEC.