Thailand puts high-speed rail project on track with land pledge

[mikebell]

On 1/19/2020 at 7:54 AM, rooster59 said:

after making a unusual pledge to secure all land for the builders in a timely fashion.

The land was secured before any announcement of a hint of a dream of an idea of a rail connection.  Lots of politicians/army officers and those in the know will have been snuffling round the area.

[chainarong]

One need not hold one's breath otherwise going on past performances over forty years one might accidentally die.

[Srikcir]

On 1/19/2020 at 8:28 AM, smutcakes said:

It will never get built and the taxpayer will end up coughing up obscene sums in damages for non delivery of land. CP will get what they always wanted which is the 100 rai or so around Makkasan for commercial development. No one will be held to account as they all scurry of with millioms in their pockets... mark my words..

 

I believe that the CP Group consortium would finance the development and recoup its investment (likely coming from consortium member who is a China state-owned enterprise) by exclusive right to operate the high-speed rail system for a period of 50 years and commercially develop 150 rai of land in the Makkasan area and a 100-rai plot in Chon Buri’s Si Racha.

That said, the government would provide a state subsidy of 119 billion baht for the project.

https://www.pwc.com/th/en/deals/assets/infrastructure-news/Issue7.pdf

So it seems the consortium's net investment is 225 billion baht ($7.43 billion) less the subsidy of 119 billion baht (53%) or 106 billion baht (47%). Thai taxpayers make the majority investment!

 

CP Group and its partners won the bid for the project - bidding some 60-100 billion baht (nearly $2 billion+) less than the next-lowest competitor BSR Joint Venture. (in part from) https://www.reuters.com/article/thailand-railways/thai-airport-rail-contract-deadline-extended-in-row-over-risk-idUSL3N26U1SW

and https://www.pwc.com/th/en/deals/assets/infrastructure-news/Issue7.pdf

Obviously CP is not relying solely on a 50-year train operation to recover its investment.

 

It appears that the land is thus far not an issue. At the September meeting the latest meeting, the SRT had delivered 72% of land and deliver the remaining 28% in 2-3 years.

[Cashboy]

This project sounds as useful as HS2 in the UK in that it doesn't benefit the ordinary citizens.

 

The Thai government would have been better off double tracking the existing lines and running normal speed trains (as opposed to High Speed) for freight and passengers to take some of the coaches and lorries off the road.

 

I actually believe that Thailand as a destination for farang tourists is going to fall.

Even the Chinese tourism will probably be vacating in Cambodia and Vietnam and Laos as opposed to Thailand in the future.

[mokwit]

On 1/19/2020 at 8:28 AM, smutcakes said:

It will never get built and the taxpayer will end up coughing up obscene sums in damages for non delivery of land. CP will get what they always wanted which is the 100 rai or so around Makkasan for commercial development. No one will be held to account as they all scurry of with millioms in their pockets... mark my words..

I must say I was impressed how the NCPO were showcasing plans for the development of the SRT land at Makkasan within hours, literally, of the coup. Clever chaps to command the army and still have time to consider metropolitan land usage - perhaps with all those Generals they have a lot of spare time for that sort of thing.

[Grumpy John]

Giving CP the land sticks in my craw.  The land isn't the governments to give.  Sure the land not owned by the government can be compulsory acquired but It seems like dirty dealings to me.  So who's to benefit besides the insanely rich Chinese family that own CP? Maybe someone in the group photo? 

[liddelljohn]

On 1/19/2020 at 2:44 PM, bkk6060 said:

Keep us posted.

I will be dead in about 15 years so will have no clue what happened.

i have also thought is will be pie in the sky as the EEC plans has one massive flaw ,, Lack of water supply for   present users  let alone massive future development .

 

They are already building the roads  ,, maybe the railway will come ,,but all the current reservoirs in Chonburi, Rayong and Chantaburi are empty or very low the groundwater is low    and there is little approprate room for expansion of present reservoirs or building new ones ,, so the whole plan is  buggered  ,,,  the only thing that will flow is money and <deleted> ,,

 

Edited January 23, 2020 by liddelljohn