Court rejects Hopewell's Bt12 bn claim against Thai govt

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Court rejects Hopewell's Bt12 bn claim against govt
KESINEE TAENGKHIAO
THE NATION



BANGKOK: -- The Central Administrative Court has overturned an arbitrator's order that the government pay a private firm about Bt11.88 billion over the now-abandoned Hopewell Project.

The court decision is based on a technicality, as it found that Hopewell (Thailand) petitioned the arbitrator too late.

The firm demanded the large amount of compensation from the Transport Ministry and the State Railway of Thailand (SRT), accusing the two agencies of unfairly cancelling its contract in 1998.

"By law, the parties in the conflict must petition the arbitrator within 60 days or the Central Administrative Court within five years since the termination of contract took place," the court announced yesterday.

Although the arbitrator had accepted the complaint from Hopewell (Thailand) and delivered a ruling in its favour, the Central Administrative Court yesterday ordered nullification of the arbitrator's order.

The Hopewell Project is a long saga.

It traces back to 1990, when the government came up with plans to develop an elevated road and train system in Bangkok and to utilise SRT land plots efficiently.

The project fell flat. Because of many problems, the government finally decided to terminate the contract.

The Transport Ministry and the SRT also fought against Hopewell (Thailand)'s bid to claim compensation.

Hopewell (Thailand) may appeal against the Central Administrative Court's decision. But any appeal to the Supreme Administrative Court must be filed within 30 days of yesterday's ruling.


-- The Nation 2014-03-14

[HeavyDrinker]

The Hopewell Project is a long saga.

No sh*t....

[LomSak27]

^{The court decision is based on a technicality,}

Ahh they found something, anything to deny payment - now if only a jet plane owned by the Thai goverment was around. IMPOUND!!!!!!!

[pitrevie]

^{The court decision is based on a technicality,}

Ahh they found something, anything to deny payment - now if only a jet plane owned by the Thai goverment was around. IMPOUND!!!!!!!

I would like to know how many times this ploy has been used in Thailand. What is the saying, "Justice delayed is justice denied".

[clockman]

One day!!!!!!!!!!! Remember the impounded plane. Justice.

[airconsult]

Or is it another political decision?

After all, the minister who ignored the Attorney Generals advice and cancelled the Hopewell contract in 1998 (resulting in an arbitration award to Hopewell of 11.8 Billion plus 7.5% interest) was.... wait for it.... Suthep.

Interestingly after the arbitration award in 2008, the democrat-led government tried to get the supreme court to dismiss the award - the supreme court of justice refused to hear the case - now I see the admin court took it up instead.....

Again, after the arbitration award in 2008, the Transport ministry rewrote the rules for public/private partnerships, ruling that you cannot go to arbitration - there's been a significant slowdown in international bidders since.

Edited March 14, 2014 by airconsult

[worgeordie]

Tourist attraction the "Stonehenge of Thailand ", come on TAT

another idea for you.

regards Worgeordie

[airconsult]

Tourist attraction the "Stonehenge of Thailand ", come on TAT

another idea for you.

regards Worgeordie

Could be a bit academic this ruling anyway - the contract on the airportlink was closed, but during construction they had to demolish the west to east hopewell pillars.

I remember Hopewell got a court order to stop it (as the pillars belonged to them) and then after some very quiet negotiations Hopewell said they had agreed.

During that period the cost of construction went from 25.9 billion to over 32 billion - I've always wondered if there was a part-payment in there to Hopewell.

Cheers

[JesseFrank]

It's beyond my understanding how a Thai court can be qualified in a dispute between the government of Thailand and an international based company.

Only an international court should be considered unbiased in such a case.

[sharecropper]

It's beyond my understanding how a Thai court can be qualified in a dispute between the government of Thailand and an international based company.

Only an international court should be considered unbiased in such a case.

It might be part of an enforcement action.

[JoeThePoster]

Interesting view from the other side in this 1998 article.

http://www.scmp.com/article/261048/hopewell-sue-bangkok-over-failed-transit-project

[sharecropper]

It's beyond my understanding how a Thai court can be qualified in a dispute between the government of Thailand and an international based company.

