State Railway’s head clarifies recent board spill

Delays in five projects spurred govt to act

A “thorough check” into the bidding contracts for the five double-track railway projects led to delays in the project, which spurred the recent board sacking, says the State Railway of Thailand’s (SRT) acting governor Anon Lueagboribun.

On Thursday, Prime Minister Prayut Chan-o-cha issued an order under Section 44 of the interim charter to remove SRT governor Wuthichart Kalyanamitra along with the entire board and appointed Mr Anon, who was among the removed board members, as acting SRT governor.

According to the government, alleged regularities at the SRT, and the delay in bidding for the double-track railway projects were behind the purge.

Another Section 44 order was issued to set up a panel called a “superboard” to scrutinise state procurement and bidding on the five controversial double-track railway projects together along with two other railway projects and other state projects valued around five billion baht.

According to Gen Prayut’s order, seven double-track railway projects, worth 129.8 billion baht in total, will be closely monitored by the Prasan panel.

The five project are the 19-billion-baht Nakhon Pathom-Hua Hin section, the 23-billion-baht Lop Buri-Pak Nam Pho section, the 28-billion-bhat Map KabaoThanon Chira Junction section, the 9.8-billion-baht Hua Hin-Prachuap Khiri Khan and the 16-billion-baht Phrachuap Khiri Khan-Chumphon section.

Two other projects are the Thanon Chira Junction-Khon Kaen section and the Chachoengsao-Kaeng Khoi route.

According to Gen Prayut’s order, seven double-track railway projects, worth 129.8 billion baht in total, will have to be closely monitored by the panel.

Former Bangkok of Thailand governor Prasarn Trairatvorakul has been appointed to chair the panel.

Mr Anon said the delay in the projects was because the SRT demanded a careful consideration of all contenders before calling the bidding as they are big and expensive projects.

According to Mr Anon, the five projects must go through a “thorough check for transparency”.

He also insisted, as a means of improving transparency, on setting up a reference price for bidding on the projects, prices of rail tracks from five manufacturers in Japan, China, and Thailand were collected with the lowest price selected as the reference price.

During the bidding procedure, the SRT will not divide the contract of each project into several contracts, to avoid the risk of cost inflation.

By subdividing the contracts, more consultants would be needed while the management process of the projects would become more complicated.

The SRT has encountered problems in the past when multiple construction contracts have been given out. The SRT forward project details to the newly-appointed panel for consideration last Friday, deputy permanent secretary for transport Phiraphon Thawonsuphacharoen said.

Earlier, the SRT had set Feb 20 for when it will announce a list of names of companies that qualify for the bidding, according to Mr Phiraphon.

In another development, the Transport Ministry is preparing to ask the cabinet to approve five electric railway projects in Bangkok as well as a new expressway project, worth 316.5 billion baht in total, next month, Mr Phiraphon said.

The projects are the Purple Line extension linking Tao Pun and Rat Burana, two sections of the Green Line extensions — Samut Prakan-Bang Pu and Khu Khut-Lam Lukka, a Blue Line extension connecting Bang Khae and Phutthamonthon Sai 4 and an Orange Line extension from Bang Khun Non to Thailand Cultural Centre.