On October 17, 2019, Mr. Jiruttam Wisanjit, Chairman of the Board of the State Railway of Thailand (SRT), announced after the first meeting of the new SRT board that the board has approved the draft contract for the high-speed rail project connecting three airports in the Eastern Economic Corridor (EEC) (Don Mueang - Suvarnabhumi - U-Tapao) with a budget of 220 billion baht. The signing will take place between the State Railway of Thailand (SRT) and the joint venture of Charoen Pokphand Holding Co., Ltd. and partners (CPH Group) on October 25. Mr. Worawut Mala, the acting governor of SRT, has been assigned to sign the contract after it passes scrutiny from the Attorney General, the Eastern Special Development Policy Committee (ESDC), and the Cabinet. The SRT board has requested monthly progress reports from SRT.

          Mr. Worawut Mala stated that the contract signing will definitely occur on October 25, with a construction period of 5 years. After negotiations with the private sector, it was agreed to extend the deadline for the private sector to begin construction (Notice to Proceed: NTP) to within 2 years from the contract signing, instead of the originally stated 1 year. There is also a provision to extend the construction contract further if unforeseen circumstances arise that cannot be resolved. However, there will be no cash compensation to the private sector; instead, compensation will be in the form of extended construction time.

          Nevertheless, the possibility of canceling this project contract after signing is very low, as both parties are committed to proceeding without placing undue burdens on either side that would lead to the cancellation of construction. Regarding land expropriation, a royal decree for land expropriation (Royal Decree) will be proposed to the Cabinet within November to December this year. Once approved, expropriation can begin immediately, aligning with the 3-month period after the contract signing, during which the private sector is required to design the construction plan for land expropriation. The SRT will be responsible for issues related to trespassers, while the private sector will handle land expropriation and coordination with the land-owning agencies. The SRT is confident that it can deliver over 50% of the land as specified in the RFP within 1-2 years.

          "The problematic area for land expropriation is along the Don Mueang - Bang Sue - Phaya Thai route, which faces many issues, including trespassers, power poles, and public utilities, especially the oil pipeline that requires an environmental impact assessment (EIA) before relocation," Mr. Worawut said.

          Mr. Jiruttam commented on the Hopwell case, stating that during the first meeting of the new SRT board, Mr. Worawut Mala reported information after a working group led by Mr. Phisak Jitwiriyawasin, Deputy Permanent Secretary of the Ministry of Transport, found new evidence and assigned the SRT to file a lawsuit in the civil and commercial court regarding the business operations of foreigners in Thailand, as Hopwell (Thailand) Co., Ltd. did not apply for and receive exemptions under the announcement of the Revolutionary Council No. 281 (RC 281).

          However, regarding the Hopwell case, which has already been ruled by the court, requiring compensation of approximately 25 billion baht, consisting of 12 billion baht in principal and 13 billion baht in interest due on October 19, it has been assigned to the SRT to discuss with the Ministry of Transport, as a joint contracting party, before preparing to request a stay of enforcement from the Supreme Administrative Court by October 18, to seek temporary protection and delay the payment of compensation. However, if the court does not accept the consideration, the SRT is ready to proceed according to the court's orders.

          Mr. Jiruttam further stated that on October 17, 2019, at 9:00 AM, the SRT board will meet to consider the Thai-Chinese high-speed rail project on the Bangkok-Nakhon Ratchasima route, covering 253 km, with an investment budget of 179 billion baht for contract 2.3 (rail systems, electrical and mechanical systems, including the procurement of trains and training of personnel) with a budget of 50.6 billion baht.

          Reports indicate that the Hopwell project has been ongoing for over 20 years, raising questions about why the SRT allowed a company with foreign ownership exceeding the limit to undertake such a large project worth tens of billions of baht without thorough scrutiny. This is seen as negligence that risks state interests, as the SRT currently has several rail construction projects, including dual-track railways and high-speed rail, making it crucial to investigate the companies bidding or awarded contracts to prevent potential conflicts of interest that could lead to future wasteful expenditures.

However, the current chairman of the SRT board admits that there was indeed no scrutiny regarding the Hopwell case, which dates back several decades and may have involved errors at that time.

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