Cabinet delay holds up calling of contract bids

General News - Tuesday December 11, 2007

MASS TRANSIT / PURPLE LINE RAILWAY

Cabinet delay holds up calling of contract bids

AMORNRAT MAHITTHIROOK

The delay in cabinet approval for a land expropriation budget for the Purple Line railway project is holding up the sale of bidding terms to potential contractors, according to the Mass Rapid Transit Authority (MRTA).

MRTA governor Prapat Chongsanguan said pending a cabinet resolution the agency could not sell bidding terms because it could not schedule the delivery of construction sites to the contractor.

If bidding terms are sold without the schedule, there can be legal disputes with the contractor, he said. Besides, the contenders need the land delivery schedule to estimate costs.

Mr Prapas said the cabinet earlier ordered the Finance Ministry, the Transport Ministry, the Budget Bureau and other agencies to estimate the land expropriation costs for the 32-km Purple Line from Bang Sue in Bangkok northwestward to Bang Yai in Nonthaburi.

The land expropriation committee headed by Surachai Thansitthipong, deputy permanent secretary for transport, estimated the expropriation costs at 9.21 billion baht. The MRTA planned to sell the bidding terms next month.

The construction cost is set at 31.2 billion baht and the consultancy fee at 1.2 billion baht.

The Japan Bank for International Cooperation (JBIC) has agreed to provide loans to the project. The first lot of loans comes to 62.4 billion yen, or 18.7 billion baht.

By : Bangkok Post