SRT may combine two blocks for commercial development as no bids received

[webfact]

SRT may combine two blocks for commercial development as no bids received

By THE NATION

 

 

The third invitation for bids since early July to build a commercial development project in Block A near the Bang Sue Central Station has received little interest from the private sector, a source from the State Railway of Thailand (SRT) has said.

 

The SRT is now considering combining Block A with Block E development projects to attract more investors, said the source.

 

“The project has received little interest due to two reasons, the first is the Covid-19 situation which has caused many investors to be more cautious,” said the source. “The second reason is that the project itself has less potential to make profit compared to other blocks, as the area has a train track passing through, making it harder to develop it for full-time commercial use.”

 

According to the law, SRT has to invite bids at least three times. If no private firm shows interest, SRT has to cancel the auction and review the possibility of opening new bids. Since the announcement of the project in May 2019, only three companies have purchased the TOR (terms of reference) documents, namely Central Pattana Plc, CH Karnchang Plc and Bangkok Expressway and Metro Plc, and so far none have submitted their bidding envelopes.

 

“SRT might continue the project by combining the 32 rai of Block A with Block E which has a bigger area of 79 rai and has more potential for commercial profit,” said the source. “The combination will result in a delay in development of Block A, but SRT estimates that it will not affect the opening of Bang Sue Central Station, scheduled for January 2021 as the construction of shops and commercial space in the station is already

finished.”

 

Source: https://www.nationthailand.com/news/30391591

 

-- © Copyright The Nation Thailand 2020-07-20

 

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[Srikcir]

So private enterprise sees in part no economic viability to commercial development, and SRT then decides to make its own investment? At potential considerable risk.

How about just plan on a large green space with minimal cost?

[hotchilli]

8 hours ago, webfact said:

The third invitation for bids since early July to build a commercial development project in Block A near the Bang Sue Central Station has received little interest from the private sector, a source from the State Railway of Thailand (SRT) has said.

Not surprising really.

[greeneking]

Often called the largest railway station in South East Asia.  But very few trains will be coming here, unless some of the promises are paid for and built.

 

[RichardColeman]

Sort of Field Of Dreams 2 where Kevin Costner fights a white elephant

[Sydebolle]

Central Pattana might be a bad choice as they have already leased a 47+ Rai big plot of land, where Central Ladprao, the congress centre and the hotel is built on.

That lease was inked 1978 for 30 years; upon expiry 12 years ago it was extended by another 20 years. The official lease agreement stated something like THB 67 million per month - go figure. The scary bit is the SRT itself, explains the succession of Thai governments.

Rarely a more run-down state enterprise just creaming off money but in good company with some other "national interest businesses" of the government. Something like "Thai Airways on overland wheels" ....