Thai Enquirer
House panel says CP-backed three-airport rail project no longer financially viable
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The CP-backed three-airport high-speed rail project is no longer financially viable under its existing model, a House committee concluded on Thursday, as the government weighs contract amendments, termination and a cheaper 160 km/h alternative to the stalled 224.5-billion-baht scheme.
Key facts
- Approved by the Cabinet in 2018 and awarded to the Asia Era One consortium, the project is one of the country’s largest public-private partnership infrastructure schemes and a cornerstone of the Eastern Economic Corridor (EEC)
- The 50-year concession, comprising five years of construction and 45 years of operations, was signed in 2019 but has yet to receive a notice to proceed, preventing full-scale construction from beginning
- The House Committee on Judiciary, Independent Organs, State Attorney Organ, State Enterprises, Public Organizations, and Funds reached the conclusion after questioning representatives of the State Railway of Thailand (SRT) and CP Group-led
- It is designed to connect the three airports through a 220-kilometre railway by upgrading and extending the existing Airport Rail Link corridor.
Summary
The House Committee on Judiciary, Independent Organs, State Attorney Organ, State Enterprises, Public Organizations, and Funds reached the conclusion after questioning representatives of the State Railway of Thailand (SRT) and CP Group-led Asia Era One over the long-delayed project linking Don Mueang, Suvarnabhumi and U-Tapao airports.
Although both sides formally want the project to continue, the committee found that higher borrowing costs and changed economic conditions have made the existing scheme commercially unviable for the private sector.