A dispute over Thailand’s flagship three-airport high-speed rail project has escalated, with the government warning that a private operator cannot simply walk away from a multi-billion-baht contract. The warning follows a bid by a CP Group-linked firm to terminate its role in the scheme connecting the country’s three main airports.
Prime Minister Anutin Charnvirakul said contracts with the government could not be cancelled easily, and that terminating such an agreement could carry serious legal and financial consequences.
The warning comes after Asia Era One, the CP Group-linked consortium behind the project, reaffirmed its request to exercise its right to end its role in the Airport Rail Link from September 30, 2026. The State Railway of Thailand (SRT) has been negotiating with the consortium in an effort to resolve the dispute and keep the service running.
Anutin said he had not yet received full details of the matter but would meet Chula Sukmanop, secretary-general of the Eastern Economic Corridor Policy Committee, next week to discuss the issue along with other matters involving the corridor.
Asked about the proposed end of Airport Rail Link operations on September 30, Anutin said the matter needed further discussion, adding that government contracts could not simply be cancelled.
He said it was usually the government that terminated contracts, rather than private firms seeking to exit them. Consequences for a company walking away could include blocklisting, being classified as a contractor that had abandoned its work, and liability for any resulting costs, he said.
Financial risk
Anutin also pointed to the financial exposure if the project had to be retendered after a contract ended.
“This is not something that can be done easily,” he said, adding that the government would first discuss the matter with the EEC secretary-general.
If a replacement contract cost more than the original, the party responsible for the termination could be required to cover the difference, under procurement regulations issued by the Prime Minister’s Office. Anutin noted that the SRT was itself a party to the agreement and, as a Transport Ministry agency, had to follow the same regulations.
The dispute centres on the High-Speed Rail Linking Three Airports project, a public-private partnership connecting Don Mueang, Suvarnabhumi and U-Tapao airports, and a cornerstone of the Eastern Economic Corridor.
Deputy Transport Minister Siripong Angkasakulkiat said recently that a unilateral termination by the private sector does not automatically take legal effect under the public-private partnership agreement. He said the contract could only end through mutual agreement, by implication, through a court order, or through government action.
Contingency plans
The SRT is preparing contingency plans in case Asia Era One stops running the Airport Rail Link after September 30. The SRT Electrified Train Company has been preparing to take over operations, though it would need time to arrange staff and other operational requirements.
The government is now under pressure to resolve the dispute while keeping the Airport Rail Link running for passengers and protecting the state’s interests.
The story Thai PM blocks CP’s exit from rail deal as seen on Thaiger News.
