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CP seeks to terminate High-Speed Rail 3 Airports contract

CP seeks to terminate High-Speed Rail 3 Airports contract

Matichon•Economy•1h ago

Reader Briefing

Deputy Transport Minister Siripong Angkasakulkiat discusses solutions for the High-Speed Rail Linking 3 Airports project following CP Group's request to terminate the contract.

  • •Asia Era One Co., Ltd. (CP Group) sent a letter confirming its right to request termination of the High-Speed Rail Linking 3 Airports project contract.
  • •Siripong Angkasakulkiat stated that unilateral termination by the private sector is not legally complete under current conditions.
  • •The State Railway of Thailand (SRT) will negotiate with CP Group on August 27 regarding Airport Rail Link operations and work scope adjustments.
  • •The private sector wants to change the payment structure from payment upon completion to a 'build-and-pay' model.

Overview

  • •Asia Era One Co., Ltd. (CP Group) has submitted a second letter confirming the exercise of its right to terminate the High-Speed Rail Linking 3 Airports project contract.
  • •Siripong Angkasakulkiat stated that the termination request is viewed as a matter of contract management rights and is not legally complete as it does not meet the four required conditions.
  • •Siripong Angkasakulkiat ordered the State Railway of Thailand to negotiate with Asia Era One Co., Ltd. (CP Group) to reduce the scope of work overlapping with the Thai-Chinese high-speed rail section between Bang Sue Grand Station and Don Mueang.
  • •Siripong Angkasakulkiat noted that if Asia Era One Co., Ltd. (CP Group) stops operating the Airport Rail Link, the State Railway of Thailand must find another provider to ensure continuous public service.
  • •The State Railway of Thailand will negotiate with Asia Era One Co., Ltd. (CP Group) on August 27, and the results will be presented to the Eastern Economic Corridor (EEC) Policy Committee.
  • •Asia Era One Co., Ltd. (CP Group) is requesting a contract amendment to change the payment model to a 'build-and-pay' system, which the government finds difficult to implement in practice.

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Key Quotes

Siripong Angkasakulkiat
"Legally and under the joint investment contract, unilateral termination by the private sector is not yet complete because there are 4 main conditions for contract termination."
ทางกฎหมายและสัญญาการร่วมลงทุนฯ การบอกเลิกสัญญาฝ่ายเดียวโดยเอกชน ยังไม่เป็นผลสมบูรณ์ เนื่องจากเหตุแห่งการสิ้นสุดสัญญามี 4 เงื่อนไขหลัก

Key Entities

Person

Siripong Angkasakulkiat(สิริพงศ์ อังคสกุลเกียรติ)
Deputy Minister of Transport.
Anan Phonimdaeng(อนันต์ โพธิ์นิ่มแดง)ℹ️
Governor of the State Railway of Thailand.

Organization

State Railway of Thailand(การรถไฟแห่งประเทศไทย)ℹ️
The government agency managing the high-speed rail project and Airport Rail Link.
Asia Era One Co., Ltd.(บริษัท เอเชีย เอรา วัน จำกัด)
The private company under CP Group that requested to terminate the high-speed rail contract.
CP Group(กลุ่ม ซี.พี.)ℹ️
The corporate group associated with Asia Era One Co., Ltd.
Eastern Economic Corridor Policy Committee(คณะกรรมการนโยบายเขตพัฒนาพิเศษภาคตะวันออก)
The committee (EEC Board) that will receive the results of negotiations between the State Railway of Thailand and CP Group.

Place

Don Mueang-Suvarnabhumi-U-Tapao(ดอนเมือง-สุวรรณภูมิ-อู่ตะเภา)
The three airports linked by the high-speed rail project.
Bang Sue Grand Station(สถานีกลางบางซื่อ)ℹ️
A location on the Thai-Chinese high-speed rail section 4-1.
Don Mueang(ดอนเมือง)ℹ️
A location on the Thai-Chinese high-speed rail section 4-1.

Policy

High-Speed Rail Linking 3 Airports Project(รถไฟความเร็วสูงเชื่อม 3 สนามบิน)
The infrastructure project currently facing contract termination requests from Asia Era One Co., Ltd.