Ch Karnchang ready to bid for govt infrastructure projects

Construction News

DEPUTY PRIME MINISTER Somkid Jatusripitak recently chaired the Public-Private Participation Policy Committee (PPP) in which he announced the government’s plan to accelerate five infrastructure projects valued at Bt200.73 million by year’s end, according to Plew Trivisvavet, executive chairman of Ch Karnchang (CK) and chairman of Bangkok Metro (BMCL).

The five projects to be submitted to the Council of Ministers for approval comprise the Bt56.72 million Pink Line, Bt54.76 million Yellow Line, the Bt82.49 million Blue Line Extension Project, the Bt4.14 million Nonthaburi waste-to-energy plant, and the Bt2.25 million Nakhon Ratchasima waste-to-energy plant.

These projects will be operated under the Act on Private Participation in State Undertaking.

In addition, the government plans to accelerate 19 other mega-transport and logistics projects, including rail, land and air, with total investment value of Bt1.77 trillion.

Ch Karnchang is ready to participate in the bidding for these projects in any form, either private participation or general bidding, Plew said. CK has enough experience, personnel and capital to handle these projects.

Plew also said that 2015 was a significant year for CK and its subsidiaries due to the progress of major projects. For the Purple Line electric train system, the first shipment of rolling stock (three sets of trains) purchased from J-TREC in Japan, has already arrived in Thailand. The rest of the 21 sets of trains will gradually be shipped to Thailand by year’s end.

The trains will be tested before they are ready for official service in August 2016.

The Sirat-outer ringroad Expressway, which links the east and west sides of Bangkok, is 70 per cent completed and is expected to open by mid-2016. The two projects are expected to be completed ahead of schedule.

CK has optimised the capability of companies within the CK Group, including BMCL and BECL, in accelerating these projects.

Plew said these infrastructure projects would be accelerated as the government plays a vital role in stimulating the nation’s economy. CK has been working closely with BMCL and BECL, especially in the rail, land and air transport systems.

CK has vast experience in airport construction as it has also been involved in the construction of Don Mueang and Suvarnabhumi airports.

Meanwhile, the merger between BECL and BMCL is on track, Plew said, and it has agreed by the Expressway Authority of Thailand (EXAT), the Mass Rapid Transit Authority of Thailand (MRTA) and the PPP Policy Committee.

It has been passed to the Department of Public Prosecutor Commission so that the name of the new company can be changed on the draft contract.

It will be eventually be submitted to the Council of Ministers for approval and the concession will be transferred to the new entity – Bangkok Expressway and Metro (BEM). CH Karnchang has already made preparations to support the change and transfer and the entire process is expected to be completed in October.

BEM will be capable of operating and running the expressway and electric train system projects under the concessions, which will create greater value for the people.

It will also be able to expand investment and capability to improve competitive advantages over other companies after the integration of the Asean Economic Community.

BEM is expecting to have a great year in 2016 because new projects such as the Purple Line electric train system Bangyai-Bang Sue and Sirat-outer ringroad Expressway will commence operations ahead of the schedule.

This will generate more revenue for the company and elevate it to become a leading transport company in Thailand and the entire region.