Successive governments have pushed the development of clean energy, particularly solar power projects, for more than a decade, but the project procurement process is rarely considered clean.
The Public Sector Anti-Corruption Commission (PACC) last month found irregularities in solar-powered street light projects in local communities.
The agency said the procurement cost of equipment and installation differed widely among tambon administration organisations (TAOs) despite the equipment bearing similar specifications. A PACC probe is now under way.
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The agency has sent staff to survey the TAOs which bought the sets for unusually high prices. No estimate of damage in the 548-million-baht project is yet available.
In one example of the price discrepancies, a set of solar street lights, consisting of a solar panel, an LED lamp, a metal pole and concrete base, cables, and battery cost around 42,000 baht for the Nong Sano TAO in Buri Ram, but 114,000 baht for the Dong E-Chan TAO in the same province.
Last month, 17 sets of solar-powered street light poles were installed in tambon Nong Sano, of which half is farm land where the state electricity grid does not yet extend.
Kriangsak Phawponsong, chief of Nong Sano TAO, said eight TAOs in Nang Rong district received state funding for the project of 1.938 million baht each. At the beginning of the project, he said, a group of people approached the TAO and offered benefits to TAO members on condition that the TAO must develop the project based on their cost estimates. They were told the TAO also must hire a contractor they suggested.
Under the proposal, the estimated cost of installation of 17 solar street lights was 1.938 million baht, or 114,000 per set.
"We didn't really know much about the actual cost of the development, but I was worried about a mishap after checking the pricing lists and found the cost for digging a 30x30cm and 80cm deep hole to make the base of the light pole was as high as 27,000 baht," he said.
"So I checked the cost of a similar solar light from various developers and found the actual cost should not exceed 48,000," he said.
He consulted the district chief who also agreed the price was over-inflated. As a result, the TAO opened bids for the project and ended up with a cost of 42,000 baht per set. "Many villagers are happy they now have lights in their communities. It's a good project," said Mr Kriangsak. "But I'm not sure who else is gaining benefits."
Praiwan Lomrat, Dong E-Chan TAO chief, said his TAO agreed to enter the project at a price of 114,000 baht per set because the contractor guaranteed its equipment.
The solar-powered street light project was initiated early last year by the Yingluck Shinawatra administration under an urgent measure to step up safety and security.
The 548-million-baht budget was allocated by the Department of Local Administration (DLA) to local administration bodies in 13 provinces to develop street lights in their remote areas.
A source at PACC said the procurement prices were inflated by politicians to derive benefits from the project. Some TAOs' executives also had a hand in the irregularities, and a PACC investigation is underway.
Beside the inflated cost, several TAO members raised concerns over project maintenance.
Maitree Jinarat, the newly-elected chief of Ban Dan Khong Chiam tambon municipality, which is also under investigation by the PACC, said he did not know about the procurements, which took place before he took office.
However, he was concerned about the project maintenance, saying his municipality lacks the knowledge and equipment needed to fix the solar street lights. He said the solar light pole is 15-metres tall, which requires a crane truck to fix. But the crane is not available in the municipality. He will have to seek a maintenance budget from the government, with little chance of success. "It's possible the street lights would finally be abandoned," said Mr Maitree.
The Thaksin Shinwatra administration in 2003 launched a home solar-power project to install solar power systems in 203,000 households in remote areas where the national electricity grid is not available. The project cost 25,000 baht for each house.
Divided into three phases, the Provincial Electricity Authority (PEA) took the lead on installation and then transferred the project to local administration bodies.
By the end of 2006, about 180,000 houses had taken part in the project during the first and second phases.
The Office of the Auditor-General conducted random surveys among 422 TAOs in 60 provinces and found many sets of solar power systems were abandoned or malfunctioning.
The OAG estimated about 10% damage had occurred in the project, resulting in the suspension of the third phase in 2007. Some solar panels under the defunct project are now used for drying fish or clothes.
"After a year or two, some solar devices fell out of order mainly because villagers did not know how to maintain the system," said Kosol Saengtong, resident of Pa Deng village in Phetchaburi's Kaeng Krachan National Park. "It's important to educate people before these things are installed."
Solar panels were installed for about 100 households in Pa Deng village. Mr Kosol and a group of villagers have modified the solar panel system by using vehicle batteries and a computer UPS to replace solar panel batteries when they expire. The modified panels can store some level of power to operate small water pumps and a few light bulbs.
Last year, the National Energy Policy Committee under the Yingluck government also launched an ambitious project to encourage 800 communities or TAOs nationwide to install solar photovoltaic (PV) panels, known as solar farms, in their communities.
They were aimed at generating one megawatt of electricity for each community, or 800 megawatts in total.
Under the project, known as "One Community, One Megawatt", the PEA buys electricity from communities under a 25-year contract.
The Department of Alternative Energy Development and Efficiency said the investment cost of a one-megawatt solar generating system is 100 million baht, and the government needed a 80 billion baht budget to support the 800 communities.
The Anti-Corruption Organisation of Thailand recently petitioned the National Council for Peace and Order to suspend the project due to fear of corruption.