The board of the State Railway of Thailand has decided to extend the deadline of the construction of the Red Line suburban train project from Bang Sue to Rangsit after the SRT has failed to turn over the land to the construction consortium within the specified period.
SRT acting governor Anont Luangboriboon said Wednesday that the new extension period would be shorter as the SRT had already granted a 150-day extension period to the consortium to compensate for the impacts caused by a rise in the minimum wage.
Construction of the Red Line project is separated into two contracts. The first contract, worth 29.6 billion baht, involves the construction of the terminal in Bang Sue, the electric train maintenance centre and the maintenance centre for long-haul train carriages. The consortium includes Sino-Thai Engineering and Construction or STEC and Unique Engineering. The board has agreed to extend the construction deadline by 800 days up to the expiration of the contract in 2019.
The second contract, worth an estimated 23.9 million baht, involves the construction of 20-km rail track from Bang Sue to Rangsit implemented by Italian-Thai Development Plc. The board has agreed to extend the construction deadline by 200 days up to the expiration of the contract next year.
As for the 800-900 million baht stupid fee claimed by the construction firms for the SRT’s delay in handing over the land for the project to them, Mr Anont said the SRT would assess the actual amount of damage caused to the companies by the delay in land handover.
Although the SRT is required to pay the compensation as stipulated in the contracts, the SRT acting governor noted that the contract does not specify when the compensation is to be paid, hence, there is enough time for negotiations to settle the issue.
Source: Thai Public Broadcasting Service (Thai PBS)