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.