As the government unveils its THB2 trillion infrastructure plans, construction firms are eagerly checking on their resources to participate in the bidding process.
For an instance, Ch Karnchang has withdrawn its THB350 billion water management project to focus on the mega-infrastructure projects. It will also issue a debenture worth between THB3 billion and THB4 billion in Q2.
“We have limited resources and have to focus on what we can do better,” said Director Prasert Marittanaporn. “We expect a share of between 25 and 30 percent of the government’s infrastructure projects.”
Last month, Sino-Thai Engineering and Construction boosted its registered capital from THB1.18 billion to THB1.5 billion, in hopes to expand its business and participate in the government’s mega-projects.
Italian-Thai Development is also scheduled to issue a debenture in Q4, with part of the proceeds to be used in the upcoming bidding for the infrastructure projects.
According to KGI Securities, the THB2 trillion mega-projects would boost the construction firms, particularly Ch Karnchang which has already been assigned to develop the Green Line route from Baring to Samut Prakan.
Bidding is now open for the BTS Green Line extension from Mo Chit to Kukot and the Pink Line from Kai Rai to Min Buri, although most of the projects are expected to kick start later this year.
However, construction firms would likely face non-financial concerns, particularly labour shortage.
“When the government’s THB2 trillion infrastructure project begins to kick in, it will impact the supply of labour in the market, where the shortfall is already at least 200,000 workers,” noted the Issara Boonyoung, President of the Business Housing Association.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
Get daily property news in Thai and English straight to your Inbox from Thailand’s number one property website. Subscribe today for free.