Foreign investors are reluctant to invest in the Eastern Economic Corridor (EEC) because of delays in some major infrastructure projects, among them the high-speed train linking U-Tapao, Suvarnabhumi and Don Mueang airports, according to the State Railway of Thailand (SRT) and government sources.

The high-speed train project has been delayed for four years, since the signing of the contract between the SRT and Asia Era One Company on October 24th, 2019.

Recently, Asia Era One was given until May 22nd to seek investment promotional privileges from the Board of Investment (BoI), so the SRT can issue a Notice to Proceed (NTP) with project implementation.

Asia Era One, formerly known as the Eastern High Speed Rail Linking Three Airports Company, is a joint venture between Charoen Pokphand Holdings, which holds a 60% stake in the company, and Bangkok Express Metro, China Railway Construction Corporation, Italian-Thai Development Corporation and CH Karnchang Company, each of which holds 10%.

The company won the international bid to build and run the project for 50 years, after it offered the lowest bid.

Since the signing of the contract, the project has encountered numerous problems, ranging from delays in the handover of land from the SRT, the COVID-19 pandemic, which affected the number of passengers using the Airport Link, and Asia Era One’s delay in seeking investment promotional privileges from the BoI, forcing the BoI to extend the deadline three times to date.

Asia Era One has also not yet concluded its investment planning, cited as one of the reasons for the company delayingits application for investment promotional privileges.

A senior SRT official said that the delay in the high-speed train project has affected the entire EEC development plan, as foreign investors are showing reluctance to invest.

The official said that the SRT can either amend the joint investment contract with Asia Era One, by deleting the requirement for Notice to Proceed (NTP), or revoke the contract and call a new bid.

He also said that the delays have affected other projects in the EEC, including the Eastern Airport City, the Phase 3 development of Map Ta Put industrial seaport and Phase 2 of Laem Chabang deep-sea port.