16 November, 2018
Four Chinese firms have joined a consortium led by Charoen Pokphand Group (CP Group) to bid for Thailand's $6.8 billion high-speed railway project linking three airports.
The project was approved by government in March and will create 191 kilometres of new high speed rail to connect Suvarnabhumi, Don Mueang and U-Tapao airports. It will use 29km of existing rail.
The 225bn baht ($6.8bn) rail project will shorten the travel time between Bangkok and the Eastern Economic Corridor (EEC).
Two consortiums involving 31 firms bid for the project, BSR Joint Venture and the CP-led consortium.
"CP Group and its business allies that formed a consortium and strategic partners include Charoen Pokphand Holding and China Railway Construction Corp Ltd," said CP Group’s Special Projects Development Office vice chairman Adiruth Thothaveesansuk.
According to the statement, the global consortium also includes China's CITIC Group Corp, China Resource (Holdings) Co. Ltd., China’s CRRC-Sifang, Bangkok Expressway and Metro PCL, Italian-Thai Development PCL, Thailand's CH. Karnchang PCL, Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development, Japan Bank for International Cooperation (JBIC), Germany's Siemens, South Korea’s Hyundai and Italy’s Ferrovie dello Stato Italiane.
BSR Joint Venture includes BTS Group Holdings, Sino-Thai Engineering & Construction and Ratchaburi Electricity Generating Holding.
Infrastructure expert Rachel Turner of Pinsent Masons, the law firm behind Out-Law.com, said, "Projects such as this one developed through the 'belt and road' initiative will involve increasing numbers of consortium parties from around the world working closely together. Whilst a great opportunity, this will introduce additional challenges and risks that will require careful planning and management throughout the project."
A decision about which consortium should do the work will go before the cabinet between 28 and 31 January and the winner will get a 50-year-contract, including the five years it will take to build, according to Bangkok Post.
This article was published in Out-law here.
For further information, please contact:
Rachel Turner, Pinsent Masons
rachel.turner@pinsentmasons.com
