BANGKOK, November 2025 – The future of Thailand's ambitious 224-billion-baht high-speed rail project connecting Don Mueang, Suvarnabhumi, and U-Tapao airports is set to be determined by the Cabinet. The project, a key component of the Eastern Economic Corridor (EEC) initiative, faces a critical decision regarding proposed amendments to its concession agreement.

The private consortium, Asia Era One, has formally requested revisions to the 50-year concession agreement, citing significant impacts from the COVID-19 pandemic and global conflicts. A central point of contention is the consortium's proposal to shift to a "pay-as-you-build" financing model, a departure from the original public-private partnership framework.

The Transport Ministry has expressed strong reservations about altering the contract, particularly the proposed financing shift. Officials are concerned that any amendment could lead to legal challenges from other firms that participated in the initial bidding process and could set a problematic precedent for future infrastructure projects. Conversely, the EEC Office prioritizes the project's advancement and has not opposed the amendments.

Legal counsel from the Office of the Attorney General has noted that the original contract explicitly excludes events like pandemics or international conflicts as grounds for revision under force majeure clauses. In an effort to incentivize progress, the Transport Ministry has also offered the consortium the opportunity to invest in a proposed high-speed rail extension to Trat province, which could potentially boost passenger numbers and airline activity at U-Tapao Airport. The upcoming Cabinet decision will be pivotal, balancing the need for project continuity and economic development against contractual integrity and potential legal ramifications.

Source: Google News