Prime Minister Prayut Chan-o-cha has confirmed a number of Thailand's largest business groups including the Charoen Pokphand group (CP) and Thai Beverage Plc are interested in co-investing with the government in the high-speed rail routes linking Bangkok with tourist destinations.
Thai media quoted Arkhom Termpittayapaisith, secretary general of the National Economic and Social Development Board, as saying earlier that some Thai conglomerates were in talks as a group with the government to invest in the Bangkok-Hua Hin and Bangkok-Pattaya-Rayong routes.
In addition to the agribusiness conglomerate CP group and Chang brewer Thai Beverage, industrial estate operator Amata Corporation Plc, consumer products giant Saha Group and skytrain operator Bangkok Mass Transit System Plc were said to be interested.
Gen Prayut checks out the model of the tunnel's cross section.
"Talks are still in progress and they will team up [as a consortium]," Gen Prayut said.
Asked whether CP and ThaiBev could invest together since their businesses are so different, Gen Prayut said: "It doesn't matter. They can borrow. They don't use their own money. I don't know how many have joined [the consortium]. They'll borrow both locally and abroad and invest with the government.
"We'll then talk about the ratio: whether it's 70:30 or 50:50 investment or a share of benefits under the concession model. Since it takes hundreds of billions (of baht), they'll look for an appropriate offer. In any case, a conclusion must be reached this year," said Gen Prayut.
The 211-kilometre Bangkok-Hua Hin route requires an investment of 98.4 billion baht. It is in the process of seeking approval for the environment impact assessment (EIA). The 196km Bangkok-Pattaya-Rayong route, costing 152 billion, has just completed the EIA.
The premier on Monday launched the eastbound tunnel boring machine for the Tha Phra cut and cover tunnel, which will cross the Chao Phraya River. It is part of the Sanam Chai-Tha Phra extension of the Blue Line.
The 27km Blue line runs from Hua Lamphong-Bang Khae and Bang Sue-Tha Phra. Of the total length, 22km are elevated.
"The Blue Line will be completed by the third quarter of 2018 and the Purple Line will begin a trial run this year," Gen Prayut said.
The Blue Line mass transit route