Cabinet approves green light to solve electric train problem connecting 3 airports, relax concession payment hopes that the private sector will continue to build electric trains
Mr. Anucha Burapachaisri Deputy Secretary-General to the Prime Minister for Political Affairs Acting as a spokesman for the Prime Minister's Office, said that at the Cabinet meeting Acknowledge the plan to solve the high-speed rail project connecting 3 airports as approved by the Eastern Economic Corridor Policy Committee (EEC) by solving the problem of royalties payment for the Airport Rail Link project from the cattle problem. COVID-19 until the severe impact on the financial status of the project Originally, the private party to the contract had to pay ARL royalties in the amount of 10,671 million baht and send it to the SRT within 2 years after signing the joint venture agreement. ARL royalties must be paid in the amount of 10,671.09 million baht, including interest of 1,060 million baht, totaling 11,731 million baht.
by dividing the payment of the ARL royalties into 7 installments, namely installments 1-6 in the amount of 1,067.11 million baht each, and the 7th installment in the amount of 5,328.47 million baht within October 24 of each year. The private party will be responsible for the fee. interest and financial expenses in excess of which the SRT has to pay to financial institutions and the Ministry of Finance Is an amount greater than the amount that the SRT has received from the private party to the contract After adjusting the payment method In the event that the private party fails to pay the ARL royalties as specified without reasonable cause It will be considered as a material breach of the contract and the SRT will enforce its rights under the PPP Agreement. If the private counterparty receives ARL fare revenue higher than the estimation, the SRT has the right to negotiate for the private counterparty to pay the ARL royalties faster. If the problem is not resolved, it may affect the service. Operations and maintenance of the ARL had to be halted. and resulted in the confidence of the project to financial institutions also decreased.
for resolving events that severely affect the project's financial status, such as epidemics or dangerous communicable diseases that affect the economy and tourism without having to amend the investment contract Therefore, in order to be able to resolve similar problems that may arise in the future. with the contract management process without having to amend the investment contract Therefore, it is necessary to increase the contract management guidelines to deal with force majeure and leniency events, especially those that affect the status. project finance Cooperation between the SRT and the private sector on how to remedy such as extending the project period and adjusting the conditions that the private sector Must pay benefits to the state to support and solve financial problems of the project. still has rights and obligations under the joint venture agreement In this regard, the benefits that will be obtained from solving the problem of the project will allow the service of the ARL Project to be operated continuously by the private contract party. be able to pay the ARL royalties to receive the right to continue operating the ARL Project and will have a mechanism for managing the contract in order to cope with leniency and force majeure events in the future, including events that severely affect the financial status of the Project; and the private sector, the parties to the contract for the project Able to achieve project objectives according to the joint venture agreement In the meeting of the Eastern Special Development Zone Policy Committee (EEC) No. 1/66 on March 1, 2023, chaired by General Prayut Chan-o-cha, Prime Minister and Minister of Defense, approved the principle of amendment. Problems of the high-speed rail project connecting 3 airports and to submit to the Cabinet for acknowledgment by prime minister There was an order to consider the rules and conditions carefully and completely.
Source: Thai News Agency