ITD ousted from 7 billion baht EGAT contract: a closer look
EGAT says contract was awarded through special procurement method
A recent controversy surrounding a 7.25-billion-baht coal mining and hauling contract at Mae Moh Mine awarded to Sahakol Equipment Pcl (SQ) has raised questions about transparency and fairness in public procurement processes.
The Electricity Generating Authority of Thailand (EGAT) has clarified that the contract was awarded through a special procurement method, inviting experienced companies to submit proposals.
However, Italian-Thai Development Pcl (ITD), a major player in the construction industry, was disqualified from the bidding process because of several shortcomings in its proposal.
Key Issues Raised by EGAT:
- Lack of Machine Inspection Report: ITD's proposal failed to provide a report on the inspection of the main mechanical condition of its earthmoving machinery, as required by the terms of reference (TOR).
- Missing Reconditioning Plan: The company did not submit a reconditioning plan for its soil conveyor and soil spreader, a crucial requirement for ensuring optimal performance.
- Inconsistent Operation Plan: ITD's proposed operation plan for mining outside the designated work area did not align with EGAT's specific mine plan.
EGAT emphasised that these shortcomings directly violated the TOR's conditions, leading to ITD's disqualification.
The cancellation of the initial procurement and the subsequent re-bidding process have raised concerns about transparency. Some observers argue that this could potentially open the door to favoritism and corruption.
It is worth noting that SQ, the company awarded the contract, has notable shareholders, including former Thai prime minister Prayut Chan-ocha and former Bank of Thailand governor M L Pridiyathorn Devakul.
While these connections do not necessarily imply wrongdoing, they highlight the potential for conflicts of interest and public scrutiny.
As the investigation into the matter continues, it remains to be seen whether the re-bidding process will be conducted fairly and transparently. The outcome of this case could have significant implications for future public procurement projects in Thailand and the broader Southeast Asian region.
