The Treasury Department yesterday decided to name Vongsayam Korsang Co the winning bidder of its concession to manage and operate the main water transmission pipeline system in the East of the country, quoting a bid of 25.6 billion baht, said Deputy Finance Minister Santi Promphat.
Eastern Water Resources Development and Management Public Co or East Water has held the current concession since 1994.
The Treasury Department called for a new round of bidding ahead of the current concession's expiration in 2023. The new concession has a term of 30 years.
Mr Santi chairs the committee overseeing Treasury land that approved the granting of the concession to Vongsayam. While the commitee has 12 members in total, nine attended the meeting yesterday to consider the award of the concession.
Mr Santi said six out of the nine committee members approved the awarding of the concession, adding that Vongsayam's proposed the highest benefit to the state. Among the others, one abstained from the vote and two said they preferred to wait for the final ruling of the Central Administrative Court on this case.
Both Vongsayam and East Water took part in both the first and second new rounds of the bidding process for the new concession. The bidding round that Vongsayam has won is the second round as the first round was revoked. Mr Santi said that the revocation of the first round was due to an incomplete bidding terms of reference of the contract.
East Water petitioned the Central Administrative Court to seek an interim injunction in the case that the Treasury Department terminated the first round of bidding. However, the court dismissed East Water's request for the injunction.
Mr Santi has confirmed that the department's proposal to award the concession to Vongsayam completely complies with the department's laws.
He added that from 1994 until now East Water had paid a concession benefit to the state of 552 million baht, while the state coffers would gain 25.6 billion baht from the new concession.
Mr Santi said the department is expected to be able to sign the contract with Vongsayam in the next 3-4 months if there are no obstacles.
