USD 7.4 billion high-speed rail project signed in Thailand

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USD 7.4 billion high-speed rail project signed in Thailand

PPP agreement to develop the High-Speed Rail Linking Three Airports (Don Mueang-Suvarnabhumi-U-Tapao) Project has been signed on 24 of October between State Railway of Thailand (SRT) and Eastern High-Speed Rail Linking Three Airports Co., Ltd. (Charoen Pokphand Holding and strategic alliances).

The High-speed Rail Linking Three Airports Project connects three important airports in Thailand - Don Mueang Airport, Suvarnabhumi Airport and U-Tapao Airport. The project covers a total distance of 220 kilometers. The train can reach a maximum speed of 250 kilometers per hour. The journey from Bangkok to U-Tapao airport will take 45 minutes, compared to 2-3 hours by car.

The PPP contract term will be 50 years, including five years of construction and 45 years of operation and maintenance. The completion of the project is scheduled for 2023.

This is the first time the Royal Thai Government developed the high-speed rail project under the public-private partnership program with PPP Net Cost of THB 224,54 million (USD 742 million). The country will get optimal interests from the concession agreement with the budget approved by the Cabinet of BHT 119,43 million (USD 395 million). As a result, the private sector proposed a budget of THB 117,23 million (USD 387 million). This helped to save the expense of up to TBH 2,200 million (USD 72 million) under the 50-year PPP agreement. Furthermore, all assets will be state ownership at the end of the agreement.

CP Group collaborated with joint venture partners, namely China Railway Construction Corp. Ltd. from the People's Republic of China, Bangkok Expressway and Metro Plc., Italian-Thai Development PCL, and CH Karnchang PCL to establish the "Eastern High-Speed Rail Linking Three Airports Co., Ltd.” as an agent to sign the PPP agreement. After signing this agreement, he will accelerate the management of Eastern High-Speed Rail Linking Three Airports Co., Ltd. to conduct field exploration and design, negotiate with contractors and suppliers, as well as speed up the construction plan and project implementation immediately.

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