The high-speed rail board for the three airports held a marathon meeting lasting over 9 hours before deciding that "CP" won the bid due to offering the lowest price.

 

Mr. Worawut Mala, Deputy Governor of the Asset Management Business Group and Acting Governor of the State Railway of Thailand (SRT), revealed after the meeting of the selection committee for private investment in the high-speed rail project that after SRT opened Envelope 3 (financial aspect) on December 11, it was found that the consortium led by Charoen Pokphand Holding Co., Ltd. and its partners submitted the lowest bid, which was below the criteria set forth in the tender documents (TOR) regarding state subsidies as determined by the Cabinet (Cabinet) not exceeding 119 billion baht.


“I cannot disclose the amount that CP proposed yet, as we need to review the related information. Today, we invited them to verify some figures, and CP participated in the clarification. However, they will provide answers to the information requested by SRT next week. Therefore, there will be another meeting next week. The price proposed by CP is indeed lower as reported,”

 

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According to reports, during the opening of Envelope 3 on December 11, it was found that the CP group proposed a construction cost that required state subsidies about 100 billion baht lower than another bidder.

For the selection committee meeting today (December 14), discussions focused on the components of Envelope 3, which consists of 8 aspects: 1. Work quantity account 2. Business plan for project implementation 3. Financial plan 4. Sourcing of funds for project execution 5. Assets used in project execution and ownership of assets 6. Financial returns of the project throughout the joint investment contract duration 7. Amount of state support requested and the amount received from the private sector 8. Fare rate determination. All 8 points must be interconnected to demonstrate the feasibility and appropriateness of project development.


The atmosphere of the committee meeting was tense, starting at 11:00 AM and lasting until 8:00 PM, totaling 9 hours. Mr. Worawut Mala, representing the project owner agency, chaired the committee, which included representatives from the Bureau of the Budget, the State Enterprise Policy Office (SEPO), the Office of the Attorney General, and up to 4 qualified experts as committee members.


Additionally, during the selection committee meeting around 6:44 PM, representatives from the CP group, namely Mr. Porncharoen Thanana and Mr. Pirun Wacharamontree, joined the meeting room. Subsequently, around 7:15 PM, Mr. Noppadol Dechudom, Vice President of the Sustainability Management, Governance, and Corporate Communication Office of Charoen Pokphand Group, arrived to participate in the meeting.

 

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The high-speed train project connecting the three airports has a total investment value of 220 billion baht, divided into an initial investment in the railway transport system of 168 billion baht, development of areas to support rail services of 45.1 billion baht, and the rights to operate the Airport Rail Link of 10.6 billion baht. The private sector will receive a 50-year concession, with 5 years for design and construction and 45 years for service operation. The economic return analysis for the entire project is approximately 700 billion baht.


There are 2 bidders for this project: 1. BSR Joint Venture, consisting of BTS Group Holdings Public Company Limited, Sino-Thai Engineering and Construction Public Company Limited, and Ratchaburi Electricity Generating Holding Public Company Limited. 2. Charoen Pokphand Holding Co., Ltd. and partners, including Charoen Pokphand Holding Co., Ltd., Italian-Thai Development Public Company Limited, China Railway Construction Corporation Limited (People's Republic of China), Ch. Karnchang Public Company Limited, and Bangkok Expressway and Metro Public Company Limited.

 

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