CP Move On Airports Link High Speed Train Project Request Time
21-3-2019-“CP” requested time to clear the low interest rate loan to reduce the investment risk of Three Airports Rail Link High-Speed Trains Systems Project .
The selecting committee of the project provides time for CP to confirm the answers to The meeting on the coming March 25. Mr.Worawut SRT acting governor unvelided good tendency that CP sounds more relaxed on the conditions outside the RFP(Request For Proposal), confirmed 50 years term concessions in contract condition, expected to conclude negotiations before Songkran Festival.
Mr. Worawut Mala, Deputy Governor, Property Management Business Group Acting Governor of the State Railway of Thailand (SRT) revealed after the meeting of the Sub-Committee Selecting Private Invester to invest in the High-Speed Railway Connecting The Three Airports project (Don Mueang-Suvarnabhumi-U-Taphao Airport), a distance of 220 km. with the investment worth about 225 Billion baht that the negotiation with the joint venture Charoen Pokphand Holding Company Limited (CP) in the latest overview has good prospect, CP asked for a little more time to negotiate with partners and willl inform to SRT for the conclusions on Monday, March 25, them the private investment selection sub- committee will have meeting on March 28 to negotiate with CP. If there is no accident, expect to be able to summarize the results of all negotiations before Songkran and propose to the Cabinet (Cabinet) to approve further on.
With 12 issues outside the proposal framework (RFP) and apart from the cabinet resolution (cabinet) divided into 3 groups, the first group is the preliminary conditions, which CP has already understood that it is misunderstanding in the sense that does not have any commitments, such as the concession contract term still remain in the framework of 50 years, just request to open for negotiation to renew the contract after 50 years term end. In the case of stupulating 99 years means that the state needs CP to be ready to negotiate to extend the concession contract term which must be adjusted clearly.
Group 2 Financial matters which involves about 3-4 items. CP asks to negotiate a little more with a partner to get a low interest rate loan to lower the financial cost, so that the project risk will be reduced.CP requested additional time because it is related to the three governments, namely Thailand, China, Japan, while CP’s said the trend is good and it is in the final step and the conclusion of the negotiations will be end no later than this week or the beginning of next week.
Group 3 is about the wording used in the contract that are too specific which will be discussed to adjust the words clearly, not using the word “state must …
such as the matter that CP wants to open a dialogue in case of there is any unexpected problem occure to effect
the project after the construction was start o in case that the state doing a competing project which is unlikely to make another high-speed train to Rayong because the passenger volume is not worth having two projects, etc. including the issue of moving the station Making spurs.
“Today considered CP more relax in the conditions that The state cannot accept to a certain extent but it has not finished because there are financial issues that CP must first negotiate with the source of funds. Both interest rates and conditions If the end of the financial issue is relaxed, other conditions would be also relax and making the overall picture of negotiations with the selection committee to be able to continue without being dismal CP must withdraw the proposal outside the entire RFP, while the contract negotiation were 70-80% in progress. “said Worawut.
Mr. Worawut said CP asked about the clarity because the partners are concerned about the political change in Thailand and afraid that it will affect the project like in the case of the cancellation of the high-speed railway project in Malaysia after the political change, Which has confirmed that Thailand has a high and strong fiscal discipline which Mr. Somkid Jatusripitak Deputy Prime Minister emphasized that the Ministry of Finance maintains strict fiscal discipline and now there is aldo the negotiation for the implementation of the high-speed rail project between Thailand-China, so this is not just an only project under negotiation.
