Transport Ministry seeks to revise Bt122-bn Orange line project

[webfact]

Transport Ministry seeks to revise Bt122-bn Orange line project

By The Nation

 

 

Deputy Prime Minister and Public Health Minister Anuthin Charnvirakul said the Transport Ministry has proposed a revision of the Bt122-billion Orange mass transit line project - running from Thailand Cultural Centre to Bang Khun Non in Thonburi, west of Bangkok.

 

It was approved by the previous government but bidding has not been called. 

 

The former junta-backed government designated the project a public-private partnership (PPP), coming under a single contract for both construction and operation. It planned  to start public services of the orange line in 2026.

 

However, the Transport Ministry under new minister Saksayam Chidchob, now wants to split the project into two contracts of construction and operation, against the Finance Ministry's preference for a single contract as approved by the former government.

 

Several government agencies have calculated different internal rate of return of the project, Anuthin said.

 

Transport officials would meet today (September 10) to discuss all related issues, before making a proposal to the Cabinet. 

 

 “Personally, I like a split of the contract into two as risks would be diversified. It would also allow the participation of more contractors,” he added.

 

Source: https://www.nationthailand.com/business/30377214

 

-- © Copyright The Nation Thailand 2019-10-09

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[mok199]

1 for me 1 for you , 2 for me 1 for you , 3 for me.......

[Damrongsak]

20 minutes ago, mok199 said:

1 for me 1 for you , 2 for me 1 for you , 3 for me.......

Where's the payoff? 

 

 

 

Edited October 8, 2019 by Damrongsak

[Srikcir]

6 hours ago, webfact said:

“Personally, I like a split of the contract into two as risks would be diversified.

Just the opposite isn't it?

The risk is blended by the combination of the two project elements; thus, falling between the higher risk for one element and the lower risk for the other element.

Splitting the two project elements means one element (construction?) will carry a higher risk as a stand-alone element than the other element and higher than the diluted risk with the two combined elements. 

Furthermore, splitting the two elements opens more opportunity for surreptitious collusion, ie., special "backroom" state concessions not available openly under the TOR. Considering CP* Group was 2 billion baht (?) lower than the next lowest bid, any special advantage that might be negotiated outside the terms of the TOR (ie., development rights for adjacent project properties) would help CP recoup potential lost profits from its bid. Bids are typically awarded to the "best qualified" low bid. Thus, a low bid that depends on informal changes in the TOR should be disqualified.

 

* Note that "CP" does not stand for Communist Party although China state-owned enterprises are part of the CP Group.

[overherebc]

Revise.

Contracts I've worked on would generally be going well then someone would mention the 'big guy' from head office would be flying in next week as the 'client' wanted some parts of the contract 'revised'.

This was generally taken as one weeks breathing space for all to get cv's up to date and sent out to anywhere and everywhere.

[Pib]

Split into two contracts.  Make it so the winner of first contract can not compete for the second contract.  Makes it so more can eat at the trough.   Overall cost will probably go up, but more get fed at the trough.