Tot Board To Mull Broadband Network-expansion Project

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TOT board to mull broadband network-expansion project

By Usanee Mongkolporn

The Nation

Published on January 6, 2010

The TOT board on Friday will consider whether the state agency should go ahead with the controversial broadband network-expansion project worth about Bt3 billion.

TOT chairman Teravuti Boonyasopon yesterday said the board would call in the committee tasked with holding the e-auction to procure the network, following an allegation that one of the bid winners had failed to submit all the necessary documents within the deadline.

The board will also examine the committee's videotape of the bidders' document-submission process, as well as ask the panel why the winning bids were slightly lower than the median price.

"We will ask the committee whether the e-auction results should be cancelled. We will also consult the legal department on whether, should we decide to cancel the auction results, this will prompt a lawsuit against TOT from any parties that might be affected by the decision," he added.

TOT president Varut Suvakorn recently said the Information and Communications Technology Ministry had written to Teravuti, stating that TOT should handle the project with the utmost transparency and good governance.

The ministry added that whether or not TOT decided to proceed with the project, it would have to come up with a valid explanation for its decision.

TFM, JRT-JRW and Hi-tech Marubeni all won the TOT's e-auction in November to supply multi-service access node equipment for 577,000 broadband Internet and fibre-optic network ports to be installed nationwide.

Companies disqualified from participating reportedly alleged that the process lacked transparency.

TOT has earmarked Bt3.04 billion for the project, which is divided into four zones, the first two of which are in greater Bangkok.

Five consortia purchased bidding documents, but only JRT-JRW, TFM and Hi-Tech Marubeni qualified to participate in the e-auction.

Hi-Tech Marubeni won Zones 1 and 2. For Zone 1, it quoted Bt570 million, less than the median price of Bt573 million, while for Zone 2 it quoted Bt552 million, below the median price of Bt554 million.

JRT-JRW won Zone 3, quoting Bt832.5 million, less than the median price of Bt834.9 million. TFM won Zone 4, quoting Bt1.076 billion, below the median price of Bt1.078 billion.

ICT Minister Ranongruk Suwanchawee yesterday said the Cabinet had approved an extension of the period in which TOT could use the broadband network project's budget by another year. The budget was originally earmarked for 2008-09.

She said TOT now had to submit its decision on the project to Prime Minister Abhisit Vejjajiva within a month.

-- The Nation 2010-01-06

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[animatic]

If one bidder didn't get their act together, that's the bidders fault.

No reason to penalize all others who did get it right.

[basjke]

I don't know if it is because I'm no native english or the way the article is written but what I understand from reading it is that TOT saved 8 million on their outsourcing bids.So they have to spend 8 million less on upgrading their network,what is the problem with that?

What is strange however is that each of the 4 zones have bids which are exactly 2 million below the estimated price,is this coincidence.

[Meridian007]

I think there was some back-room corruption that wasn't hidden well enough, so TOT wants to cover their a$$ and make sure that things are kept "transparent". If it's actually completed well, and under the median bid, then I'll be pleasantly surprised!

[Asa]

I don't know if it is because I'm no native english or the way the article is written but what I understand from reading it is that TOT saved 8 million on their outsourcing bids.So they have to spend 8 million less on upgrading their network,what is the problem with that?

What is strange however is that each of the 4 zones have bids which are exactly 2 million below the estimated price,is this coincidence.

The TOT had done well with setting the median prices, exactly where the bidders think they can use the same figures plus/ minus 2-3 million in their bids and they won.

Well, if there are only 5 buying parties, and only 3 are qualified to bid. I would want to know what the disqualified two have to say why they missed out.

[d0om4gloom]

Well upgrading their access network will just cause a problem for the rest of us unless they invest in their backbone as well - particularly their international Goering arrangements

[alant]

an interesting insight into thai business practice

[Springman]

What a carry on