Ascon executive chairman and CEO Pattanapong Tanumathaya said yesterday it had signed a primary agreement with German-based construction firm Starbag to set up a joint venture to bid jointly for the extension of five electric-rail routes linking Bangkok with its suburbs.

Starbag will have a 65-per-cent stake in the joint venture, while Ascon will hold the remaining 35 per cent.

However, Pattanapong said, "To diversify any risks, Ascon Construction will reduce its stake by up to 20 per cent in favour of any Japanese construction firm as a new partner."

He added that most projects would be financed by the Japan Bank for International Cooperation (JBIC).

In spite of uncertainties, he expects the first line to be opened for bidding to be the Red Line's Bang Sue-Taling Chan section. This line can be opened for bidding without JBIC loans.

However, he said bidding for this section was unlikely to take place as scheduled next month, because the State Railway of Thailand was seeking new consultants to redesign its construction plan, a process that was expected to take four months.

Previously, Sombat Kitjalaksana, managing director of Bangkok Metro, operator of the subway, said the company and its partners were ready to bid for operation of all five electric-rail routes. He added that parent firm Ch Karnchang was also ready to bid to construct the lines.

Meanwhile, Italian-Thai Development is also ready to bid jointly for the project, in an attempt to control at least 30 per cent of the Bt165.4-billion budget, the company's management said.

Pattanapong said Ascon Construction expected its sales revenues this year to reach Bt2.5 billion, up from Bt1.5 billion last year. He said its business policy for this year would be to focus on bringing up its backlog value to Bt5 billion. Currently, the company has 10 construction projects in hand with a total value of Bt3.2 billion.

Watcharapong Thongrung

The Nation