Thailand gives CP Group October 15 deadline to sign $7 billion rail deal

[webfact 69,411]

Thailand gives CP Group October 15 deadline to sign $7 billion rail deal

Panarat Thepgumpanat, Chayut Setboonsarng

 

File photo

 

BANGKOK (Reuters) - Thailand has given the agro-industrial conglomerate Charoen Pokphand Group (CP) until Oct. 15 to sign an investment agreement for the 225 billion baht ($7.36 billion) high-speed train project, a senior official said.

 

Deputy Prime Minister Anutin Charnvirakul announced the deadline on Thursday, adding that CP’s bid for the project was 60 billion baht (nearly $2 billion) lower than competitors.

 

CP Group and 12 other companies won the bid for the project in May, beating out a consortium led by mass transit operator, BTS Group Holdings Pcl (BTS.BK).

 

Since then, the company has been negotiating with the State Railway of Thailand on terms of the agreement including land ownership.

 

“On Oct. 15, CP Group should sign the contract because if they don’t, they will be blacklisted by the government,” Anutin said.

 

He said failure to sign would mean other companies in the CP bidding group - including Bangkok Metro Expressway and Metro Pcl (BEM.BK), Italian Thai Development Pcl (ITD.BK), CH Karnchang Pcl (CK.BK) and China Railway Construction (601186.SS) - could also be affected in future government projects.

 

The high-speed train project, a private-public partnership, will connect Thailand’s main international airport Suvarnabhumi to low-cost carrier airport Don Muang and U-Tapao airport in eastern Thailand.

 

“I think there will not be a problem in signing,” acting governor of State Rail of Thailand, Worawut Mala, told Reuters.

 

There were land transfer concerns because of utility infrastructure that involved other agencies, but after meetings there are no problems, he said, adding that the government is ready to support the project.

 

CP Group, owned by Thai billionaire Dhanin Chearavanont, has businesses in agriculture through CP Foods Pcl (CPF.BK), telecommunications in China-mobile backed True Corporation Pcl (TRUE.BK) and Ping An Insurance Group (601318.SS).

 

(Reporting by Panarat Thepgumpanat and Chayut Setboonsarng; editing by Jason Neely

Our Standards:The Thomson Reuters Trust Principles.)

 

-- © Copyright Reuters 2019-10-04

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[rkidlad 30,836]

37 minutes ago, webfact said:

“On Oct. 15, CP Group should sign the contract because if they don’t, they will be blacklisted by the government,” Anutin said.

Desperate times. 

[Katipo 4,848]

From Chicken -> 7/11s -> Television -> Telecoms -> Constructing High Speed Railways. This is either the most incredibly able and impressive company in the history of companies, or, heaven forbid, it just knows which side of the bread to butter.

[zhounan 762]

CP is one of the elité families of BKK, the 1% who possess the 90% of money in the Land. They decide when, how much invest in Thailand. 

[legend49 5,365]

adding that CP’s bid for the project was 60 billion baht (nearly $2 billion) lower than competitors.

 

Why would you accept a $2 billion lower quote when competitors will pay the tender price? Someone is pissing in someones pocket?

[samjaidee 571]

26 minutes ago, legend49 said:

adding that CP’s bid for the project was 60 billion baht (nearly $2 billion) lower than competitors.

 

Why would you accept a $2 billion lower quote when competitors will pay the tender price? Someone is pissing in someones pocket?

The tender was to submit a quote fulfilling the terms of the contract.

 

One of the reasons they were selected was because their quote was $2 billion less, thereby saving the government that amount.

[Classic Ray 2,113]

I think part of the delay is caused by them wondering how they can possibly deliver the project for that low amount of money.

 

The other bid was technically superior, better researched, within the Terms of Reference, and realistically priced for the amount of work necessary.

 

Will be interesting to see if CP can pull off obtaining the Makkasan development jewel  and still deliver the rail project.

[smutcakes 7,977]

Is this not a massive and obvious conflict of interest, that Anutin whose family own Sino Thai, who also bid on the project and lost to CP Group is now in charge of this? Would be nice for Sino Thai and Anutin if they were blacklisted.

[fforest1 5,612]

9 minutes ago, Classic Ray said:

I think part of the delay is caused by them wondering how they can possibly deliver the project for that low amount of money.

 

The other bid was technically superior, better researched, within the Terms of Reference, and realistically priced for the amount of work necessary.

 

Will be interesting to see if CP can pull off obtaining the Makkasan development jewel  and still deliver the rail project.

Maybe they took a look at the cost to build the California high speed rail and thought....Hey we are going to be building this for chump change..... 

[Fex Bluse 7,734]

CP is one of the most influential families in Thailand. 

 

And they will do as they please. 

[KKr 1,568]

So, CP is a specialist railroad construction enterprise now, high-speed, I say !
Well done, especially since they are pricing even under the Chinese competitors that are famous for undercutting local contracters.

anyone knows how many kilometers track that contract is for by the way ?

[FinChin67 691]

CP Group, owned by Thai billionaire Dhanin Chearavanont, has businesses in agriculture through CP Foods Pcl (CPF.BK), telecommunications in China-mobile backed True Corporation Pcl (TRUE.BK) and Ping An Insurance Group (601318.SS).

 

Again, China backed and Chinese money... I bet all the agriculture business is with Chinese as well... Another Beijing puppet.

[Fex Bluse 7,734]

10 minutes ago, FinChin67 said:

CP Group, owned by Thai billionaire Dhanin Chearavanont, has businesses in agriculture through CP Foods Pcl (CPF.BK), telecommunications in China-mobile backed True Corporation Pcl (TRUE.BK) and Ping An Insurance Group (601318.SS).

 

Again, China backed and Chinese money... I bet all the agriculture business is with Chinese as well... Another Beijing puppet.

They are all cousins of course. 

The same effectively. 

[RichardColeman 22,879]

41 minutes ago, Classic Ray said:

I think part of the delay is caused by them wondering how they can possibly deliver the project for that low amount of money.

I think they are working out how to get in enough Myanmar workers and block expensive thais

[Chang_paarp 8,159]

My guess is CP are struggling to get finance. Who would lend to such a noted transport and infrastructure powerhouse? On a project that will make so much money as a PPJV. Their only hope is an eight page contract like Hopewell.