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Tue, July 11, 2006 : Last updated 21:59 pm (Thai local time)



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Home > Business > Bidding may be set back





Bidding may be set back

Transport Minister Pongsak Ruktapongpisal said bidding for the construction of three electric-train routes may be delayed from July 27. This is because the ministry has to wait until the Cabinet thoroughly screens the requirements in bidding documents.

Pongsak said the ministry had to delay the starting date for term of reference (TOR) documents for turn-key bids for the new train routes because the Cabinet has yet to approve comprehensive procurement requirements. The three rail lines will cost around Bt200 billion.

In response to criticism that the TOR was designed to benefit a particular group of investors, Pongsak said that working committees had been working to ensure fairness for all bidders.

"The public should be invited to criticise and review the draft before selling TOR documents to the investors," he said. Otherwise, it would be difficult to review the TOR after they have been written. However, he expected the bidding should occur under the caretaker government.

As for conditions in the TOR enabling the contractor to draw an advance payment of 25 per cent, Pongsak said he had assigned the State Railway of Thailand and the Mass Rapid Transit Authority of Thailand to consider whether to lower the advanced payment to 10 or 15 per cent.

Pongsak said the turn-key system was appropriate because it would allow all bidders a chance to join the project in the public interest.

The government plans to start construction of three lines: red, purple and blue. Pongsak said the government would have sufficient funds to finance the project in spite of delays in budget disbursement.

    The government hopes to stimulate the economy through public spending. The slow-down in the economy is largely due to decelerating public consumption.








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