Project split 'invites collusion on bidding'

The Transport Ministry's move to split the Purple Line project into three contracts has raised concern over possible bidding collusion, said a source in the ministry who fears that the government could end up investing a much higher sum than expected on the urban train route.

An engineering source said there were only three Thai contractors that had their own material production bases and therefore the potential to build the mega-projects: Italian-Thai, Ch Karnchang and Sino-Thai Engineering and Construction. The split of the contract into three parts means the three might not have to contend fiercely for the contracts.

"If bidders do not need to compete on pricing, they have the extra capacity to pay to favoured politicians and officials," he said. The source said the contractors would also gain from any increase in the project's budget.

He added that in general state agencies always set the budget of such mega-projects at a high level in order to cover inflation, especially in the cost of materials. This means they do not have to ask repeatedly for budget increases, risking construction delays.

The Transport Ministry will ask for the Cabinet's approval to increase the project budget in the civil-

work part by 5 per cent to Bt36 billion from the original Bt31 billion, citing the need to cover rising materials costs.

The first contract covers the eastern part of elevated route, which is 12 kilometres long and has eight stations. Fourteen contractors have purchased bid documents, which must be submitted by August 4.

The second contract covers the western part of the route, which is 11 kilometres long and has eight stations. Sixteen contractors have picked up the bidding documents, which are to be submitted by August 6.

The last contract covers the maintenance centre and car-park building. Twenty-three contractors have purchased bid documents, to be submitted by August 8.

The engineering source also questioned whether the Purple Line project could begin as planned after the bidding process, as it might experience protest from communities that would be environmentally affected by the construction.

Article 67 of the Constitution bans the construction of mega-projects that would have negative health and environmental impacts on nearby communities. The law requires public hearings on the projects.

 Though a public hearing on the Purple Line project has already been held, the project has still risks being halted by protests from the communities.

 The source also questioned whether the government would really slap fines on contractors if they failed to meet construction deadlines. He said the government had yet to impose fines on the contractors of the Airport Link project connecting Makkasan with Suvarnabhumi Airport, following their failure to meet deadlines.