Bangkok: The Cabinet has ordered amendments to the M6 motorway contract to allow for partial payment of compensation before the service opens, addressing delays in civil works after the construction plan was behind schedule by 25 months.
According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, announced that the Cabinet approved changes to the contract for public-private partnerships (PPPs) concerning the operation and maintenance of the Bang Pa-in - Nakhon Ratchasima (M6) intercity expressway. This 196-kilometer expressway project involves government responsibility for civil works, while the private sector will co-invest in the system, operation, and maintenance under the PPP Gross Cost model. The co-investment period is set to not exceed 30 years from the commencement of service.
Certain sections of the highway department's civil engineering construction have faced obstacles, necessitating modifications to the construction plans and extensions to the project timeline. This has resulted in a delay of about 25 months in transferring the construction site to the private sector, affecting the planned opening date. Originally, the highway department could only compensate the private sector for system investment after the opening date. Due to the delay, the private sector has been unable to receive payment, which could impact their ability to repay loans to financial institutions.
The Ministry of Transport proposed amending the contract by adding a clause permitting the Department of Highways to pay part of the construction costs of the system and other related components before the opening date, solely for completed work. This amendment must not exceed the original proposal from the private sector and must not alter the total project compensation as calculated on January 10, 2025, which is set at 128.55 million baht. Payments will be made from the toll fee fund account and must not significantly impact the financial status of the said fund.
The deputy spokesperson clarified that this contract amendment does not represent additional compensation but rather an adjustment to the timing of partial compensation payments to ensure the project's financial stability. The private sector partner agreed not to claim further damages, and the 30-year operation and maintenance period remains unchanged. This amendment has been approved by the Public-Private Partnership Policy Committee under the Public-Private Partnership Act of 2019 and complies with all relevant legal procedures.