Engineers to outline reasons water mega-project could join ranks of other failures
The Nation 12 February 2013
Engineers from academia, the government and business will meet tomorrow to explain why the government's Bt350-billion water-management plan could face the same fate as the doomed Hopewell elevated-transport project, the Klong Dan wastewater-treatment project.
“We want to see the project materialise, but we also fear its improbability,” Suwat Chaopreecha, president of the Engineering Institute of Thailand, said in a phone interview with Krungthep Turakij yesterday. “There are details to discuss that are not within our power. Still, as a professional organisation, we want to send the government a warning. If it proceeds with this, it will need to assume responsibility” for failure.
Four major concerns on project implementation will be discussed at the conference to warn the government of possible failure.
First is the project framework. Bidders are invited to come up with the construction framework, while the project should be designed according to a feasibility study, responses from the community and environmental impacts.
Second, six bidders have been shortlisted for the 10 construction modules. Three companies have been chosen to vie for each module and their construction techniques and prices will decide the winner of the contracts.
“As these companies come up with different plans, what will be the criteria to pinpoint which is the best technique and the best price?” Suwat said.
Third, the construction scale is big and there is no clarity over the legal process in case the contractors need to modify construction plans or raise the price. In a conventional project, engineering and design, project supervision and construction are performed by three parties. Now, when the contractors assume both the design and construction roles, there is no clear approach to price adjustment.
Fourth, there are 10 modules for six companies, meaning one firm might win two modules.
“How could that happen when the areas of work cover different parts of the country, from the North to South and Northeast? We are giving foreign contractors a huge responsibility, and how much we can trust them? We have seen that improper engineering has led to the failure of three government projects – Hopewell, Klong Dan and police stations.”
Bid rigging is also a possibility, but that is less important for the time being, Suwat said.
The Bangkok Elevated Road and Train System, better known as the Hopewell Project after its main contractor Hopewell Holdings of Hong Kong, was abandoned in the late 1990s. It was just recently that the government resolved to demolish the Hopewell columns along Vibhavadi Road.
Because of a poor feasibility study, the Klong Dan project also failed to create a wastewater treatment plant for all of Samut Prakan.
The police-station project has shown little progress as one company is in charge of rebuilding more than 300 facilities.
The Bt350-billion Master Plan for Water Management
There are 10 modules for the government’s water-management and flood-prevention structures in the Chao Phraya River basin and 17 other river basins nationwide.
The six bidders are Korea Water Resources Corporation, Thai-Japanese Joint Venture, ITD-Power China Joint Venture, Team Thailand Joint Venture, Summit SUT Joint Venture and Loxley Consortium.
Module 1: Construction of suitable and sustainable reservoirs in the Ping, Wang, Yom, Nan, Sakae Krang and Pasak river basins worth Bt50 billion.
Contenders are Korea Water Resources Corp, Thai-Japanese Joint Venture and ITD-Power China Joint Venture.
Module 2: Land use, city planning and city protection area worth Bt50,000.
Contenders are Korea Water Resources Corp, Thai-Japanese Joint Venture and ITD-Power China Joint Venture.
Module 3: Construction of water-retention areas (monkey cheeks) and improvement of agricultural and irrigated land in upper Nakhon Sawan and Ayutthaya that will be used to retain run-off worth Bt60,000.
Contenders are Korea Water Resources Corporation, Team Thailand Joint Venture and ITD-Power China Joint Venture.
Module 4: Improvements to main river routes and embankments along the Ping, Wang, Yom, Nam, Chao Phraya, Sakae Krang, Pasak and Ta Chin worth Bt7 billion.
Contenders are Korea Water Resources Corporation, Thai-Japanese Joint Venture and ITD-Power China Joint Venture.
Module 5: Construction of a floodway and flood-diversion channel to drain 1,500 cubic metres of water per second worth Bt120 billion.
Contenders are Korea Water Resources Corporation, Thai-Japanese Joint Venture and ITD-Power China Joint Venture.
Module 6: Improvements to database system and disaster warning and prediction system in the Chao Phraya River basin worth Bt3 billion.
Contenders are Korea Water Resources Corporation, Loxley Consortium and ITD-Power China Joint Venture.
Module 7: Construction of suitable and sustainable reservoirs in 17 river basins worth Bt12 billion.
Contenders are Korea Water Resources Corporation, Thai-Japanese Joint Venture and ITD-Power China Joint Venture.
Module 8: Land use, city planning and city protection area in 17 river basins worth Bt10 billion.
Contenders are Korea Water Resources Corporation, Summit SUT Joint Venture and ITD-Power China Joint Venture.
Module 9: Improvements to main river routes and embankments along 17 river basins worth Bt10 billion.
Contenders are Korea Water Resources Corporation, Thai-Japanese Joint Venture, ITD-Power China Joint Venture.
Module 10: Improvements to database system and disaster warning and prediction system in 17 river basins.
Contenders are Korea Water Resources Corporation, Team Thailand Joint Venture and ITD Power China Joint Venture.
Source: Water and Flood Management Commission
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