CP's airport link terms 'not set in stone'
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CP's airport link terms 'not set in stone'

The 50-year contract for the rail development linking three major airports has kept the door open for amendment requests by the concessionaire, according to the State Railway of Thailand (SRT).

A Charoen Pokphand-led consortium won the bidding to build a high-speed railway connecting Bangkok's Don Mueang airport, Samut Prakan's Suvarnabhumi airport and Rayong's U-Tapao airport.

The 220-billion-baht project is one of five megaprojects under the government's much-touted Eastern Economic Corridor (EEC). Kanit Sangsubhan, secretary-general of the EEC office, said earlier that the contract had been approved by the EEC Policy Committee.

SRT acting governor Worawut Mala said on Tuesday the contract will allow the concessionaire to request changes even after it is signed.

"We have to keep a channel open for contractual amendments so as to give fairness to the private sector and mitigate the risk of unexpected circumstances that could affect the state sector," said Mr Worawut.

Economic crises and wars are among acceptable reasons for amendments, but lower-than-expected revenue or passenger numbers are not, he said.

The concession period can only be extended in the event that the SRT hands over the land for the project later than scheduled, Mr Worawut added.

After an amendment request is raised, it will be forwarded to a committee overseeing the project for consideration. It will then be presented to relevant agencies, such as the Transport Ministry, and then to the policymakers.

Meanwhile, The loss-making SRT is set to present its rehabilitation plan to the State Enterprise Policy Commission, chaired by Prime Minister Prayut Chan-o-cha, today.

Mr Worawut said the SRT will also seek the commission's approval for the recruitment of 1,904 employees this year to serve the double-track railway projects.

The SRT will also seek the commission's approval for a 3.4-billion-baht budget for the registered capital to set up a subsidiary to manage the Red Line train project, he said.

The Red Line project is expected to break even in the next 13-14 years, he added.

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