However, as the state has not accepted this condition, the private sector is obliged to pay 100% under the original contract.
The private sector has accumulated arrears to SRT of about THB300 million a year, from the time it began management on Monday (October 25, 2021) to the present.
Anan said that, for the next steps, SRT was preparing to open formal negotiations with the private sector this May to ask clearly whether it would be able to proceed if all terms reverted to the original contract and original conditions.
The private sector has throughout tried to drive the project forward, whether by increasing its shareholding ratio or making various preparations.
Ultimately, however, everything must comply with existing regulations and laws.
“If the private sector confirms that it cannot bear the original conditions, this could lead to a contract-termination process. SRT acknowledges that it has considered a contingency plan, giving priority first to points affecting other structures, such as connection points with the Thai-Chinese railway project or structures at U-Tapao Airport,” Anan said.
However, if the situation deteriorates to the point where a new bidding process must be started, Anan said this would become a major loss in terms of time.
He expected it would delay the project by 8-10 years from the original plan, because a new bidding process would take at least 2-3 years, and construction would take another roughly five and a half to six years.
The possibility of calling in the second-ranked bidder for further negotiations is almost impossible, as the bid bond and bid validity period are likely to have expired long ago, meaning the process would have to start again from zero.
On SRT’s side, although it is ready in terms of land, with almost all expropriation complete, and the original environmental impact assessment (EIA) report can still be used if there is no significant design change, starting again under procurement law and finding a new contractor remains a time-consuming obstacle.
In addition, SRT has prepared fully for work in areas concerning it, particularly civil works and the resolution of overlapping points with the suburban Red Line extension, for which designs have been completed.
“The decisive factor now rests with the decision of the private contractual partner on whether it will accept the Cabinet’s original conditions. SRT hopes the talks that will take place soon will find a conclusion so the project will not have to stall and create additional cost burdens for the state and the public in the future,” Anan said.
