Duty-free bid rules panel to wrap soon

Duty-free bid rules panel to wrap soon

Deputy Prime Minister Somkid Jatusripitak expects a panel set up to consider whether the bidding for the duty-free concession to wrap up its findings within two weeks. (Post Today photo)
Deputy Prime Minister Somkid Jatusripitak expects a panel set up to consider whether the bidding for the duty-free concession to wrap up its findings within two weeks. (Post Today photo)

A panel to consider whether the bidding for the duty-free concession falls under the Public-Private Partnership (PPP) Act is expected to present its findings within two weeks, Deputy Prime Minister Somkid Jatusripitak said.

The panel, set up on Friday and chaired by Prime Minister Prayut Chan-o-cha, will also look into whether the auction for non-duty-free commercial operations at Suvarnabhumi, Phuket, Hat Yai and Chiang Mai airports comes under the newly amended PPP Act.

Mr Somkid said the panel had been briefed to act swiftly so that Airports of Thailand (AoT) has enough time to follow the PPP process if necessary.

"Don't worry about the auction. AoT can comply with the PPP Act because the bidding process only began on March 29," he said.

The new PPP law, which came into effect on March 10, requires the chairmen of the Thai Chamber of Commerce, the Federation of Thai Industries and the Thai Bankers' Association to be included as members of the PPP committee. It also requires the regulations and mechanisms relating to the bidding process to be made more concise, transparent and inclusive.

The AoT has decided to split the bidding of duty-free shops at Suvarnabhumi and three airports in the provinces into two contracts.

On March 29, its board caved in to pressure after critics complained about its single-concession policy. Originally, the AoT was adamant on packaging the rights at all four airports together.

However, the board decided to divide the bidding into two contracts. Nitinai Sirismatthakarn, president of the AoT said the first contract is for Suvarnabhumi while the second is for the three provincial airports after "the AoT followed advice from all parties to prevent a company from holding a monopoly".

Terms of reference for the Suvarnabhumi auction are on the AoT's website while the ToR for the other three are scheduled to be posted this week.

Mr Nitinai said the winners must ensure they select high-quality products and sell them at competitive prices in order to elevate airport retail in Thailand.

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