Thailand mulls single bidder for $13b mass transit project

Thailand mulls single bidder for $13b mass transit project

Nareerat Wiriyapong, Agence France-Presse, Bangkok

Thailand is considering awarding Bangkok's 550 billion baht
(US$13.75 billion) 10 line mass transit project to a single
bidder when it calls for proposals early next year, government
officials said.

The 10 new routes are meant to complement three existing lines
in the traffic-congested capital that are operated by two
companies -- one government owned and the other private.

"A single company operating the (new 10-line) system would
make the project more economical and be easier to operate,"
Thirdsak Setthamanop, deputy permanent secretary for transport,
told AFP.

Details about the routes for the new lines and their expected
operation dates have not been finalized.

The opposition has criticized the proposal, saying a single
bidder could lead to corruption of business alliances, and has
pointed to graft allegations surrounding construction of
Bangkok's new international airport.

Concerns have also been raised over the funding for the
project, particularly given that Thailand's current account
surplus fell 93 percent year-on-year in October.

Prime Minister Thaksin Shinawatra, however, said on Saturday
that barter trade such as rubber could be used to finance the
project.

The government has also said that the new lines will help
reduce soaring oil bills. Oil imports totaled US$1.82 billion in
October, up 64 percent year-on-year, according to the trade
ministry.

Bangkok's existing mass transit system has three lines -- two
above ground, and one underground -- totaling 75 kilometers (47
miles) of tracks. Together they carry almost 500,000 passengers
each day.

But the lines use different ticketing systems, meaning
commuters lack an integrated transport and payment system common
in cities such as Hong Kong.

The new project will be built by a private contractor and
operated by a government agency but it is unclear what the final
ownership structure will be.

The government will invite international bidders to
participate and will brief foreign diplomats about the plan on
December 15, Thirdsak said.

Germany's Siemens, Alstom of France and several companies from
South Korea and China have expressed an interested in the
project.

"We will welcome proposals from bidders some time during March
and April," Thirdsak said. "The selection process will take about
six months to finish so that we will be able to sign the
contracts in June."

Thai government spokesman Surapong Suebwonglee said on Friday
that awarding the contract to only one bidder would help to
prevent bidders joining together to collude and increase the bid
price.

Only companies with the proven ability to cover the entire
project could enter the bidding so that the government gets the
best proposal for the project, Surapong told reporters.

Government transport officials will meet interested bidders in
January before studying the details of the routes and investment
proposals, he added.