Bangkok Post
State Railway suing CP consortium for B13.3 billion
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The State Railway of Thailand (SRT) has filed a suit with the Central Administrative Court demanding that Asia Era One Co, a consortium led by the Charoen Pokphand Group, pay 13.3 billion baht owed under the contract to build the long-stalled three-airport high-speed rail project.
Key facts
- The State Railway of Thailand (SRT) has filed a suit with the Central Administrative Court demanding that Asia Era One Co, a consortium led by the Charoen Pokphand Group, pay 13.3 billion baht owed under the contract to build the
- The consortium’s major shareholders are CP Group through Charoen Pokphand Holding (87.15%), Bangkok Expressway and Metro Plc (5.14%), China Railway Construction Corporation (5.14%) and Italian-Thai Development (2.57%)
- The state enterprise filed the lawsuit on Wednesday to exercise its rights under the contract for the project designed to link Don Mueang and Suvarnabhumi airports with U-tapao airport in Rayong, the SRT public relations department said.
- The SRT signed the 224-billion-baht contract with Asia Era One on Oct 24, 2019
- It stipulated that the company pay 10.67 billion baht for its right to co-invest in the project within two years after the contract took effect, or by Oct 24, 2021
- When the contract was signed, the government expected the 220km high-speed rail line to be operational by 2023 and to generate significant economic development along the route.
Summary
The state enterprise filed the lawsuit on Wednesday to exercise its rights under the contract for the project designed to link Don Mueang and Suvarnabhumi airports with U-tapao airport in Rayong, the SRT public relations department said.
The rail line was touted as a key component of the Eastern Economic Corridor development project.