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Cabinet Approves M6 Motorway Contract Change for Early Private Sector Payment

Cabinet Approves M6 Motorway Contract Change for Early Private Sector Payment

Khaosod•Economy•2h ago

Reader Briefing

The Thai Cabinet has approved an amendment to the M6 Motorway contract to allow partial advance payments to the private contractor for completed work, addressing delays and financial stability concerns.

  • •The Thai Cabinet approved an amendment to the M6 Motorway contract.
  • •The amendment allows the Department of Highways to make partial advance payments to the private contractor for completed work.
  • •This change is to address construction delays impacting the original payment schedule and the contractor's financial stability.
  • •The adjustment aims to maintain the project's financial stability without incurring additional compensation.

Overview

  • •Construction of the M6 Motorway by the Department of Highways faced obstacles, requiring design adjustments and a 25-month extension.
  • •The delays in land handover to the private contractor impacted the original contract terms, preventing payment until after the service launch.
  • •The delayed payment threatened the private contractor's ability to service debts with financial institutions.
  • •The Ministry of Transport proposed amending the contract to allow partial payment for completed system work before the service opening.
  • •As of January 10, 2025, completed work was valued at approximately 128.55 million THB, to be paid from the toll fee fund.
  • •The Deputy Government Spokesperson stated the amendment maintains project financial stability without additional damages and the private contractor agrees not to claim further compensation.
  • •The operational and maintenance period of 30 years remains unchanged.
  • •The proposed action has been considered by the Committee on the Public-Private Partnership Policy and complies with relevant legal procedures.

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Key Quotes

Deputy Government Spokesperson
"This contract amendment is not considered additional compensation but an adjustment of the payment schedule for some installments to maintain the project's financial stability."
การแก้ไขสัญญาครั้งนี้ไม่ถือเป็นการจ่ายค่าเสียหายเพิ่มเติม แต่เป็นการปรับจังหวะเวลาการจ่ายค่าตอบแทนบางส่วน เพื่อรักษาเสถียรภาพทางการเงินของโครงการ

Key Entities

Organization

Cabinet(ครม.)ℹ️
The Thai Cabinet that approved the amendment to the M6 Motorway contract.
Department of Highways(กรมทางหลวง)ℹ️
The government agency responsible for the M6 Motorway construction and making payments to the private contractor.
Ministry of Transport(กระทรวงคมนาคม)ℹ️
The ministry that proposed the contract amendment for the M6 Motorway.
Committee on the Public-Private Partnership Policy(คณะกรรมการนโยบายการร่วมลงทุนระหว่างรัฐและเอกชน)
The committee that reviewed and approved the M6 Motorway contract amendment.

Law

Public-Private Partnership Act B.E. 2019(พระราชบัญญัติการร่วมลงทุนระหว่างรัฐและเอกชน พ.ศ. 2019)
The law under which the Committee on the Public-Private Partnership Policy operates and approved the M6 Motorway contract amendment.