Thailand’s high-speed rail project connecting Don Mueang, Suvarnabhumi, and U-Tapao airports is set to finally move forward, with the signing of the revised contract expected this July.
Owned by the State Railway of Thailand (SRT), the project grants a 50-year concession to Asia Era One, a consortium led by the Charoen Pokphand Group.
The project, valued at THB 224 billion (USD 6.9 billion), is moving forward after more than five years of delays. Originally launched before the Covid-19 pandemic, the project faced significant setbacks due to global economic instability and the tightening of private sector liquidity. Financial institutions, wary of large-scale risks, slowed loan approvals, leaving Asia Era One unable to meet key payment deadlines under the original terms.
Prolonged negotiations followed, as the government and private sector sought to revise the investment structure in a way that alleviated pressure while preserving public interest. These talks have now resulted in a newly adjusted agreement that is in the final stages of review.
Once approved, the contract will be submitted to the Civil Service Commission and then forwarded to the Cabinet. Chula expressed confidence that the signing will take place this month.
The updated agreement addresses future risk mitigation, adds new revenue-sharing terms if returns exceed expectations, and allows the project to proceed without certain pending investment promotion certificates, ensuring immediate commencement once the contract is signed.