EEC Secretary-General clarified the progress of high-speed rail linking 3 airports, revealing that the SRT has already delivered 98% of the construction site to “Asia-Era One”. The private sector does not need to rush to recover the bank. Pointing out the issue of transferring the right to “Airport Rail Link” waiting for 3 months does not affect the use of public services
On October 26, 2021, the Eastern Economic Corridor Policy Office (EEC) or EEC reports the progress of investment in the high-speed rail project connecting 3 airports by Mr. Kanit Sangsuphan, Secretary-General of the Special Development Zone Policy Committee. Eastern region, Mr. Worawut Mala, Advisor for High-Speed Rail Project and TOD, and Mr. Suchit Chaosirikul, Deputy Governor of Railway Management Group and Acting Operations Group State Railway of Thailand (SRT)
Mr. Kanit Sangsuphan, secretary-general of the Eastern Economic Corridor Policy Committee, said the high-speed rail linking 3 airports has continued to progress. It is not yet time for the private sector to get credit for the high-speed rail linking 3 airports (the project), but there has been ongoing progress as scheduled.
Meanwhile, the State Railway of Thailand (SRT) has handed over 98.11% of the ready-to-construction area of the Suvarnabhumi to U-Tapao project to Asia Era One Company Limited (private contracting party) for 98.11 percent, with a distance of about 160 kilometers, or an area of 3,513 rai. 1 ngan 3 square wa, which the private sector contract has gradually started to prepare for construction since the end of 2020
comprising the construction of roads and temporary bridges of the project Construction of a foundry for railroad track parts Construction of worker housing by SRT will deliver the remaining 1.89% of the area within January 2022 and when the contracted private sector has completed the inspection of the area, SRT will issue an official notice to commence construction work (Notice to Proceed, NTP), expected around March 2022.
Therefore, at present, it is not yet a step that the contracting party has to obtain a loan from a financial institution. Because the joint investment contract stipulates that the private sector contracts to enter into a project credit agreement with a financial institution. (or the financing contract for the project) within 240 days from the date the SRT issues NTP. Therefore, the loan process will be completed around November 2022.
“The money that the private sector will borrow from the bank is the construction from Suvarnabhumi Station to U-Tapao. which as far as I know is You don’t have to rush to request a bank right now. And before requesting is in November 2022, a loan of about a hundred thousand million baht is required. It is the construction budget from Lat Krabang to U-Tapao,” Mr. Kanit said.
Inform the private sector to invest 3 billion to add trains, airport rail links
In the case of airport rail links, confirm that people come first. every step is transparent The state does not benefit and fair to the private sector
As for the private case, accepting the airport link operation It appears that the situation of covid has reduced passengers from about 7-8 thousand people / day to only 1-2 thousand people / day, which is an unforeseen force majeure event, which SRT has always suffered losses. and requires the transfer of the scheduled action. therefore do not prepare a budget in advance
Therefore, the Eastern Economic Corridor Policy Committee (AEC) has given a policy to find a solution without affecting the passengers.
For this reason, on October 20, 2021, SRT and the private parties therefore signed a memorandum of agreement to manage the joint venture contract in solving the project due to the impact of COVID-19 To allow the private sector to operate the Airport Rail Link and provide continuous service The details are as follows.
- The private sector has taken the Airport Link operation since October 24, 2021 as scheduled.
- The contracting party is responsible for all expenses including all operating personnel. Take responsibility for all risks that may arise from the performance of the assignments. and any other action To make the train operation and maintenance of the airport system The rail link is in accordance with the standard indicators or KPIs set by the SRT, which before taking over the private operation has invested more than 1,100 million baht in the improvement of the system. and airport rail link services and continuous training of operators Since the signing of the joint investment contract, there is a technical and personnel readiness.
- SRT is also a fare collector. Do not immediately transfer income to the private sector but will transfer it once the problem is solved. In this regard, the private sector will use the said fare to deduct expenses incurred. If profits must be returned to SRT, SRT will no longer have to bear losses from the Airport Rail Link, which is approximately 600 million baht in 2021.
- On the date of signing the memorandum The contracting party made payment of 1,067.11 million baht or 10% of the right to invest in the airport. Rail link of 10,671.09 million baht to SRT as a guarantee that it will operate strictly according to the memorandum.
- This Memorandum of Understanding has a term of 3 months. whereby the state must not lose its benefits and fair to the private sector The negotiations will be carried out by the working group. appointed by SRT and the supervisory committee to present the SRT, the PEA and the Cabinet next
In this regard, the private sector has taken action According to the memorandum of agreement dated October 25, 2021 and the operation is smooth. did not find any obstacles In serving the people, the SRT has sent officers to closely supervise.
At the same time, the private sector has proposed an investment in airport rail link development in the amount of not less than 3,000 million baht to provide additional trains to facilitate the people. without the benefit of the state and the private sector is treated fairly
“The airport rail link transfer has set a target of no more than 3 months and thinks it can be done quickly. And it’s the skill that the government opens the country to show when the covid pressure will end. and will return to normal. Since the end of 2020, we have been working together.
“In the beginning, I heard Read the proposal and think that Covid will end at the beginning of the year (2020) and think that there is no need to heal. until the private sector sends the letter to the official in writing In May 2021 that it was really affected. We therefore made the matter to the EEC committee as proposed by the private sector.
“The EEC committee has 14 ministries, so bringing the matter has to be considered by many parties. Now, I would like to postpone the payment of 10 billion baht. However, the private sector has already paid 10% in advance.” Mr. Kanit said
Take the “EEC” as an example to draw money from the private sector to save the state’s budget.
Mr. Kanit also stated that public and private investments in the EEC lead to a model for budget-saving states. Pull private money to develop large infrastructure countries in the EEC and be an example of public-private partnership. to save budget and bring private capital to participate in the development of the country
The joint venture is that both parties, the state and the private sector, come together. “Take risks together” by the private sector to invest capital as well Unlike government procurement that the private sector hired by the government in which the state invests all private wages and the state assumes the risk solely In the event of unforeseen force majeure events before the signing of the contract This can be seen from the government extending the delivery time and waiving the fines in general government procurement contracts for contractors in the event of Covid-19.
in joint ventures between the state and the private sector therefore it is necessary “Common understanding” is the basis for negotiating a solution in the event of unforeseen force majeure. and lead to the amendment of the contract under the mutual understanding that the project will be successful without any disadvantage between the state and the private sector
The case of COVID-19, which may be an unforeseen force majeure event Because the government has issued measures requiring businesses and people to stop traveling periodically. To reduce the risk of the spread of COVID-19 As a result, the number of airport rail link passengers has dropped considerably, leading to a fair “negotiation to find the best solution” without any disadvantage.
However, in the case of other joint venture projects in the EEC, it is not necessary to lead to a solution process such as the case of Airport Link because the Map Ta Phut Port Project and U-Tapao Airport Eastern Aviation City about to start construction It is expected that when the construction is completed in 4 years and the impact of the covids will be gone. As for the Laem Chabang Port project that is about to be signed, these impacts have been considered in the contract.
