SRT Dark Red Line: Rangsit

[Wisarut]

Big Chad Canceling the bidding for the construction of Bangsue Central due to political animosity against STECON which has a connection with PJT along with the medium price for bidding does not corresponding to the inflation - using the price of 2009 instead of price of 2012 after raising the daily wage to 300 Baht a day.
STECON - Unique insisting to use 31,170 Million Baht but the Government want the contractor to accept 27,344 Million Baht or SRT will be in the hot water ....

http://www.mcot.net/cfcustom/cache_page/357386.html
http://www.ryt9.com/s/iq05/1389829

[Yappofloyd]

^Not such a bad idea given how prolonged the negotiations have been. If they cannot agree on a price then just reopen the bidding as the delay affects both the Taling Chan line and the new Bang Sue Terminal.

Ministry tells SRT to scrap Red Line bidding process, BKK Post, 25/04/2012
The Transport Ministry has scrapped the bid for the construction of an electric railway section from Bang Sue in Bangkok to Rangsit in Pathum Thani province because the lowest quote is too high. The ministry ordered the State Railway of Thailand (SRT) to end the bidding contest to select a contractor for the 26km section of the Red Line electric railway, Deputy Transport Minister Chatt Kuldiloke said yesterday.

This was because the SRT set a budget for construction at 27.34 billion baht but the lowest negotiated quote, from the SU Joint Venture comprising Sino-Thai Engineering & Construction Plc and Unique Engineering and Construction Plc came in at 31.17 billion baht. Pol Lt Gen Chatt said that the bidding process had been delayed for over a year and it would be inappropriate for the SRT to have to increase the budget substantially to meet the quotation. However, the deputy minister said that before the next round of bidding takes place, the project budget would be adjusted to reflect present costs, especially the high cost of oil.

He added that the initial delay also prevented the SRT from opening another section of the Red Line from Bang Sue to Taling Chan because electric trains and a signalling system for the section had been included in the Bang Sue-Rangsit project.

SRT Governor Yutthana Thapcharoen said the Japan International Cooperation Agency (Jica) is fining the SRT 1.8 million baht a month for failing to accept its loan to spend on the Bang Sue-Rangsit project. So far, the fine has mounted up to 37.4 million baht. He said the SRT would ask Jica to waive the fine because it partly caused the delay in the lending process in the first place.

[The Enforcer!]

^Pol Lt Gen Chatt said that the bidding process had been delayed for over a year and it would be inappropriate for the SRT to have to increase the budget substantially to meet the quotation. However, the deputy minister said that before the next round of bidding takes place, the project budget would be adjusted to reflect present costs, especially the high cost of oil.

Surely "inappropriate to increase the budget" does not balance with "budget adjusted to reflect present costs"?

The Enforcer!

[Wisarut]

SRT Governor refuses to Scrap the bidding for the Red line Commuter project form Bangsue to Rangsit - since they can raise the prices up to 10% or by 7500 Million Baht

http://www.manager.co.th/Business/Vi...D=955000005223

[Yappofloyd]

Surely "inappropriate to increase the budget" does not balance with "budget adjusted to reflect present costs"?

The Enforcer!

Not to defend generally poor reporting but you have seemingly, unintentionally taken words out of context; "inappropriate for the SRT to have to increase the budget substantially to meet the quotation". The key word you left out was "substantially". Gives quite a different meaning.

Thereafter, it seems reasonable in the context to write, "before the next round of bidding takes place, the project budget would be adjusted to reflect present costs, especially the high cost of oil." I take the overall meaning to mean that the budget will be increased for the next round of bidding, however just not substantially.

Obviously, reading between the lines there is a degree of negotiation taking place between the SRT and new bidders as well as underlying politics given the previous winning bidders political affiliations.

[Yappofloyd]

SRT have updated the Project page as of the 14th, http://www.railway.co.th/resultproje...edline=5504101 but really nothing new to add while this tender/contract struggle is ongoing.

Reportedly, the issue of delay with the project was discussed by officials during the recent PM visit to Japan.

[Yappofloyd]

State committed to mass transit, Bkk Post, 23/05/2012
The government is committed to investing 1.64 trillion baht to develop 10 mass transit routes and logistics-related projects over the next seven years.Transport Minister Jarupong Ruangsuwan yesterday proposed infrastructure and logistics development plans through 2018 to Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong. Mr Kittiratt promised to give full financial support to the projects.

Mr Jarupong said the two ministries will later establish a joint committee to refine the proposals and raise funds for development. The two ministries agreed the government needs to speed up investment for the Asean Economic Community. The remaining 1 trillion baht will be spent on air, water, and rail transportation infrastructure. This will include the expansion of Suvarnabhumi airport and the development of dual-track and high-speed trains.

The government said recently it would scrap bids for Red Line work to ensure it receives 70 billion baht from the Japan International Cooperation Agency (JICA) to finance the project. The State Railway of Thailand's (SRT) board earlier decided to scrap bids for the third Red Line contract, involving electrical and signalling-system work worth 26.7 billion baht, after four bidders failed to qualify.

The SRT, which supervises the Red Line, faces severe problems in undertaking the project, especially the need to remove public utilities along the route.

