The Transport Ministry may seek Administrative Court approval to delay its compensation payment of 37 billion baht to Hopewell (Thailand), according to Worawut Mala, acting governor of the State Railway of Thailand (SRT).
“The laws can open ways for such an approach,” said Mr Worawut, who is working on a special committee negotiating compensation in the case.
The Supreme Administrative Court on April 22 ordered the ministry and the SRT to pay compensation for losses incurred by the company after Thai authorities terminated a major transport infrastructure contract two decades ago.
The court ordered payments to be made within 180 days. The payment covers 11.88 billion baht, plus an interest rate of 7.5% a year, or around 37 billion baht in total.
However, the SRT is in no position to comply with the order since it is more than 100 billion baht in debt.
Early this month, Somsak Chitipalungsri, chairman of the Thammasat University's Law Association, suggested the government seek a new trial in the case, citing a law governing the establishment of the Administrative Court.
Mr Worawut said that would be up to the ministry and the SRT board to decide. Those who would be held accountable for the damages would also be determined.
The project comprised a 60-kilometre elevated railway as well as a tollway in Bangkok. Foundation pillars of the project will be removed by the SRT while Hopewell will take back the remaining utility structures, Mr Worawut said.
The contract for the country's first urban rail project was signed with the Hong Kong-based conglomerate Hopewell on Nov 9, 1990, when the late Montri Pongpanit was transport minister in the Chatichai Choonhavan’s government.
When the 30-year concession was granted in 1990, investments in the project totalled about 80 billion baht.
Construction began in 1990 but was suspended in 1992. The project ground to a halt amid legal wrangling in 1997, when it was just over 10% complete during the deadline period.
The contract was officially terminated on Jan 27, 1998 by the Chuan Leekpai-led Democrat government, when Suthep Thaugsuban was the transport minister.