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Cabinet Approves M6 Contract Change for Partial Compensation on Civil Works Delays

Cabinet Approves M6 Contract Change for Partial Compensation on Civil Works Delays

Matichon•Politics•11h ago

Reader Briefing

The Thai Cabinet has approved an amendment to the M6 highway contract, enabling partial advance payments for completed civil works to address project delays.

  • •The Thai Cabinet approved a contract amendment for the M6 highway (Bang Pa-in–Nakhon Ratchasima).
  • •The amendment allows the Department of Highways to make partial payments for completed civil works before the official opening date.
  • •This change aims to mitigate financial risks for the private sector partner caused by construction delays and early handover issues.
  • •A payment of approximately 128.55 million THB for completed work as of January 10, 2025, will be disbursed from toll revenue funds.

Overview

  • •The M6 highway project, a joint public-private venture (PPP Gross Cost), faces delays due to civil works requiring design changes and extensions.
  • •Construction delays by the Department of Highways led to an estimated 25-month handover delay to the private sector partner, impacting the service opening date.
  • •The contract amendment allows the Department of Highways to pay a portion of system construction costs and related components before the service opening date.
  • •This partial payment is exclusively for completed civil works, not exceeding the private partner's original proposal, and will not impact the total project compensation.
  • •As of January 10, 2025, completed works are valued at approximately 128.55 million THB.
  • •The payment will be funded from the toll fee revenue account and will not significantly affect the fund's financial status.
  • •The amendment is not considered an additional compensation for damages but a recalibration of payment timing to maintain financial stability.
  • •The private partner agrees not to claim further damages, and the 30-year operation and maintenance period remains unchanged.

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Key Entities

Organization

Cabinet(คณะรัฐมนตรี)ℹ️
The executive body of the Thai government that approved the M6 highway contract amendment.
Ministry of Transport(กระทรวงคมนาคม)ℹ️
The government ministry that proposed the contract amendment for the M6 highway project.
Department of Highways(กรมทางหลวง)ℹ️
The government agency responsible for the civil works of the M6 highway, facing construction delays.

Place

M6 Highway(ทางหลวงพิเศษ M6)
The expressway project connecting Bang Pa-in to Nakhon Ratchasima, currently experiencing delays and contract modifications.

Person

N.S. Lalida Periwatthanawut(น.ส.ลลิดา เพริศวิวัฒนา)
Deputy Spokesperson for the Prime Minister's Office who announced the Cabinet's decision regarding the M6 highway contract.

Law

Public-Private Partnership Act B.E. 2019 (2019)(พระราชบัญญัติการร่วมลงทุนระหว่างรัฐและเอกชน พ.ศ. 2019)
The legislation under which the M6 highway public-private partnership was considered and approved.

Timeline

January 10, 2025(10 มกราคม 2025)
The date as of which the value of completed construction works for the M6 highway project was calculated.