A major government construction project in Phrae worth 657,115,400 baht has stalled after contractors reportedly abandoned the site with work only about 25% complete. Officials say workers and equipment have already been removed, raising concerns that the contractor has effectively walked away from the project.

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The issue was discussed at 09:00 on 6 March during a meeting at the Provincial Public Works and Town & Country Planning Office in Phrae. The meeting was attended by a 24-member oversight delegation led by Nattanun Buasak, Director of the Anti-Corruption Suppression Group in the Public Sector 3, alongside Sarisa Rodthao from the public sector corruption prevention division, Chakkrik Phondahan, Deputy Auditor-General (Regional Audit Office 9), Anucha Satyadit, head of the Phrae Provincial Audit Office, and Teerapong Thong-on, a provincial governance representative. The meeting was chaired by Vice-Governor Chaiyasit Chaisamritphon, who is responsible for overseeing the project.

According to Sithipat Palanan, head of the Phrae Public Works and Town & Country Planning Office, the project was funded under the 2020 fiscal budget through the Office of the Permanent Secretary of the Ministry of Interior. Construction was awarded through an electronic bidding process to a joint venture between Akorn Development Co., Ltd. and China Railway Number 10 (Thailand) Co., Ltd.. The initial construction contract was valued at 539,995,000 baht with a planned duration of 1,080 days.

Work officially began on 31 March 2021 with the original completion deadline set for 14 March 2027. However, delays caused by the COVID-19 pandemic led to a government measure allowing an additional 554 days for completion and additional costs, extending the deadline to 19 September 2028.

Despite the extension, the project has progressed to only 25.13% completion. Officials say the contractor has received an advance payment  of about 81 million baht, and payments of 36 instalments totalling 63,759,200 baht.

The project includes construction of several facilities: a four-storey provincial government building, a 1,000-seat auditorium, a cafeteria building, a commercial clubhouse building, and associated site infrastructure.

Nattanun Buasak said evidence suggests the contractor has begun removing workers and construction equipment from the site, indicating the project may have been abandoned. Authorities are now moving forward with procedures to terminate the contract and appoint a new contractor to complete the project.

Officials are also reviewing whether the completed work corresponds to the funds already disbursed and are calculating the potential financial damage to the state. The contractor has reportedly cited pandemic disruptions, financial liquidity problems, and bureaucratic approval procedures as factors that slowed the construction.

Local residents in Phrae have expressed concern that the stalled project reflects inadequate oversight by provincial authorities. The delays are seen as affecting both the province’s development plans and the use of taxpayer funds.

Matichon reported that authorities are expected to proceed with the contract cancellation process while conducting a detailed financial assessment. A replacement contractor will then need to be selected to continue construction of the provincial government centre.

Pictures courtesy of Matichon

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Adapted by ASEAN Now Matichon 8 Mar 2026

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It’s hardly surprising to see China Railway No.10 at the centre of yet another mess.

This is the same company (who in partnership with Italian-Thai Development Public Company Limited) was involved in the Bangkok State Audit Office building collapse after the Myanmar quake.

Now they’ve apparently walked away from an unfinished ฿657m project in Phrae.

As for Italian Thai, let's not forget that on January 14, one of its cranes collapsed onto a moving passenger train, killing 32 people. The next day, another one of its cranes and a concrete beam at Rama 2 highway construction site fell onto traffic below, leaving two dead.

At some point you have question why Thailand keeps awarding major contracts to firms with this kind of track record!

Feels like it's business as usual in Thailand to take the money for a project then do a half job, to show something then disappear with most of the money.

I lost 1.5M Baht 3 months ago the same way, that's how they make money, after 2MB paid, the job was not even worth 1/4 of the payment. Then disappear and they're still there looking for new customers to steal.

Many people got even worse, I was lucky to exit the scam early.

Will I eve see the $ even after suing? Never! TiT.

4 hours ago, Jim Waldron said:

It’s hardly surprising to see China Railway No.10 at the centre of yet another mess.

