EEC sees three-airport high-speed rail at risk ahead of board review

Thailand’s high-speed rail project linking Don Mueang, Suvarnabhumi and U-Tapao airports faces possible collapse after its private partner sought to terminate its contract and financial institutions declined to provide funding, according to the Eastern Economic Corridor Office (EECO).

Chula Sukmanop, secretary-general of the EECO, acknowledged on Monday (October 26) that the original project would be extremely difficult to deliver because circumstances had changed considerably and financial feasibility studies had raised serious concerns about its commercial viability.

The project, developed under a public-private partnership (PPP) agreement, has also become entangled in contractual disputes involving the CP Group-linked private concessionaire and the State Railway of Thailand (SRT).

Chula explained that the high-speed rail project had not been discussed at Monday's meeting of the Eastern Economic Corridor (EEC) Policy Committee, chaired by Prime Minister Anutin Charnvirakul.

However, Anutin instructed officials to prepare the matter for consideration at the committee's next meeting in November.

It remains uncertain whether a final decision on the project's future can be reached at that meeting.

Because the railway was developed under a PPP agreement governed by EEC legislation, any decision to terminate or restructure the contract must undergo careful legal examination.

Financial feasibility assessments have indicated that the original investment model is no longer commercially viable, discouraging banks from providing loans.

Although the Office of the Attorney General has reviewed the proposed contractual amendments and determined that changes would be legally permissible, Chula stressed that revising the agreement would not resolve the fundamental financing problem.

Without financial backing, the project could not proceed even if the contractual amendments were approved.