Mr. Kanit Sangsuphan, secretary-general of the Eastern Economic Corridor Policy Committee (EEC) or EEC, revealed the progress of the high-speed rail project connecting 3 airports (Don Mueang, Suvarnabhumi, U-Tapao), which is one of the structural development projects. Fundamentally important (EEC Project list) that the current progress. and has continued in various fields with the following important details: 1. The high-speed rail linking three airports continues to progress. It is not yet time for the private sector to obtain credit for the high-speed rail project connecting three airports with continuous progress as scheduled. The State Railway of Thailand (SRT) has delivered the ready-to-construction area of the Suvarnabhumi to U-Tapao project. Asia Erawan Company Limited (private contracting party) is 98.11 percent, with a distance of approximately 160 kilometers, or an area of 3,513 rai 1 ngan 3 square wa, which the contracting private sector has gradually started to prepare for construction since the end of 2020, comprising the construction of temporary roads and bridges. of the project Construction of a foundry for railroad track parts Construction of worker housing, by which 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.
However, 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.
2. Airport Rail Link, people come first every step is transparent The state does not benefit and fair to the private sector In the case of the private sector 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 the transfer of operations is required as scheduled, therefore no budget is prepared in advance. Therefore, the Eastern Special Development Zone Policy Committee (PEA) has given a policy to find a solution without affecting the passenger public on October 20, 2021, SRT and the private sector contract. 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 private sector 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 complies with the standard scorecards or KPIs set by the SRT. Prior to taking the operation, the private sector has invested more than 1,100 million baht in system improvements and airport rail link services and training. Employees have been operating continuously. since the signing of the joint venture contract Therefore, there are technical and personnel readiness.
For the 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 not 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. The memorandum of understanding has a period of 3 months, which is a negotiation to find a solution together. The state must not lose benefits and be 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 Council of Ministers.”
However, 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 officials 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 procure additional trains to facilitate convenience to the people without the benefit of the state and the private sector is treated fairly
3. Public-private investment in the EEC to become a model of budget-saving state Bringing private money to develop the country The large infrastructure in the EEC is ready as 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 government assumes the risk solely in the event of unforeseen force majeure before the contract is signed, as can be seen from the government extending the delivery time and waiving the fines in the general government procurement contracts. Contractors in the time of COVID-19
in a joint venture 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
In 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 the problem solving process such as the Airport Link case 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, 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.
