The State Railway of Thailand (SRT) board has agreed to extend a land lease contract with Centara Grand Beach Resort & Villas Hua Hin for another year pending talks over a contract renewal, said SRT governor Worawut Mala.
He said the SRT is drafting new lease regulations in line with the 2019 Joint State and Private Investment Act before holding talks with the company over a new deal on its 71-rai land.
Negotiations are expected to wrap up by September this year.
According to Mr Worawut, the new lease will reflect the current market price and bolster the agency's revenues.
The law came into effect on March 10, paving the way for the SRT to lease its land to developers instead of relying on public-private partnership deals.
Centara Grand Beach Resort & Villas Hua Hin has run the seaside resort in Hua Hin district in Prachuap Khiri Khan for 30 years on prime land leased by the SRT.
The concession expired on May 15.
A source at the SRT said the agency hired a consultant to assess the deal and it will renew the lease under condition that the company must invest about 3.2 billion baht in a commercial development project on the SRT's land plots. According to the source, the debt-ridden SRT expects to earn no less than 5.7 billion baht for a 30-year deal.