The high-speed rail project connecting three airports (Don Mueang-Suvarnabhumi-U-Tapao) over a distance of 220 kilometers, valued at 220 billion baht, has garnered significant attention. The government has set a deadline for signing the agreement by October 15, 2019, between the State Railway of Thailand (SRT) and the winning bidder, a consortium led by Charoen Pokphand Holding Co., Ltd. and its partners (CPH Group), which includes BEM, China Railway Construction Corporation, Ch. Karnchang Public Company Limited, and Italian-Thai Development Public Company Limited.

    The primary purpose of expediting the signing is linked to the development of the Eastern Economic Corridor (EEC), which is one of five highlighted projects aimed at attracting foreign investment and promoting sustainable economic growth in Thailand.

    Recently, the Industrial Estate Authority of Thailand (IEAT) signed a joint investment agreement with Gulf MTP LNG Terminal Co., Ltd., a joint venture between Gulf Energy Development Public Company Limited (GULF), to develop the infrastructure for Map Ta Phut Industrial Port Phase 3 (Phase 1) under a public-private partnership (PPP) agreement. This allows the private sector to operate on a 200-rai area and allocate some returns to the government as per the agreement. This marks the first project in the government's mega-projects that has been signed, and if there are no further issues, the second project is expected to be the high-speed rail connecting the three airports.

High-Speed EEC Builds Investment Confidence

    Transport Minister Saksayam Chidchob has clearly stated that the high-speed rail project connecting the three airports is crucial for national development. There is considerable concern because the groundbreaking for the project marks the true start of the EEC and instills confidence in investors regarding the country's readiness to accommodate upcoming investments.

    However, the high-speed rail project is currently facing significant delays. Although it received cabinet approval back in May 2019, negotiations with the winning CP Group have been prolonged without resolution, primarily due to land expropriation issues that the SRT, as the project owner, has not been able to fully deliver to the private sector.

    "The government wants this to succeed, not just the high-speed rail connecting the three airports but everything in the EEC, as it will boost foreign investor confidence. If one company fails, there are still others, but we believe there is no need to reach out to a second company; everything should be concluded. Negotiations have been thorough. Comparing to the era of Prime Minister Prem Tinsulanonda, there was the Eastern Seaboard project, but during Prime Minister Prayuth Chan-o-cha's administration, we have the EEC project. Therefore, this is a significant achievement for the Prime Minister," said Saksayam.

Ready to Deliver Land

    Acting SRT Governor Worawut Mala stated that the main concerns for the CP Group are the lack of approved funding and the unclear land delivery plan, which is expected to take 2-3 years to clear, including encroached land, expropriation, and the relocation of public utilities. As the operator, we must expedite the signing of the contract by October 15, while allowing 2 years for the SRT to clear the land delivery, and the CP Group to design the construction details.

    The project will require a construction area of 3,571 rai, plus an additional 850 rai for expropriation, totaling 4,421 rai, with 3,151 rai ready for delivery, accounting for 88% of the total area. There are still two problematic areas: 210 rai of encroached land with 513 encroachers and 210 rai under 83 rental contracts. The Makkasan station can deliver 100 rai, and Si Racha can deliver 25 rai. There are also high-voltage power pole relocations, oil pipelines, and gas pipelines in the area of Khlong Haeng and the bend on Rama VI Road, as well as oil pipelines from the Thai Petroleum Pipeline Company (Tapline) from Lat Krabang heading to U-Tapao, and PTT gas pipelines near Samian Nari Temple to Don Mueang Airport over 11 km, and drainage pipes in Bangkok around Samsen.

    "We are confident that we can deliver 72% of the land and resolve the remaining issues within one year after signing the joint investment agreement, allowing the private sector to start construction. The expropriated area of 850 rai consists of 12 plots, mostly in Chachoengsao province, with 400 rai for constructing the station and maintenance depot. The Royal Decree on land expropriation is currently under review by the Council of State, and it is expected to be announced soon," Worawut stated.

    On the other hand, Kulit Sombatsiri, Permanent Secretary of the Ministry of Energy, mentioned that regarding the relocation of obstacles along the construction route of the high-speed train connecting the three airports, the Ministry of Energy will discuss with the SRT, the Electricity Generating Authority of Thailand (EGAT), and PTT Public Company Limited to outline the details of the removal of obstacles along the construction route.

    In terms of the Ministry of Energy's involvement, it has been found that the obstacles requiring removal include power lines, power poles, oil pipelines, and natural gas pipelines. Relevant agencies will need to assess their responsibilities to agree on who will bear the costs, how much, and how long it will take. The conclusions will be presented to Energy Minister Sonthirat Sonthijirawong, who will convene a meeting on this matter next week.

    "The Ministry of Energy has been assigned by the Energy Policy and Planning Office (EPPO) to investigate obstacles related to agencies under the ministry within one year. The meeting on October 3 must review which areas the high-speed train construction will pass through, what structures will be affected, and how to relocate or change the positioning of structures such as gas pipelines, oil pipelines, and power poles. We need to consider the impact on communities and how to assist them. Who will be responsible for the costs at each point?" Kulit stated.

    Deputy Prime Minister and Minister of Public Health Anutin Charnvirakul, responsible for the Ministry of Transport, confirmed that the requirement for the winning private sector group, the consortium led by Charoen Pokphand Holding Co., Ltd. and its partners (CPH Group), to sign the contract on October 15 is not against the CPH group but is looking towards the future. Once the contract is signed, the price will be clear, allowing the private sector to negotiate with suppliers and move forward with the work. Furthermore, the bidding framework is only open until November 7, 2019.

    The process of having CPH sign the contract is for the nation’s benefit because if the high-speed rail connecting the three airports remains unresolved, it will undermine investor confidence in the entire EEC project, leading to immediate problems. Therefore, it is essential to advance other EEC-related projects. By issuing the letter calling for the CPH group to sign the contract, it means they are fully aware of the situation.

    "I believe that on October 15, the CPH group will definitely sign the construction contract. If they do not show up, they will be blacklisted by the state, which would tarnish the company's reputation. Moreover, it means that besides CP, the partner companies such as BEM, China Railway Construction Corporation, Ch. Karnchang Public Company Limited, and Italian-Thai Development Public Company Limited will also be affected in future government bidding. The consequences would be immense," Anutin concluded.

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