Treasury to probe water pipeline bid

The Treasury Department plans to set up a committee to probe the transparency of the bid to manage and operate the main water transmission pipeline system in eastern Thailand, says director-general Prapas Kong-Ied.

He said the prime minister ordered the Finance Ministry to set up such a panel. The department wants to set up the committee as quickly as possible to quell any public suspicion regarding the bidding process, said Mr Prapas.

He insisted the bidding process would be transparent.

Mr Prapas said the department still plans to sign a contract with Vongsayam Korsang Co, which won the bid, as a delay would affect the state coffers.

The department is expected to gain concession revenue of 1.5 billion baht in the first year of the contract.

He said if the signing were delayed, the department risks a charge of negligence of duty because this would delay the government’s receipt of concession revenue.

The department named Vongsayam the winning bidder of its concession to manage and operate the main water transmission pipeline system in eastern Thailand with a bid of 25.6 billion baht.

Eastern Water Resources Development and Management Plc (East Water) has held the concession since 1994.

The department called for a new round of bidding ahead of the concession’s expiration in 2023. The new concession has a term of 30 years.

Both Vongsayam and East Water bid in both the first and second rounds of the auction for the new concession.

Vongsayam won the bid in the second round, as the first round was revoked because of incomplete bidding terms of reference for the contract.

East Water petitioned the Central Administrative Court to seek an interim injunction because the Treasury Department terminated the first round of bidding. However, the court dismissed the request.