Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Thailand gives CP Group October 15 deadline to sign $7 billion rail deal

Published 10/03/2019, 04:05 AM
Updated 10/03/2019, 04:11 AM
Thailand gives CP Group October 15 deadline to sign $7 billion rail deal

Thailand gives CP Group October 15 deadline to sign $7 billion rail deal

By Panarat Thepgumpanat and Chayut Setboonsarng

BANGKOK (Reuters) - Thailand has given the agro-industrial conglomerate Charoen Pokphand Group (CP) until Oct. 15 to sign an investment agreement for the 225 billion baht ($7.36 billion) high-speed train project, a senior official said.

Deputy Prime Minister Anutin Charnvirakul announced the deadline on Thursday, adding that CP's bid for the project was 60 billion baht (nearly $2 billion) lower than competitors.

CP Group and 12 other companies won the bid for the project in May, beating out a consortium led by mass transit operator, BTS Group Holdings Pcl (BK:BTS).

Since then, the company has been negotiating with the State Railway of Thailand on terms of the agreement including land ownership.

"On Oct. 15, CP Group should sign the contract because if they don't, they will be blacklisted by the government," Anutin said.

He said failure to sign would mean other companies in the CP bidding group - including Bangkok Metro Expressway and Metro Pcl (BK:BEM), Italian Thai Development Pcl (BK:ITD), CH Karnchang Pcl (BK:CK) and China Railway Construction (SS:601186) - could also be affected in future government projects.

The high-speed train project, a private-public partnership, will connect Thailand's main international airport Suvarnabhumi to low-cost carrier airport Don Muang and U-Tapao airport in eastern Thailand.

"I think there will not be a problem in signing," acting governor of State Rail of Thailand, Worawut Mala, told Reuters.

There were land transfer concerns because of utility infrastructure that involved other agencies, but after meetings there are no problems, he said, adding that the government is ready to support the project.

CP Group, owned by Thai billionaire Dhanin Chearavanont, has businesses in agriculture through CP Foods Pcl (BK:CPF), telecommunications in China-mobile backed True Corporation Pcl (BK:TRUE) and Ping An Insurance Group (SS:601318).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.