The railway unions want an independent investigation into the tender procedure for HSL airport, which is being built by a consortium led by the Charoen Pokphand Group.
The three unions of the State Railway of Thailand (SRT), metro and railway workers handed the government a letter with this request yesterday. They want the investigation because there are indications that the procedure did not follow the rules.
According to Akkarakrit Noonchan, director of research and development at the Governance Institute of Thailand, the consortium has negotiated with the SRT on terms not covered by the program of requirements. This would concern the extension of the operating concession from 50 to 99 years and the request to the government to provide a loan. The consortium would also have tried to get a subsidy from the government when the income from the operation is disappointing.
The 220 km long high-speed line between Don Mueang, Suvarnabhumi and U-Tapao is expected to become operational in 2024. The SRT previously announced that it would transfer 80 percent of 10.000 rai so that the consortium can start construction.
The group of trade unions also wants a separate inquiry into the consequences of the Eastern Economic Corridor (EEC). They say the plan is disastrous for residents and the environment.
Source: Bangkok Post
Public procurement procedures in which a rough selection of offers is made in the first instance and then proceed to a negotiated procedure with a limited selection, even with one candidate, exist in many countries, including the EU. To avoid arbitrariness and favoritism (principle of equality), a program of requirements is always established in advance. That cannot be changed. The degrees of freedom for the second phase, the negotiation phase, are also determined in advance
If the operating concession was extended from 50 to 99 years, this smells like far-reaching profit maximization for the private party with the cooperation of the board. If the government grants a loan to the tenderer, there is a presumption that it does not have the necessary capacity to carry out the contract. If the consortium receives a subsidy from the government to cover disappointing exploitation, this seems suspiciously like averting business risk towards taxpayers.
Would they not know the rules of the game very well? No, they know it way too well 🙂
The people have the leaders they deserve. That is sometimes said. I doubt very much whether this also applies to Thailand.
I find it surprising in itself that the SRT unions ring the bell. There is still hope for recovery for the people 🙂