Construction has begun on a number of megaprojects in Thailand with the total budget for completing these coming in at THB1.94 trillion. Several other projects are currently in the bidding process with the estimated investment value of these being approximately THB1.7 trillion. These projects will be completed by private sector entities.
Two megaprojects at Laem Chabang Port
The government is planning to upgrade Laem Chabang Port with Coastal Terminal A0, a new pier, and Single Rail Transfer Operator (SRTO), a rail service which will connect to the ship cargo area. The two projects will significantly enhance cargo-handling abilities at the port. The two projects have a combined budget of THB3.86 billion. The contractors who won the bidding contest from the Port Authority of Thailand are Nawarat Patanakarn PLC, who will be working on Coastal Terminal A0, and ITALTHAI, who is taking charge of the SRTO project. Both megaprojects are already underway with things well ahead of schedule.
Suvarnabhumi Airport Development Project Phase 2
Airports of Thailand Public Company Limited aims to increase Suvarnabhumi Airport’s capacity from 45 to 60 million people per year and will do this by renovating and expanding several areas of the facility. The Suvarnabhumi megaproject is divided into 4 main parts: concourse building No.1, passenger terminal, design and construction of public utility system and project management consultant. The total budget of the megaproject is THB62.5 billion and was approved by the cabinet in August of 2010.
The whole project is split into seven sub-constructions, three of which are already in the hands of contractors including Italian-Thai Development, SG and Interlink and SCS Consortium. The contracted budget for these sub-constructions is a combined THB14.9 billion.
Italian-Thai Development will work on B2, B1 and G floors of the Concourse Building No.1, the runway adjoined to the Concourse Building No.1 and the south tunnel extension (structure and engineering system). The contracted budget for that project is THB12 billion including seven percent VAT. SG and Interlink will work on design and construction of public utility system, which as a contracted budget of THB1.9 billion including seven percent VAT. SCS Consortium will work on managing the whole project on a contracted budget of THB879 million.
In addition to this, the total bidding prices of the three contractors is lower than the benchmark-bidding price by THB1.65 billion. The signing ceremony of the three contractors was held on 25th August 2016, where the chairman was Dr. Somkid Jatusripitak, a Deputy Prime Minister of Thailand.
The remaining four sub-constructions are as follows:
• Concourse Building No.1’s 2nd-4th floor and south tunnel extension (minor system), expected to begin by November 2017
• Design and construction work of east terminal extension, aviation office building and east parking building, expected to begin by March 2017
• Automated People Mover, expected to begin by January 2017
• Baggage Handling System (BHS) and Explosives Detection Systems (EDS), expected to begin by August 2017.
Suvarnabhumi Airport’s second phase development is expected to be completed by November 2019.
Consumers’ confidence along political transition
This year can be seen as the year of bidding contests with several megaprojects from the public sector being up for grabs. This will lead to huge investments from the private sector next year. The stability and efficiency of how the government runs these megaprojects will have a significant impact on consumer confidence moving forward. If the consumer confidence rises steadily in time, it is likely that there will be another round of mega-investments from the private sector in 2018.
