Top court upholds previous ruling, endorses bid for MRT Orange Line
Supreme Administrative Court gives go-ahead to long-delayed project, dismisses BTS’s malfeasance accusation against contract winner BEM, MRTA
The Supreme Administrative Court ruled on Wednesday to endorse the bid on the Mass Rapid Transit Authority (MRTA)’s Orange Line so the contractor can complete and operate the long-delayed project.
The court upheld the Central Administrative Court’s ruling in favour of MRT and its bidding committee while dismissing the petition filed by the Bangkok Mass Transit System Plc (BTSC).
In its petition, BTSC alleged that the bidding company and MRTA, the first and second defendants, had committed malfeasance by changing the terms of reference for the bidding of the project. The bid included the construction of the western section of the MRT Orange Line and the installation of the electric operating system for the entire route, including the eastern section from the Thailand Cultural Centre to Minburi, which has already been built.
The BTSC alleged that the bidding committee and MRTA had committed malfeasance by cancelling the first round of bidding and announcing new terms of reference on May 24, 2023, by changing the qualification of bidders from the original TOR announced in July 2020.
The Central Administrative Court had initially ruled in favour of the MRT and bidding committee, saying the change in TOR was made in good faith to protect the national interest. The BTSC appealed against this ruling.
On Wednesday, the Supreme Administrative Court said it would uphold the ruling of the primary court as it believes the two defendants changed the qualifications of bidders and the TOR for the sake of state benefits.
The court said the changes were not made to benefit any company or favour any bidder. The changes also did not prevent the BTSC from participating in a new round of bidding either, it said.
The Supreme Administrative Court also said that the defendants had prioritised the technical abilities of bidders by changing the original TOR on July 3, 2020, so they could select a company that had the expertise to carry out the project for the ultimate benefit of the public.
The court said if a company that is not an expert is chosen for the project, it could cause irreparable damages. Hence, it said, prioritising technical qualifications was not an unlawful decision. The court also pointed out that the MRTA had held a public hearing before changing the TOR.
The MRTA launched a second round of bidding on July 27, 2022, for the 140-billion baht project with two bidders – Bangkok Expressways and Metro Plc (BEM) and Italian-Thai Development. BEM won the bid because it offered MRTA 78.29 billion baht in return for the right to operate the entire Orange Line.
An MRTA source said the agency will use the court’s ruling to seek final approval for the project by sending the draft contract to the Transport Ministry for endorsement before sending it to the Cabinet for final approval.
Once approved by the Cabinet, MRTA will sign the contract with BEM so it can install the operating section and start running trains while constructing the western section.
