ELECTRIC RAILWAY PROJECTS
AMORNRAT MAHITTHIROOK
Santi: Fair proposal |
The Japan Bank for International Cooperation has offered a soft loan worth 157 billion baht with a very low interest rate of 0.01% and 40-year repayment for two electric railway projects in Bangkok _ but it also demands fair bidding contests.
Transport Minister Santi Promphat said yesterday the JBIC was offering the soft loan for the Blue Line and the Red Line projects. The Blue Line loop from Hua Lamphong to Bang Khae and from Bang Sue to Tha Phra is worth 80 billion baht, and the Red Line from Bang Sue to Rangsit, 77 billion baht.
Mr Santi said the country could save a lot of money, thanks to the low interest rate and the long repayment period. Normally, JBIC offers a repayment period of 25-30 years with a 1.4% interest rate.
The minister said the JBIC's proposal was acceptable because the bank only demanded Japanese contractors have the right to bid for the railway projects. Nothing in the proposal implied they should be given special treatment.
JBIC also demanded fair evaluation of bids, and referred to a train supply contract for Bangkok's existing subway from Hua Lamphong to Bang Sue, which belongs to the Mass Rapid Transit Authority (MRTA).
The bank complained that a Japanese train supplier first won the contract, but later lost it to Siemens Co of Germany.
MRTA governor Prapat Chongsanguan said the Mitsubishi-Alsthom consortium had won the subway contract, but problems arose regarding the cost and delivery of trains.
Consequently, the MRTA's subway concessionaire, Bangkok Metro Plc (BMCL) decided to buy the trains from Siemens, which agreed to lower its quotation and also promised faster train delivery, he said
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