Airport rail link partner denies contract exit amid dispute

Asia Era One, the consortium behind the high-speed rail project linking Thailand's Suvarnabhumi, Don Mueang, and U-Tapao airports, has refuted claims that it is canceling the venture. The company, led by CP Group, stated that a letter submitted to the State Railway of Thailand (SRT) was intended to protect its rights under the concession agreement, not signal an immediate withdrawal.

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The consortium stressed the notice should not be interpreted as an immediate withdrawal from, or termination of, the concession.

Clarifying recent reports, Asia Era One explained that some information circulating might misrepresent the project's status and the consortium's intentions. The company emphasized that the letter was a formal notification to the SRT about issues hindering the project's progress, adhering to procedures within the public-private partnership agreement. It stressed that this notice should not be construed as a termination of the concession.

Both parties have faced obstacles since the agreement was signed. Notably, a public drainage canal in the Makkasan area has complicated the development of the project's land. Discussions to resolve this and other issues, including significant shifts in economic, financial, and investment conditions since the contract's inception, are ongoing. These evolving circumstances necessitate a review of proposed amendments to the concession agreement by state agencies, impacting the project's readiness.

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Asia Era One president Sarit Jinnasith said the consortium remained confident all parties could reach an outcome benefiting the country, the public and stakeholders.

Furthermore, the consortium's application for Board of Investment (BOI) privileges, approved in principle in 2022, saw its investment promotion certificate expire last year. A new application requires greater certainty regarding revised project conditions. Asia Era One president Sarit Jinnasith expressed confidence that a mutually beneficial outcome could be reached. However, SRT governor Anan Phonimdaeng previously stated that the consortium's letter invoked its right to terminate the contract due to unmet conditions for a notice to proceed.

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On Thursday, SRT governor Anan Phonimdaeng said the consortium's July 6 letter sought to invoke its right to terminate the contract because conditions required to issue a notice to proceed could not be met.