“Saksayam” Orders Resolution of Transportation Issues, Set to Announce Progress on August 1st, Declares Changes to the Nakhon Pathom – Cha-am Motorway Route if Land Acquisition Issues Persist, Accelerates Review of Red Line Railway Contracts, Studies PPP Consolidation

Mr. Saksayam Chidchob, Minister of Transport, revealed that the 20-year strategy for developing Thailand's transportation system marks the beginning of a review of previously implemented transportation projects while continuing future projects. Current construction projects include the Bang Yai – Kanchanaburi motorway, which previously faced land acquisition issues. Prime Minister Gen. Prayuth Chan-o-cha has instructed to expedite solutions, and the Cabinet has resolved to review the land acquisition budget, allowing for land acquisition and construction to proceed, with confidence that it will be operational by 2025.

The operation and maintenance (O&M) project for the 196-kilometer Bang Pa-in – Nakhon Ratchasima motorway and the 96-kilometer Bang Yai – Kanchanaburi route has already selected a winning private sector bidder, with results expected to be submitted to the Cabinet for consideration next week. This project saw bids from the private sector that were 36 – 37% lower than the estimated price, with the BGSR joint venture offering the lowest bid.

Mr. Saksayam also stated that the ministry will expedite the continuation of projects such as the Nakhon Pathom – Cha-am motorway, which is a new construction project currently under review for issues and obstacles. It has been found that understanding land acquisition in Phetchaburi province is crucial. If this understanding can be achieved, the project can be presented to the Cabinet immediately. However, if issues arise, it may require a review and adjustment of the route, along with an environmental impact assessment (EIA), which could cause delays.

Regarding rail infrastructure, which the government is promoting as a primary transportation system for the future, the second phase of the double-track railway project is still under consideration by the National Economic and Social Development Council (NESDC). The electric train project is currently in the process of announcing the bidding documents (TOR), while the progress of the red line suburban railway is expected to be postponed to 2023 due to the private contractor requesting a 500-day extension.

“The red line is currently 70-80% complete, facing issues with the Bang Sue central station, which was originally to be managed by the Airport Rail Link. However, due to budgetary constraints, we are studying new investment models for construction, train operations, and station management,” he added.

Initially, the government will allow private sector participation in public-private partnership (PPP) projects to alleviate the burden on public budget allocation. This will include PPP arrangements for all 29 stations, comprising 28 minor stations and 1 major station, which is the Bang Sue central station. Particularly for the central station, it must be jointly managed, as studies indicate that separating the management contracts will lead to losses in the first seven years due to delays at the Bang Sue central station, which will push back the opening of the red line electric train and the Bang Sue central station to 2023 from the original plan to open in January 2021.

Reports from the State Railway of Thailand (SRT) indicate that the delays stem from issues with the first contract related to the relocation of public utilities, eviction of encroachers, and the impact of COVID-19, which has hindered suppliers from Japan from coming to Thailand, affecting the work under the third contract, including electrical and mechanical systems and the train cars for Bang Sue-Rangsit and Bang Sue-Taling Chan. This has led the private contractor, a joint venture of Mitsubishi-Hitachi-Sumitomo, to request an extension.

SOURCE :www.bangkokbiznews.com