EEC sees three-airport high-speed rail at risk ahead of board review

The proposed high-speed rail project in Thailand, structured as a public-private partnership (PPP), is in jeopardy following a reported termination request from the CP Group-linked private concessionaire and a lack of financial backing. Banks have reportedly declined to provide loans, citing serious concerns about the project's commercial viability and the original investment model.

Despite the private partner's notification, the State Railway of Thailand (SRT) has not formally accepted the termination, meaning the PPP concession remains legally binding. This situation has initiated dispute-resolution proceedings. EECO Secretary-General Chula Sukmanop noted that while the Office of the Attorney General has reviewed potential contractual amendments, such changes would not resolve the fundamental financing problem.

The Eastern Economic Corridor (EEC) Policy Committee, chaired by Prime Minister Anutin Charnvirakul, is scheduled to discuss the project's future in November, though a final decision is uncertain. Any formal termination or restructuring of the contract would require careful legal examination and approval from both the EEC Policy Committee and the Cabinet. The government retains the option to seize the contractual guarantee if clear evidence establishes state losses.

Should the current contract be formally terminated, the government would need to explore alternative development models. These could include direct public investment or a new PPP structure designed to make private-sector participation financially feasible. One possibility involves modifying the railway's technical specifications, such as reducing its operating speed from the originally planned 250 kilometers per hour to 160 kilometers per hour.