BANGKOK — 16 January 2026, Thailand’s transport ministry is reviewing procedures to terminate construction contracts with Italian-Thai Development Plc (ITD) on two major projects following a series of accidents, Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn said on Thursday.
Speaking after chairing a meeting with relevant agencies at the Ministry of Transport, Phiphat said a fact-finding committee had been tasked with examining whether the government could legally cancel contracts with ITD for two projects under the prime minister’s directive.
The contracts under review include civil works on the Thai–Chinese high-speed rail project, Contract 3-4 covering the Lam Takhong–Sikhio and Kut Chik–Khok Kruat sections, and the elevated highway project on the Ekachai–Ban Phaeo route, part of Motorway M82, Section 7. The committee has been given seven days to reach a conclusion, including consideration of international legal principles and administrative law.
Phiphat said compensation was already being provided to victims of a recent accident in Sikhio district. The State Railway of Thailand has paid initial assistance of 340,000 baht per person, while Dhipaya Insurance Plc will pay 1 million baht per fatality. The compensation will be formally presented by the prime minister next week. Measures to assist victims of a separate accident on Rama II Road are still under consideration.
Addressing concerns about potential legal action, Phiphat said cancelling the contracts would be difficult but necessary, citing public safety as the top priority. He noted that both projects were large-scale works that had seen frequent and closely spaced accidents.
He said the ministry had consulted the Council of State and the Comptroller General’s Department, which advised that the contracts could be terminated under administrative law, even if this led to lawsuits from the private contractor.
Phiphat said the ministry would proceed with cancelling the two contracts even though construction on the Thai–Chinese rail project was about 99% complete. He acknowledged that legal action from the contractor was likely but said the government would accept the risk to ensure the projects could move forward under safer conditions.
He also ordered an immediate halt to all ITD construction projects under the transport ministry’s supervision. Specialists from the Engineering Council of Thailand and the Engineering Institute of Thailand will inspect machinery, equipment and safety standards over the next 7–15 days. Projects found to be unrelated to the accidents and meeting safety requirements may be allowed to resume.
Jirapong Theppithak, deputy permanent secretary for transport and head of the highway infrastructure development cluster, said 14 ITD contracts would be suspended for 15 days to allow for detailed safety inspections. Findings will be reported to the ministry for further legal and administrative action.
He added that large construction projects operated by all companies under the ministry’s oversight would also be temporarily suspended for up to 15 days to undergo similar safety checks.