The Government of Thailand signed with a consortium* led by Charoen Pokphand Group (CP) a Memorandum of Understanding for the construction of a fast railway line which will link three airports around Bangkok.
The PPP project covers a 220-km line which will connect the Don Mueang, Suvarnabhumi and U-Tapao airports. The line will start from Don Mueang Airport (serving greater Bangkok), heading for Bang Sue Grand Station, in Chatuchak, Bangkok, which is considered the future Thailand’s new railway hub. The train can reach a maximum speed of 250 kilometers per hour.
This is the first time the Royal Thai Government developed the high-speed rail project under the PPP method, with a total cost of USD 7.44 billion (Baht 224.54 billion). Thailand will get optimal interests from the concession agreement with the budget approved by the Cabinet of USD 3.96 billion (Baht 119.4 billion)
As a result, the private sector proposed the budget of USD 3.9 billion (Baht 117.2 billion). This helped to save expense of up to USD 73 million (Baht 2.2 billion) under the 50-year PPP agreement. All the assets will be state ownership at the end of the agreement.
The project has received funding from Japan Bank for International Cooperation and China Development Bank (CDB).
It is expected that the construction works will start within the next 12 months and the new line is scheduled to enter services in 2023.
*The consortium CP Group-led consortium comprises China Railway Construction Corp. Bangkok Expressway and Metro Plc, Italian-Thai Development PCL and CH Karnchang PCL. The companies will establish the “Eastern High-Speed Rail Linking Three Airports Co. which will conduct field exploration and design, negotiate with contractors and suppliers, as well as speed up the construction plan and project implementation.