SRT, CP race to ink rail deal

SRT, CP race to ink rail deal

Push to seal airport link before new govt

The contract signing for the high-speed rail project linking three major airports is expected to take place by the end of May before a change of government, a source at the State Railway of Thailand (SRT) said.

Under the time frame, the SRT expects to wrap up talks with the bid winner and get the project, valued at 224 billion baht, moving.

A consortium led by Charoen Pokphand Group (CP) submitted the lowest bid for the line linking Don Mueang airport in Bangkok with Suvarnabhumi in Samut Prakan and U-Tapao in Rayong.

But with several details to be finalised and the CP-led consortium still in talks with its financial partners, including the Japan Bank for International Cooperation, the deal is unlikely to be closed as quickly as originally planned, said the source.

The SRT and the consortium will meet tomorrow to continue talks postponed from March 28. The negotiations involve an additional set of 12 proposals for the 220-kilometre rail project from the CP-led consortium.

The source said negotiations will have to be concluded before a change of government. The Election Commission has until May 9 to endorse the election results, after which the House of Representatives will convene for the first time.

Acting SRT governor Worawut Mala said on Tuesday the upcoming talks may not reach a conclusion because every detail of the project must be examined and CP has to consult its business partners.

He said the talks will touch on several issues in the financial proposal and a few additional conditions submitted by the consortium, adding both sides had agreed on several issues in the previous talks.

One crucial point is that the consortium agreed the project would run under a 50-year concession, but it can be extended if the government feels that the consortium is running it effectively and responsibly.

"CP has said that it wasn't ready for the talks on March 28 because it has yet to discuss financial issues with its Chinese partner and others. That meeting was postponed until the afternoon of April 4," he said.

Asked if a change of government would affect the rail project -- the Pheu Thai Party announced it would review it if it headed the new coalition government -- Mr Worawut said the SRT is following through with its rail development master plan and the project is expected to proceed regardless.

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