The Thai Cabinet approved results of the selection of four bidders for the design and construction of sustainable water resource management and flood prevention systems in Thailand.
The results of the selection were submitted by the Water and Flood Management Commission, chaired by Deputy Prime Minister Plodprasop Suraswadi.
The four bidders are
- ITD Power China Joint Venture
- Korea Water Resources Corporation (K Water)
- Loxley Joint Venture
- Summit SUT Joint Venture.
The Cabinet approved 284.75 billion baht for the design and construction, which is part of the 350-billion-baht water resource management and flood prevention scheme. The four bidders are required to act in compliance with their negotiations with the selection committee and the terms of reference.
During the price negotiations, the bidders agreed to lower their prices by 6.1 billion baht.
They will carry out nine modules, comprising 10 projects estimated at 291 billion baht. Two types of consulting firms will be hired at 8.73 billion baht to help manage and supervise the design and construction for a period of five years. They are the Project Management and Engineering Consultant and the Project Supervision Consultant. It is expected that bidding for the consultants will be open within the next 15 days.
Another budget of 4.6 billion baht will be spent on the rehabilitation and water management of four water sources, namely Bueng Si Fai in Phitchit province, Bueng Boraphet in Nakhon Sawan province, Kwan Phayao in Phayao province, and Nong Han in Sakon Nakhon province.
The Cabinet also approved the plan to secure a loan of about 314.34 billion baht, in accordance with the executive decree empowering the Ministry of Finance to seek loans for the water mega-projects.
It instructed the Water and Flood Management Commission and other relevant agencies to uphold transparency in handling the water resource management scheme and to listen to the opinions of the people, with the participation of all sectors.
Deputy Prime Minister Plodprasop Suraswadi said that the next step is that a subcommittee would be formed to draft agreements with the winning bidders within a period of three months, before the agreements are signed.
He told the Office of the National Water and Flood Management Policy to visit local residents in various respective areas and hold a series of public forums to provide them with better understanding about the project and listen to their views. Their suggestions and comments would be used in drafting the agreements, so that the project would respond to the real needs of the people.
The concept for the water management project came about after Thailand suffered its worst floods in more than half a century in 2011.
According to the Rapid Assessment and Resilient Recovery and Reconstruction Planning report, prepared by the World Bank, the total damage and losses from the 2011 floods in Thailand amounted to 1.43 trillion baht, or 46.5 billion US dollars.
The manufacturing sector bore roughly 70 percent of the total damage and losses. Overall, about 90 percent of the damage and losses from the 2011 floods were borne by the private sector.
As part of its water management plan, the Government has established a single command center for unified operations in water management. The single command authority is responsible for coordinating water management work, and 17 agencies dealing with water management in the country are now working in the center.
The water management plan is divided into four phases: protection, preparation, response, and recovery.
Regarding long-term solutions, the Government had issued a royal decree empowering the Ministry of Finance to seek a loan of 350 billion baht for water management on a sustainable basis. It had worked out Thailand’s water management strategies and invited interested local and foreign consulting firms to propose plans for Thailand’s overall water management.
The Government has also adopted His Majesty the King’s advice on effective water management as guidelines for the country’s water management in the future.