Thailand's largest company CP Group signs 224.5b baht rail deal
[BANGKOK] A consortium led by Thailand's largest conglomerate CP Group on Thursday signed a 224.5 billion baht (S$10.1 billion) billion deal to build a high-speed railway connecting three airports, the spine of an infrastructure scheme set to transform the southern coast into a tech hub.
A who's who of the country's business and political elite took part in the signing, including construction billionaire-turned-health minister Anutin Charnvirakul, Prime Minister Prayut Chan-O-Cha and CP Group's CEO Suphachai Chearavanont.
His family is Thailand's richest thanks to its Charoen Pokphand Group - a conglomerate which spans food and telecoms - and its patriarch Dhanin is worth an estimated US$17.6 billion according to Forbes.
Construction magnate Premchai Karnasuta, who was convicted on poaching charges after he was found with a black leopard pelt, is also part of the consortium building the 220km line.
It will shuttle passengers from Bangkok's Suvarnabhumi and Don Muang international airports to a third one near the southeast resort city of Pattaya in under an hour.
The high-speed line will also serve as a link to the Eastern Economic Corridor (EEC), an ambitious US$50 billion scheme seeking to attract investment from industries like auto and tech manufacturing.
"It will make the EEC become the extended part of the capital so it is very important for the people and the investors coming in," Mr Suphachai said, adding it was expected to be completed in five years.
Construction will begin in 12 to 24 months and the government is footing 65 per cent of the 224.5 billion baht deal.
"This (project) is the toughest part because the government is paying money from the budget.... we don't want to spend it wastefully," said EEC secretary general Kanit Sangsubhan.
Officials from the Chinese, Italian and Japanese embassies also attended the signing, as China's Railway Construction Corporation and Japan's Bank for International Cooperation are part of the consortium.
Chinese embassy officials say it will play a key role in Beijing's massive Belt and Road initiative.
"It will run through the key economic zones in Thailand and the Chinese company is willing to share technology and equipment," ambassador Lyu Jian told AFP.
But critics say the deal, partially funded by taxpayers via the national budget, was ushered in by an army-led junta regime linked to business interests.
But Mr Suphachai rubbished criticism of a lack of transparency.
"It took almost a year to negotiate and there was also competition (in the auction)" he told AFP.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Volkswagen to keep China market share stable as price war rages
COE quota for May-July up 2.7%; passenger car categories rise despite less cut-and-fill
Tesla profits tumble but shares rise on new vehicle plan
Volvo Cars see good demand this year after higher Q1 unit sales
Capital A chief Fernandes defers retirement, renews contract for five years
Victims’ families to urge US prosecute Boeing over fatal crashes