Thailand mulls single bidder for $13b mass transit project<\/p>\n
Nareerat Wiriyapong, Agence France-Presse, Bangkok<\/p>\n
Thailand is considering awarding Bangkok's 550 billion baht
\n(US$13.75 billion) 10 line mass transit project to a single
\nbidder when it calls for proposals early next year, government
\nofficials said.<\/p>\n
The 10 new routes are meant to complement three existing lines
\nin the traffic-congested capital that are operated by two
\ncompanies -- one government owned and the other private.<\/p>\n
\"A single company operating the (new 10-line) system would
\nmake the project more economical and be easier to operate,\"
\nThirdsak Setthamanop, deputy permanent secretary for transport,
\ntold AFP.<\/p>\n
Details about the routes for the new lines and their expected
\noperation dates have not been finalized.<\/p>\n
The opposition has criticized the proposal, saying a single
\nbidder could lead to corruption of business alliances, and has
\npointed to graft allegations surrounding construction of
\nBangkok's new international airport.<\/p>\n
Concerns have also been raised over the funding for the
\nproject, particularly given that Thailand's current account
\nsurplus fell 93 percent year-on-year in October.<\/p>\n
Prime Minister Thaksin Shinawatra, however, said on Saturday
\nthat barter trade such as rubber could be used to finance the
\nproject.<\/p>\n
The government has also said that the new lines will help
\nreduce soaring oil bills. Oil imports totaled US$1.82 billion in
\nOctober, up 64 percent year-on-year, according to the trade
\nministry.<\/p>\n
Bangkok's existing mass transit system has three lines -- two
\nabove ground, and one underground -- totaling 75 kilometers (47
\nmiles) of tracks. Together they carry almost 500,000 passengers
\neach day.<\/p>\n
But the lines use different ticketing systems, meaning
\ncommuters lack an integrated transport and payment system common
\nin cities such as Hong Kong.<\/p>\n
The new project will be built by a private contractor and
\noperated by a government agency but it is unclear what the final
\nownership structure will be.<\/p>\n
The government will invite international bidders to
\nparticipate and will brief foreign diplomats about the plan on
\nDecember 15, Thirdsak said.<\/p>\n
Germany's Siemens, Alstom of France and several companies from
\nSouth Korea and China have expressed an interested in the
\nproject.<\/p>\n
\"We will welcome proposals from bidders some time during March
\nand April,\" Thirdsak said. \"The selection process will take about
\nsix months to finish so that we will be able to sign the
\ncontracts in June.\"<\/p>\n
Thai government spokesman Surapong Suebwonglee said on Friday
\nthat awarding the contract to only one bidder would help to
\nprevent bidders joining together to collude and increase the bid
\nprice.<\/p>\n
Only companies with the proven ability to cover the entire
\nproject could enter the bidding so that the government gets the
\nbest proposal for the project, Surapong told reporters.<\/p>\n
Government transport officials will meet interested bidders in
\nJanuary before studying the details of the routes and investment
\nproposals, he added.<\/p>",
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