Only an international court should be considered unbiased in such a case.

It might be part of enforcement proceedings.

[Lupatria]

Maybe it's time to ground another aircraft. This tricky ruling seems to be another nail in the coffin of investor's confidence.

Looks like all of Yingluck's jetsetting and lunch-meetings were nothing but another burden for tax payers:

March 10, 2014 Yingluck holds meeting with economic ministers. The meeting was expected to focus on the problem of declining investors' confidence due to political instability

BANGKOK, 7 March 2011 The prime minister has kicked off the official road show to Japan in the hope of helping boost foreign investor confidence in Thailand.

Mar 5, 2012 Thai Prime Minister Yingluck Shinawatra will visit Japan on Tuesday to strengthen bilateral ties and revive Japanese investor confidence in Thailand

[solstan]

Interesting view from the other side in this 1998 article.

http://www.scmp.com/article/261048/hopewell-sue-bangkok-over-failed-transit-project

The reason why was stated in that article above and that puts a perspective on both the reasoning and the ruling of today:

'They only completed 12 per cent of the work they were committed to finishing in time for [next month's] Asian Games. Who is being fair to whom?' Mr Pradit said.

'If the work is completed by 70 per cent and we terminate it might be unreasonable. But 12 per cent - I don't think so!' Mr Pradit said the impact on international opinion was carefully considered before the project was scrapped by the previous government.

It doesnt say to much about why they were late (except fo property losses) but they hadnt finished what they commited to do, far from .... they had a deadline and if another part was behind the delay, then they are the one they should sue, as I can read it.

[JesseFrank]

Interesting view from the other side in this 1998 article.

http://www.scmp.com/article/261048/hopewell-sue-bangkok-over-failed-transit-project

The reason why was stated in that article above and that puts a perspective on both the reasoning and the ruling of today:

'They only completed 12 per cent of the work they were committed to finishing in time for [next month's] Asian Games. Who is being fair to whom?' Mr Pradit said.

'If the work is completed by 70 per cent and we terminate it might be unreasonable. But 12 per cent - I don't think so!' Mr Pradit said the impact on international opinion was carefully considered before the project was scrapped by the previous government.

It doesnt say to much about why they were late (except fo property losses) but they hadnt finished what they commited to do, far from .... they had a deadline and if another part was behind the delay, then they are the one they should sue, as I can read it.

There were delays because of the high level of corruption the project was ridden with, and because the government ran out of money in 1997, so they didn't purchase the land in time.

[fab4]

Maybe it's time to ground another aircraft. This tricky ruling seems to be another nail in the coffin of investor's confidence.

Looks like all of Yingluck's jetsetting and lunch-meetings were nothing but another burden for tax payers:

March 10, 2014 Yingluck holds meeting with economic ministers. The meeting was expected to focus on the problem of declining investors' confidence due to political instability

BANGKOK, 7 March 2011 The prime minister has kicked off the official road show to Japan in the hope of helping boost foreign investor confidence in Thailand.

Mar 5, 2012 Thai Prime Minister Yingluck Shinawatra will visit Japan on Tuesday to strengthen bilateral ties and revive Japanese investor confidence in Thailand

Must be a contender for the most off topic post ever. Where's rubl when you need him?

[whybother]

Maybe it's time to ground another aircraft. This tricky ruling seems to be another nail in the coffin of investor's confidence.

Looks like all of Yingluck's jetsetting and lunch-meetings were nothing but another burden for tax payers:

March 10, 2014 Yingluck holds meeting with economic ministers. The meeting was expected to focus on the problem of declining investors' confidence due to political instability

BANGKOK, 7 March 2011 The prime minister has kicked off the official road show to Japan in the hope of helping boost foreign investor confidence in Thailand.

Mar 5, 2012 Thai Prime Minister Yingluck Shinawatra will visit Japan on Tuesday to strengthen bilateral ties and revive Japanese investor confidence in Thailand

Must be a contender for the most off topic post ever. Where's rubl when you need him?

Is that your application for being a Mod?

There is report button that you can use if you think it's O/T.