WICHIT CHANTANUSORNSIRI

Payments for the 30-billion-baht Airport Rail Link project will only be made by the Finance Ministry under a cabinet order, according to ministry officials.

The Airport Rail Link, running from central Bangkok to Suvarnabhumi Airport, is suffering from significant delays and potential cost overruns. The original contract gave Sino-Thai Engineering 990 days to complete the project, which was to be completed last month and delivered to the State Railway of Thailand by the end of the year.

The SRT has approved giving Sino-Thai an additional 300 days to complete the project, now 70% complete, after considering the contractor's complaints about delays in transferring land and property for civil work, particularly around the Makkasan area.

Under the existing contract, the Finance Ministry is responsible for issuing state bonds to finance payments to the contractor upon delivery.

''But as the contractor has not completed the project within the set timeframe, it remains uncertain whether the payments must be made. And if payment is required, how much should be paid, considering that the work is only partially complete,'' said one ministry official.

It also remains uncertain who is responsible for carrying the interest costs incurred due to the 300-day delay. Under the contract, the 30-billion-baht payment owed Sino-Thai represents construction costs as well as interest expenses from bank loans taken by the company for the project.

The Finance Ministry has asked the SRT to open negotiations with Sino-Thai and Kasikornbank, the project's lead banker, regarding the extra interest expenses.

The new railway will offer public transport service between the inner city and Suvarnabhumi airport. An express trip will take 15 minutes and a regular commuter trip 30 minutes.