This is the same company (who in partnership with Italian-Thai Development Public Company Limited) was involved in the Bangkok State Audit Office building collapse after the Myanmar quake.

Now they’ve apparently walked away from an unfinished ฿657m project in Phrae.

As for Italian Thai, let's not forget that on January 14, one of its cranes collapsed onto a moving passenger train, killing 32 people. The next day, another one of its cranes and a concrete beam at Rama 2 highway construction site fell onto traffic below, leaving two dead.

At some point you have question why Thailand keeps awarding major contracts to firms with this kind of track record!

Perhaps they keep awarding the contracts to some firms because reputable firms won't take on a project with the type of conditions that accompany it, so there are few if any options.

I will not be surprised if the quality of construction is suspect.

For education purposes; 🙃

"Tofu-dreg" construction refers to Chinese buildings or infrastructure with extremely poor quality, often characterized by shoddy materials and structural instability due to corruption or rushed timelines. The term, meaning "tofu dregs" (soybean residue), suggests they are as fragile as wet tofu. Recent examples include bridge and building collapses in China

6 hours ago, Georgealbert said:

A major government construction project in Phrae worth 657,115,400 baht has stalled after contractors reportedly abandoned the site with work only about 25% complete. Officials say workers and equipment have already been removed, raising concerns that the contractor has effectively walked away from the project.

Get today's headlines by email

The issue was discussed at 09:00 on 6 March during a meeting at the Provincial Public Works and Town & Country Planning Office in Phrae. The meeting was attended by a 24-member oversight delegation led by Nattanun Buasak, Director of the Anti-Corruption Suppression Group in the Public Sector 3, alongside Sarisa Rodthao from the public sector corruption prevention division, Chakkrik Phondahan, Deputy Auditor-General (Regional Audit Office 9), Anucha Satyadit, head of the Phrae Provincial Audit Office, and Teerapong Thong-on, a provincial governance representative. The meeting was chaired by Vice-Governor Chaiyasit Chaisamritphon, who is responsible for overseeing the project.

According to Sithipat Palanan, head of the Phrae Public Works and Town & Country Planning Office, the project was funded under the 2020 fiscal budget through the Office of the Permanent Secretary of the Ministry of Interior. Construction was awarded through an electronic bidding process to a joint venture between Akorn Development Co., Ltd. and China Railway Number 10 (Thailand) Co., Ltd.. The initial construction contract was valued at 539,995,000 baht with a planned duration of 1,080 days.

Work officially began on 31 March 2021 with the original completion deadline set for 14 March 2027. However, delays caused by the COVID-19 pandemic led to a government measure allowing an additional 554 days for completion and additional costs, extending the deadline to 19 September 2028.

Despite the extension, the project has progressed to only 25.13% completion. Officials say the contractor has received an advance payment  of about 81 million baht, and payments of 36 instalments totalling 63,759,200 baht.

The project includes construction of several facilities: a four-storey provincial government building, a 1,000-seat auditorium, a cafeteria building, a commercial clubhouse building, and associated site infrastructure.

Nattanun Buasak said evidence suggests the contractor has begun removing workers and construction equipment from the site, indicating the project may have been abandoned. Authorities are now moving forward with procedures to terminate the contract and appoint a new contractor to complete the project.

Officials are also reviewing whether the completed work corresponds to the funds already disbursed and are calculating the potential financial damage to the state. The contractor has reportedly cited pandemic disruptions, financial liquidity problems, and bureaucratic approval procedures as factors that slowed the construction.

Local residents in Phrae have expressed concern that the stalled project reflects inadequate oversight by provincial authorities. The delays are seen as affecting both the province’s development plans and the use of taxpayer funds.

Matichon reported that authorities are expected to proceed with the contract cancellation process while conducting a detailed financial assessment. A replacement contractor will then need to be selected to continue construction of the provincial government centre.

Pictures courtesy of Matichon

Join the discussion?

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Adapted by ASEAN Now Matichon 8 Mar 2026

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Are performance bonds required in Thailand for any government construction project? If not, why not?

Get in bed with the Chinese will only lead to one outcome. China is not your friend