Cabinet OKs Motorway Korat Contract Change for System Works Payment

Thansettakij•Economy•12h ago

Reader Briefing

Thailand's cabinet has approved an amendment to the Motorway Korat (M6) contract, allowing for advance payment of completed system works to address construction delays and ensure project financial stability.

•The Thai Cabinet approved an amendment to the Motorway Korat (M6) contract on February 17, 2026.
•The amendment allows the Department of Highways to pay for completed system and related works before the service commencement date.
•This change is intended to address construction delays in civil works and maintain the project's financial stability, with private sector partners agreeing not to claim further damages.

Overview

•On February 17, 2026, the Cabinet approved the contract amendment.
•The Cabinet approved the amendment to the Motorway Korat (M6) O&M contract.
•The amendment was necessary due to delays in civil works, which impacted the handover of construction areas to the private sector by approximately 25 months.
•Completed system and related works are valued at approximately 128.55 million Baht as of January 10, 2025.
•The Department of Highways can now pay a portion of system construction costs before the service commencement date, provided the works are completed and within the original private sector proposal.
•This adjustment will prevent the private contractor from facing difficulties in repaying loans to financial institutions due to delayed payments.
•The Motorway Korat project is a 196 km highway where the government is responsible for civil works and the private sector for systems, operations, and maintenance under a PPP Gross Cost model for up to 30 years.
•The contract amendment has undergone consideration by the State-Private Partnership Policy Committee, adhering to relevant legal procedures.

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Key Quotes

Lalida Perwivutthana

"This contract amendment is not considered an additional compensation payment, but rather an adjustment to the timing of some compensation payments to maintain the project's financial stability."

การแก้ไขสัญญาครั้งนี้ไม่ถือเป็นการจ่ายค่าเสียหายเพิ่มเติม แต่เป็นการปรับจังหวะเวลาการจ่ายค่าตอบแทนบางส่วน เพื่อรักษาเสถียรภาพทางการเงินของโครงการ

Key Entities

Organization

Cabinet(คณะรัฐมนตรี)ℹ️

The governmental body responsible for approving contract amendments for major infrastructure projects in Thailand.

Department of Highways(กรมทางหลวง)ℹ️

The Thai government agency responsible for civil works on the Motorway Korat project and for making payments to the private contractor.

Ministry of Transport(กระทรวงคมนาคม)ℹ️

The ministry that proposed the contract amendment for the Motorway Korat project to the Cabinet.

State-Private Partnership Policy Committee(คณะกรรมการนโยบายการร่วมลงทุนระหว่างรัฐและเอกชน)

The committee that reviewed and approved the contract amendment for the Motorway Korat project in accordance with the State-Private Joint Venture Act.

Place

Motorway Korat(มอเตอร์เวย์โคราช)

The project name referring to the highway route M6 from Bang Pa-in to Nakhon Ratchasima.

Person

Lalida Perwivutthana(นางสาวลลิดา เพริศวิวัฒนา)

Deputy Government Spokesperson for the Prime Minister's Office, who announced the Cabinet's decision.

Law

Motorway No. 6(ทางหลวงพิเศษระหว่างเมืองหมายเลข 6)

The legal designation for the Motorway Korat project (M6), part of Thailand's expressway network.

State-Private Joint Venture Act B.E. 2019 (2019)(พระราชบัญญัติการร่วมลงทุนระหว่างรัฐและเอกชน พ.ศ. 2019)

The law governing public-private partnerships in Thailand, under which the Motorway Korat contract was reviewed.