Stop using turnkey method for water projects: experts

THURSDAY, AUGUST 09, 2012
Stop using turnkey method for water projects: experts

Water and engineering experts yesterday urged the government to stop using the turnkey procurement method for largescale water and floodmanagement projects.

They worried that this method would pave the way for corruption, as has been seen in past megaconstruction projects such as the unfinished Hopewell project, an illfated wastetreatment plant and the Airport Link.
“In principle, turnkey procurement is a good method, but the government must ensure transparency,” Tortrakul Yommanak, a president of the Engineering For Thai group, said.
He was speaking at a seminar entitled “The Water and Flood Management Project worth about Bt 350 billion. Be Fast, Be Worth, and Be Transparent?” organised by the AntiCorruption Network.
To resolve water and flood problems in the long term, the government is inviting local and foreign private companies to submit conceptual plans to the Water and Flood Management Committee. The committee will select firms to run these megaprojects. The winning bidders will have to provide designandbuild services covering all of the construction.
In the past, the turnkey procurement process had been used with several megaprojects such as a wastetreatment plant worth over Bt23 billion, but this project was never finished.
Previously, the National Economic and Social Advisory Council, chaired by former prime minister Anand Panyarachun, asked the government to stop using the turnkey procurement method until it could find a way to eliminate corruption.
In a bid to ensure transparency for this megaproject, Tortrakul suggested the government borrow only 5 per cent of the total budget of Bt350 billion for water and floodmanagement projects from domestic and international financial resources.
The government should also allow other agencies including the AntiCorruption Network to examine the transparency of the projects.
Supot Towijakchaikul, secretarygeneral of the Water and Flood Management Commission, said the budget of Bt350 billion for water and floodmanagement projects is aimed at mitigating the flood problems in 32 commercial centres along the Chao Phraya River affected by floods last year. The economic damage from the flood was estimated at about Bt1.4 trillion.
He said the government would spend Bt10 billion of Bt350 billion on forest plantation and installing check dams. About Bt300 billion will be spent on floodprevention construction in urban areas along the Chao Phraya River and Bt40 billion will be spent on floodprevention projects in another 17 watershed areas.
However, he said the selection commission for conceptual plans under the Water and Flood Management Commission will hold its first meeting to draw up criteria for terms of reference (TOR) consideration on August 10.
He added that the government will launch a website to monitor the flood situation and an application for iPhones called Water4thai. The government will also give more details to the public about how Bt120 billion to be borrowed from international financial sources will be spent.