Thai Transport Ministry tells SRT to scrap Red Line bidding process

Construction News

The Transport Ministry has scrapped the bid for the construction of an electric railway section from Bang Sue in Bangkok to Rangsit in Pathum Thani province because the lowest quote is too high.

The ministry ordered the State Railway of Thailand (SRT) to end the bidding contest to select a contractor for the 26km section of the Red Line electric railway, Deputy Transport Minister Chatt Kuldiloke said yesterday.

This was because the SRT set a budget for construction at 27.34 billion baht but the lowest negotiated quote, from the SU Joint Venture comprising Sino-Thai Engineering & Construction Plc and Unique Engineering and Construction Plc came in at 31.17 billion baht.

Pol Lt Gen Chatt said that the bidding process had been delayed for over a year and it would be inappropriate for the SRT to have to increase the budget substantially to meet the quotation.

However, the deputy minister said that before the next round of bidding takes place, the project budget would be adjusted to reflect present costs, especially the high cost of oil.

He added that the initial delay also prevented the SRT from opening another section of the Red Line from Bang Sue to Taling Chan because electric trains and a signalling system for the section had been included in the Bang Sue-Rangsit project.

SRT Governor Yutthana Thapcharoen said the Japan International Cooperation Agency (Jica) is fining the SRT 1.8 million baht a month for failing to accept its loan to spend on the Bang Sue-Rangsit project. So far, the fine has mounted up to 37.4 million baht.

He said the SRT would ask Jica to waive the fine because it partly caused the delay in the lending process in the first place.


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