CP Threatens To Withdraw From High-Speed Rail Airport Project
CP Group has requested to withdraw from Thailand's 224.5 billion baht high-speed rail project connecting three Bangkok airports, citing a missing Board of Investment certificate after contract amendment negotiations failed.
Thailand's State Railway Authority (SRT) director Anon Pothimankaew announced that Asia Arawan Limited (CP Group), the concessionaire for the three-airport high-speed rail project connecting Don Mueang, Suvarnabhumi, and U-Tapao over 220 kilometers with a budget of 224.544 billion baht, submitted a letter on July 6, 2025 requesting to exercise its right to terminate the joint venture agreement under clause 6.2.
The SRT informed the SRT Board, chaired by Highway Department Director Piyapong Chiwatakul, on July 9, 2025, instructing legal teams to clarify relevant details and report back to the board. The board also acknowledged two proposed solutions discussed between the SRT, the Office of Special Economic Zone Committee for Eastern Region Development (EECB), and Asia Arawan Limited on June 24, 2025.
The two approaches are: 1) Amend the contract according to previous EECB board resolutions from the 4th meeting of 2567 and 1st meeting of 2568. The SRT has negotiated and drafted the new agreement, approved by the Office of the Attorney General, awaiting EECB and Cabinet approval. 2) If option one fails, proceed with contract termination, which the private sector formally requested on July 6, 2025.
Anon explained that clause 6.2 termination requires three conditions: failure to deliver project land, failure to deliver supporting Transit-Oriented Development (TOD) areas at Makkasan and Si Racha stations, or failure to obtain the Board of Investment (BOI) promotional certificate. The SRT has completed land and TOD delivery. The remaining issue is the BOI certificate. Previously, the private sector agreed to waive BOI conditions in exchange for amending the contract to include "Build-Operate-Transfer" terms. Since the amendment cannot be approved, the private company is seeking termination over the BOI issue.
The joint venture agreement specifies four contract termination scenarios: expiration of project term, termination under clause 6.2, breach termination under clause 30.2 (by either party or due to public interest), or termination due to force majeure. Regarding infrastructure overlap with the Thailand-China railway contract 4-1 (Bang Sue-Don Mueang), CP Group confirmed it cannot construct that section, so the SRT will proceed with construction itself, already approved by the SRT Board and to be presented to the EECB and Cabinet.
Concerning the Memorandum of Understanding between the SRT and Asia Arawan regarding Airport Rail Link operations, set to expire September 30, 2025, Anon stated the SRT is exploring options and will discuss this in the project oversight committee meeting.
