NewsNational NewsThai High-Speed Rail Phase 1 Faces Delays and Contractor Issues

Thai High-Speed Rail Phase 1 Faces Delays and Contractor Issues

Deputy Minister of Transport, Surapong Piyachote, stated that the progress of the Phase 1 Bangkok-Nakhon Ratchasima high-speed rail project has been inconsistent across different contracts. While some agreements have advanced significantly, others have seen minimal progress, with liquidity issues among contractors being a significant obstacle. The ministry is establishing a task force to address these problems and coordinate efforts among the 14 contractors to ensure the project remains on schedule. The aim is to complete construction and begin operations by mid-2028.

Currently, two contracts have been completed, with ten under construction and two pending signatures. These include Contract 4-1, covering the Bang Sue-Don Mueang segment, and Contract 4-5, for the Ban Pho-Phra Kaew section. The delay in the Bang Sue-Don Mueang contract is due to overlap with the high-speed rail project linking three airports (Don Mueang, Suvarnabhumi, and U-Tapao). Meanwhile, Contract 4-5, awarded to Boonchai Panich (1979) Co., Ltd., is awaiting final approval due to concerns over the station’s proximity to the Ayutthaya Historic City, a UNESCO World Heritage site. The cultural heritage impact assessment (HIA) is still under review, with the station design’s potential effects on the heritage site being closely scrutinized.

The Ayutthaya station proposal has been forwarded to the United Nations Educational, Scientific and Cultural Organization (UNESCO) for consideration. Initial checks suggest that UNESCO has no objections but has requested further clarification. Surapong noted that a lack of response from relevant agencies in the past had prompted UNESCO to express concerns, leading to a formal inquiry. The State Railway of Thailand (SRT) has now provided the requested information, and the deputy minister is confident that the station’s construction will not violate World Heritage guidelines. Efforts to alleviate concerns have been made by reducing the height of the station and ensuring its location remains within the existing railway corridor.

Surapong emphasized that, regardless of the HIA’s outcome, the Ayutthaya station will proceed. Altering the planned route would result in significant additional costs and delays of up to a decade. He reaffirmed that the Thailand-China high-speed rail project must include Ayutthaya as a station, with SRT expected to sign the contract with contractors by October 2024, following the government’s policy announcement to parliament. The prime minister will be briefed on the Ministry of Transport’s plans to move forward with the project.

Regarding Contract 2.3, which involves railway systems, electrical work, mechanical systems, procurement of trainsets, and personnel training, valued at 50.6 billion baht, progress has been slower than anticipated. The installation of signaling systems will only commence once all construction is completed. The government is also considering whether the operation of both phases of the project should be managed as a public-private partnership (PPP). The SRT is expected to conclude its study by March 2025, with a budget allocation of no more than 10 million baht.

Phase 2 of the Thailand-China railway, covering the Nakhon Ratchasima-Nong Khai section (357.12 kilometers), with a budget of 341 billion baht, is awaiting further action. Delays occurred due to the caretaker government’s limitations, but after the policy announcement to parliament in September, the matter will be forwarded to the Secretariat of the Cabinet for review. It is expected to be submitted to the cabinet for approval by October, with bids for construction anticipated by the end of 2024.

It was reported that overall, the high-speed rail project, covering 357 kilometers and costing 140 billion baht, began construction in 2017 and is currently 35.74% complete, though delayed by 31.04%. While some contracts have seen 70-80% progress, others remain below 10%. Contract 4-5, valued at 10.325 billion baht, is expected to receive a notice to proceed (NTP) within two months of its October 2024 signing, allowing construction to begin by the end of that year.

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