[Yappofloyd]

May be getting close to a deal on this long running saga with SU (STEC & Unique) offering to lower the price from 31 billion to 29 billion. That would present a saving of 5 billion to the SRT from the original winning bid price of 34billion which was subsequently lowered to 31 billion.
See Stock news (in Thai)

[Wisarut]

Cabinet approved the 1st package of Red line commuter - the construction of Bangsue Central at the price tag of 29.826 Billion Baht down from the initial price of 34.650 Billion Baht ...

Without the approval for the construction of Bangsue Central, the construction of the track to Rangsit and electrification from Bangsue to Talingchan and Bangsue to Rangsit cannot go further

http://www.mcot.net/cfcustom/cache_page/384094.html

[Wisarut]

MOT going to invest on 767 km double tracking at 98,315 Million Baht along with the following new lines with total price tags of 79,586 Million Baht:

1) Denchai - Chiang Rai - Chiang Khong
2) Ban Phai - Roy Ed - Mukdahan - Nakhon Phanom
3) Aranyaprathet - Poipet

New Container Yard station at Natha [Nong Khai] with a price tag of 969 Million Baht and New Container transfer station at Chiang Khong with the price tag of 1522 Million Baht

High Speed also included with a price tag of 481,066 Million Baht:
1) Bangsue Central - Nakhon Ratchasima at 256 km - 96,826 million Baht
2) Bangsue Central - Hua Hin at 225 km - 82,166 million Baht
3) Bangsue Central - Chiang Mai at 745 km - 229,809 million Baht
4) Makkasan Central - Rayong at 221 km - 72,265 million Baht [extension of Airport Link] - with additional passing loops on the existing line

Construction of Red Line commuer [bangsue - Rangsit], Phaholyothin extension [Mochit - Saphan Mai] and Pink Monorail [Nonthaburi Government Complex - Minburi]
will be started in 2013 and done by the end of 2020.

This has to be back up by Special Loan Act of 2 Trillion Baht
http://its.in.th/index.php/component...ws/9842-16-i--

[Yappofloyd]

Cabinet approved the 1st package of Red line commuter - the construction of Bangsue Central at the price tag of 29.826 Billion Baht down from the initial price of 34.650 Billion Baht ...

Without the approval for the construction of Bangsue Central, the construction of the track to Rangsit and electrification from Bangsue to Talingchan and Bangsue to Rangsit cannot go further
http://www.mcot.net/cfcustom/cache_page/384094.html

Yes finally this has been resolved after 15 months of delay and we may finally see some preliminary work start around the end of the year.

[Wisarut]

After 15 Month of delays, the fight contract fo Bangsue central is about to be signed after cutting down the bidding from 34.650 Billion Baht to 29.826 Billion Baht - After the clandestine lobbying via Ai Watthana Mueangsuk by Sia Noo (Anuthin Charnweerakul) - Furthermore, different factions within PT men want to get a share of the project to Contract 2 to be awarded to Italian Thai Development PCL and Contract 3 is up to the skill of bidding by Ch. Karnchang PCL
Note: Matichon has blamed SRT Board for the 15 month delays which require the settlement by Sia Noo's Lobbying
http://www.prachachat.net/news_detai...&subcatid=0700

[Wisarut]

After 15 Month of delays, the fight contract fo Bangsue central is about to be signed after cutting down the bidding from 34.650 Billion Baht to 29.826 Billion Baht - After the clandestine lobbying via Ai Watthana Mueangsuk by Sia Noo (Anuthin Charnweerakul) - Furthermore, different factions within PT men want to get a share of the project to Contract 2 (the construction of tracks and stations) to be awarded to Italian Thai Development PCL and Contract 3 (electrification and rolling stocks) is up to the skill of bidding by Ch. Karnchang PCL

Note: Matichon has blamed SRT Board for the 15 month delays which require the settlement by Sia Noo's Lobbying
http://www.prachachat.net/news_detai...&subcatid=0700

[Wisarut]

JICA has approved the 1st contract (Bangsue Central Construction) - Contract will be signed on 31 August 2012 - this has broken the deadlock which has delayed the project for 16 months
http://www.thannews.th.com/index.php...-02&Itemid=524



Video presentation of Red line commuter

[Wisarut]

Bidding for the Second Contract - the way from Bangsue to Rangsit with the total distance of 21 km along with the stations is done:

Italian Thai Development PCL (ITD) offering the lowest price at 24,102,324,009 Baht (VAT included) - Winner but still Higher than 19 billion Baht prices - need further negotiations. Need to put the price at 20,900 Million Baht (VAT included) - Will have to negotiate for a month - If success, their bidding will need both JICA and Cabinet endorsement ... before signing the contract

Ch. Karn Chang PCL (CK) offering the price at 24,550,449,525 billion Baht (VAT Included)
http://www.mcot.net/cfcustom/cache_page/409302.html
http://www.thannews.th.com/index.php...176&Itemid=524
http://thaiinsider.info/news2012b/th...09-05-07-13-08

SRT and contractors worried whether the cabinet will allow SRT to extend the medium price to allow the contract signing since the government going to ask SRT to negotiate with ITD first before asking for the raising of medium price as the base to calculate the maximum allowable price up from 19 billion Baht ... Worse, 300 Baht daily wage will have significantly detrimental effect on the contractor as the wages constitute 4% of cost while the 10% rising cost of construction materials will hurt the contractor even more
http://www.manager.co.th/Business/Vi...=9550000109446