Transport Ministry Threatens to Scrap Airport Terminal Contract, Blacklist Joint Venture Including China Railway

Thailand's Ministry of Transport has issued a stark warning to a joint venture responsible for the construction of a new passenger terminal at Narathiwat Airport, threatening to terminate their contract and blacklist them from future government projects due to significant delays. 

The project, valued at 639.89 million baht, faces potential cancellation as the government expresses deep dissatisfaction with the contractor's progress.

Manaporn Charoensri, Deputy Minister of Transport, disclosed that the Department of Airports, which oversees the project, had contracted CIS Joint Venture, comprising ISO Engineering Company Limited and China Railway Number 10 (Thailand) Company Limited, to build the new terminal and associated facilities. 

The contract, initiated under the previous administration on 15 March 2022, was originally slated for completion on 16 January 2025. However, the project has been plagued by delays, exacerbated by flooding in the region late last year.

"The progress of this project is utterly unacceptable," stated Deputy Minister Manaporn. "As of February 2025, only 0.64% of the work had been completed, resulting in a staggering 61.27% delay. This clearly indicates a failure to meet contractual obligations."

In an effort to rectify the situation, the Department of Airports convened a meeting with the contractors on 4 March 2025, imposing stringent conditions. 

The department stipulated that the project must achieve a monthly progress rate of 5% within two months, or face contract termination and blacklisting.

"We have given them a second chance, but their performance remains woefully inadequate," the Deputy Minister explained. "In March, the first month of the monitoring period, they only managed a 0.51% increase in progress, leaving the project 60.76% behind schedule, or 631 days late."

The Department of Airports has issued a final warning and will monitor the project's progress closely in the second month. Failure to meet the required targets will result in immediate contract termination and the blacklisting of the joint venture, effectively barring them from future government contracts.

Furthermore, the Department has instructed the project's supervising consultant to conduct a thorough inspection of the construction standards and materials used by the contractors. Any irregularities must be reported and rectified within three days.
 

"We are committed to ensuring that all government projects adhere to the highest standards," emphasised Deputy Minister Manaporn. "The quality of materials and construction is paramount, and we will not tolerate any deviations from the specified plans."

The Ministry of Transport has reiterated its commitment to upholding rigorous standards for all construction projects, ensuring close supervision and inspection by qualified engineers.