High-speed rail project: contract will be changed within 2 weeks!

High-speed rail project: contract will be changed within 2 weeks!

What is happening with the high-speed rail project in Thailand? On November 3, 2025, the Eastern Economic Corridor Office (EECO) announced important progress on the rail system that will connect Don Mueang, Suvarnabhumi and U-Tapao airports. The project is worth a hefty 224 billion baht and is being implemented by the State Railway of Thailand (SRT) in collaboration with Asia Erawan Co. Ltd., part of CP Group. However, there are some hurdles to overcome.

The board has instructed the SRT to enter into discussions with the CP Group in order to clarify the problems of the Office of the Attorney General (OAG). A clear solution must be found within the next four months to ensure the project runs smoothly. Particularly critical are the OAG's 18 observations, six of which have legal implications and must be clarified before contractual changes are made. The main problem lies in a guarantee amount of 120 billion baht, which private sector and bank stakeholders consider critical. These concerns relate to the revised contractual clause on the bank guarantee.

Treaty revisions on the agenda

As The Thaiger reports, Finance Minister Pichai Chunhavajira will submit the changes to the high-speed rail project contract to the Cabinet within the next two weeks. Pichai, who is also chairman of the Eastern Economic Corridor (EEC) Policy Committee, has already approved adjustments to five critical points in the contract. These changes are intended to ensure that the project remains financially and operationally viable.

A key aspect of the planned changes concerns the payment model: Instead of a one-off final payment, a progressive model is being sought in which the government can pay a maximum of 120 billion baht in installments, depending on the progress of construction work. At the same time, private operators must provide 160 billion baht in guarantees to ensure the timely completion and commissioning of the high-speed railway.

Infrastructure as a driver for growth

But it's not just high-speed rail that's on the agenda. The Ministry of Transport plans a major investment in the country's infrastructure worth 652 billion baht, about $18.3 billion. This initiative aims to transform the Thai economy into a technology and innovation-driven high-value economy. Sustainability also plays a central role, as highlighted in the report by Expeditors.

Last year, 95 out of a total of 152 transport projects are scheduled to start, aiming to improve connectivity and increase the capacity of existing infrastructure. The planned expansion of the U-Tapao International Airport, which includes a new passenger terminal and a second runway, can serve as an example here. This will further improve connectivity to the Eastern Economic Corridor and is expected to boost economic activity and tourism in the region.

Efforts to improve infrastructure in Thailand are also reflected in the development of new digitalization measures aimed at not only optimizing traditional modes of transport, but also integrating modern technologies into the warehousing industry. The country is gradually becoming a significant player in the region when it comes to high-quality infrastructure and sustainable development.