Bt11bn compensation over Klong Dan project

Construction News

The Nation

Thai Arbitration Institute (TAI) yesterday issued a verdict on the Klong Dan wastewater treatment project, demanding Pollution Control Department (PCD)to pay compensation for the jointventure construction company NVPSKG.

Panel of arbitrators chaired by Witoon Tangtrongjit and other arbitrators including Satient Wongwachian and Kian Permboon had read the verdict on the case and asked PCD to pay Bt 4 , 983 , 324 , 383 and US$ 31 , 035 , 780 as compensation and 7.5 percent as interest of Bt 4 , 424 , 099 , 982 and US$ 26 , 434 , 636 which counted from 28 February 2003. PCD also must return letters of guarantees and fee worth Bt 6 million to NVPSKG.

Previously PCD had hired NVPSKG to constructed the Klong Dan wastewater treatment project located at Samut Prakan province. The project, worth Bt 23 billion, had started constructing since August 1997 and almost completed 98 percent of construction but PCD had alleged that there was corruption regarding the purchase of land and accused NVPSKG for conducting the fraud construction contract.

But NVPSKG had later submitted its petition to TAI and asked PCD to pay Bt 6.2 billion as compensation but PCD had denied to participate into the process under TAI. After that, NVPSKG had asked Civil Court to appoint arbitrators for PCD.

Natural Resources and Environment Minister Suwit Khunkitti said Office of the Attorney General had sent its official letter to PCD to inform about the verdict after that PCD had sent its official letter to the Finance Ministry on February 2 to ask the comment from ministry. This process had followed the Office of Prime Minister’s regulation.

Meanwhile, PCD has asked the Office of the Attorney General to appeal the TAI’s verdict to Civil Court and the ministry did not agree to appoint the arbitrators. Additionally, civil court earlier had sentenced that the contract between PCD and NVPSKG was invalid.

However, PCD’s director general Supat Wangwongwattana will today hold press conference to clarify about the TAI’s verdict.


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