The Bangkok Mass Transit Authority (BMTA) on Wednesday signed a 4.26 billion-baht contract with a joint venture, SCN-CHO, that will supply 489 buses running on natural gas for vehicles (NGV).
The signing brings an end to long delays since the project was first raised, and which underscores the BMTA's desire to obtain environmentally friendly NGV buses.
In April the BMTA scrapped a 3.3-billion-baht contract with Bestlin Group when it failed to deliver the buses on time after the Customs Department suspected it of dodging import taxes.
Transport Minister Arkhom Termpittayapaisith appeared relieved during the contract signing ceremony. "As you may know, it has taken more than 10 years to make the NGV-bus procurement happen and everyone has been waiting for the BMTA's new buses," Mr Arkhom told the media.
The BMTA board on Dec 18 endorsed the bidding results when SCN-CHO -- a joint venture between Scan Inter Plc (SCN) and Cho Thavee Plc (CHO) -- emerged as the sole remaining bidder. Ten companies pulled out of the race for the 4.02-billion-baht city bus project.
Apart from supplying the NGV buses, the company will provide a full 10-year-maintenance service, said Deputy Transport Minister Pailin Chuchottaworn.
No sooner had the BMTA revealed its decision to award the natural gas-powered bus procurement contract to SCN-CHO, a corruption watchdog group called on the BMTA to review its decision.
Korn Rupobol, head of the People's Network Monitoring Corruption in the State Sector, submitted a petition to the BMTA board, complaining that the price offered was higher than in previous bidding.
Mr Korn said Cho Thavee was earlier part of another consortium which bid for the contract in 2015. However, the BMTA rejected the deal and the two parties have since taken each other to court.
Cho Thavee was at that time part of the JVCC consortium, which won a 2015 contract for the buses worth 1.7 billion baht, and 2.29 billion baht for a 10-year maintenance deal.
The BMTA later scrapped the bidding when it discovered the agency's terms of reference contradicted the 1996 Administrative Procedure Act.
Cho Thavee controlled half the consortium and Khon Kaen Cho Thavee (1993) the rest. The company filed a lawsuit demanding BMTA pay 1.5 billion baht compensation. The case is pending in court after the BMTA appealed.
Mr Pailin, however, insisted the BMTA strictly followed the Transport Ministry's regulations on procurement, in which the BMTA has the right to approve the results of bidding in the event the best price offered is higher than the median price set for bidding but not exceeding a 10% range.
Suradech Taweesaengsakulthai, president and CEO of Cho Thavee Plc, said the first batch of 100 NGV-buses will be delivered in March, another 120 buses in 100 days, another 100 vehicles in 120 days, and the rest in 180 days as required by the contract.
Mr Suradech said his company imports parts from a Chinese company called BLK for assembling the buses in Thailand.
Scan Inter Plc president Ritthi Kitphiphit said SCN-CHO agreed to shoulder the maintenance costs. Scan Inter Plc has been operating full NGV business for more than three decades and is considered the largest operator in Thailand while recognised as "king of NGV in Asean", Mr Ritthi said.