CP Group has sent another letter reaffirming its request for the termination of the three-airport high-speed rail contract. Deputy Transport Minister Siripong Angkasakulkiat has urged all sides to settle the outstanding issues before September 30.
The railway is designed to link Don Mueang, Suvarnabhumi and U-Tapao airports. The private consortium behind it is Asia Era One Co. Ltd., a group led by CP Group. Siripong discussed the situation with State Railway of Thailand governor Anan Phonimdaeng on August 26.
Siripong said the operator cannot walk away from the deal on its own at this stage. Under the law and the partnership agreement, he said, a one-sided termination by the private side carries no legal effect yet.
He set out four conditions under which the contract can be ended. That being: mutual consent, termination by implication, a court order, or termination initiated by the government. Settling the matter was needed to keep services running for the public and to protect the state’s interests, he said.
The State Railway of Thailand scheduled further negotiations with the consortium for August 27. Siripong said those talks were to cover train operations and a reduction in the scope of work. The results would then be compiled and sent to the Eastern Economic Corridor Policy Committee, known as the EEC Board, he said.
The consortium wants the contract amended to a build-as-you-pay model, instead of payment falling due after construction is finished. A separate problem concerns work that overlaps with the Thai-Chinese high-speed rail project, under Contract 4-1 covering Bang Sue Grand Station to Don Mueang.
Siripong said the courts are the fallback if the two sides cannot agree. Legal and civil proceedings would then decide which party is responsible for any damages, he said, and that process could take a considerable amount of time.
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The story CP Group presses again for three-airport rail contract termination as seen on Thaiger News.
