Free Consultant
The Supreme Administrative Court’s ruling on The Hopewell Case
On Monday 22nd April 2019, the Supreme Administrative Court ordered the State Railway of Thailand (SRT) and the Transport Ministry to pay 11.88 billion Baht in compensation to Hopewell for the cancellation of the project. SRT may need a new debt-restructuring plan after a court-ordered it and the Transport Ministry to pay almost 12 billion Baht in compensation to Hopewell (Thailand) Co. for cancelling a mega-transport project 20 years ago. The project comprised a 60 km railway and a tollway in Bangkok. The payout consists in a 9 billion Baht repayment for the construction costs incurred by Hopewell, a 2.85 billion Baht repayment for land use fees paid by Hopewell to SRT and a 38 million Baht fee paid by Hopewell as project guarantee. The court also ordered that payments, at a 7.5% interest rate, have to be made within 180 days.
