‘Billions in savings’ thanks to high-speed rail deal
The State Railway of Thailand (SRT) said it would now be able to save billions of baht in additional costs in running a high-speed train project linking Don Mueang, Suvarnabhumi and U airports. -tapao.
SRT said this was possible thanks to the concessionaire, Asia Era One, agreeing to modify the construction contract and assume the costs.
The SRT expects to save up to 27 billion baht, SRT Governor Nirut Maneephan said.
Some 9.2 billion baht of that figure is needed to fund the construction of a high-speed rail structure that the project shares with the China-Thai high-speed rail project, he said.
SRT also plans to save billions of baht in interest that would have had to be paid had it not agreed to start reimbursing project construction costs to Asia Era One from the 21st month instead of the 25th month as agreed in the first contract and shorten the repayment period from 10 years to seven years, he said.
The early repayment and shorter repayment period were agreed as part of Asia Era One’s deal to take on the 9.2 billion baht construction of the shared rail structure, he said.
Asia Era One, formerly known as Eastern High-Speed Rail Linking Three Airports Co, is the CP-led consortium that won the tender to build a high-speed rail linking three airports .
The deal between SRT and Asia Era One is expected to be approved by the government’s Eastern Economic Corridor (EEC) policy committee and then approved by the cabinet by the end of this month, he said.
The high-speed rail system linking the three airports is one of the main flagship UNECE infrastructure projects.
Also as part of the agreement, Asia Era One and SRT signed a memorandum of understanding in which the two parties agreed to work together to find a solution to Asia Era One’s outstanding payment of 10.6 billion baht for the so called joint venture fee. it was supposed to have been done on October 24th.