Thailand’s $7 billion airport rail project gets going despite controversy

Thailand's plans for a $ 7.4 billion high-speed rail connection plan from Bangkok to the tourist city of Bangkok went on Thursday after negotiations exposed for months of public crime.

The Thai government said Thursday it has agreed to begin construction with a consortium led by the giant Charoen Pokphand (CP) Group, including China's railway construction project.

Operating until 2013

Some Japanese banks have also agreed to provide some of the funding for the links, which will reach 220 km and will be operational in 2023.

The government has approved an investment of 112 billion baht and the private sector will invest 177.1 billion baht.

After the 50-year project period, all assets are transferred to the government.

Other terms of the agreement were not disclosed.

The former military government of Thailand has selected CP Group and 12 other companies for this project. They negotiated with state agencies after the new government came to power after the end of the elections in March, but there were disputes about land transfer and risk distribution.

In early October, Deputy Prime Minister Anutin Charnvirankul, head of the transportation portfolio, closed a signing agreement to start construction, threatening not to blacklist the CP consortium.

Investment and employment

CP Chairman and Thailand's richest Dhanin Chearavanont criticized the government's approach to the project in a dispute with Anutin due to the delay in signing the contract.

However, the CP said it would sign the contract early October 24 as the deadline is closed.

The project connects Bangkok's major airport Suvarnabhumi to Don Muang Airport (another airport in Bangkok used by cheap airlines) and U-Tapao Airport in Pattaya, allowing trains to run at speeds of up to 250 kilometers per hour. do.

"The project will have more than 200 billion baht of investment and employment in total," Anutin added that Facebook will attract more investment in Thailand.

Source: Reuters