The Education Ministry looks set to scrap its contracts with two winning suppliers of 1.2 million computer tablets for students in the second phase of the government's One Tablet per Child scheme by mid-February.
Prathom 1 students at a Nakhon Ratchasima school try the new tablets they just received in September 2012. PRASIT TUNGPRASERT
A high-ranking source in the Office of the Basic Education Commission (Obec), which oversees the tablet auctions, said the move comes after the companies failed to meet their delivery deadlines.
For the second phase, the Thai government spent 4.61 billion baht of the fiscal 2013 budget for 1.63 million tablets for Prathom 1 and Mathayom 1 students.
The state, through the Education Ministry, has earmarked 4.8 billion baht in fiscal 2014 for another 1.6 million tablets.
Obec has set up a procurement and bid specification committee.
The second-phase tablet project is already a year behind schedule.
The source said the baht depreciation was the main cause for the failure to deliver all tablets within 90 days of the contract signing last September.
The two suppliers _ China's Shenzhen Yitoa Intelligent Control Co and Thailand's Jasmine Telecom Systems Plc _ said they had to shoulder an extra 10% cost or an additional 180 baht per tablet due to the weakening currency.
As well, a shortage of dynamic random-access memory due to a fire at the Chinese company's Wuxi factory last September was another factor.
Shenzhen Yitoa won two contracts to supply 800,000 tablets for Prathom 1 students in Zones 1 and 2.
Jasmine Telecom won a contract to supply 402,889 tablets for Mathayom 1 students and teachers in Zone 4.
"The deadlines for the two companies were Dec 23 and 25," said the source.
"Obec sent two letters to each one warning of a fine of 0.2% of the procurement cost per day. The firms must confirm their intentions and explain the delays this coming week."
The source said the contract allows the Thai government to terminate the contracts if the fine reaches 10% of the procurement cost.
The government also has the right to seize a 60-million-baht deposit from each company for the delivery failure.
The source said it is difficult to say when a new auction can take place after the contracts are scrapped.
"We will consider taking legal action against the firms to cover the extra costs if the new prices are higher," said the source.
A prolonged dispute between Supreme Distribution (Thailand) and the Education Ministry over bidding for Zone 3 has yet to be resolved.
Supreme Distribution last June won the bid to procure 426,683 tablets for students and teachers in Zone 3, but Education Minister Chaturon Chaisaeng cancelled the deal amid bid-rigging suspicions raised by the Office of the Auditor-General.
The company then lodged an appeal with the Comptroller-General's Department.
Panuwat Khantamoleekul, Supreme Distribution's managing director, said the department replied to the company last month that it did not have the authority to consider this issue and that the firm must appeal to Obec instead. "We'll request a meeting with Obec this month. We're still willing to supply the devices," Mr Panuwat said.