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Mon, June 27, 2005

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Firms face fines as new airport is delayed

Published on June 27, 2005

Construction of the Suvarnabhumi Airport has been delayed by 6.95 per cent as of April, an Airport of Thailand Plc source said yesterday.

Nine construction contractors face being fined for the delay including ITO group, which is responsible for the construction of passenger buildings worth Bt15 billion. Construction was scheduled for completion on March 31 but has been delayed by 9.26 per cent due to hold-ups with interior decoration and the security system as well as passenger-bags checking.

Other delays include the construction of concourse buildings worth Bt21 billion, previously scheduled for completion on March 31 this year. Work is 10.39 per cent delayed because the fibre roof leaks and because of delays in the construction of the east and west terminals.

Airports of Thailand Plc submitted a letter dated May 18 notifying ITO of the Bt2.5 million-per-day fine. Airports of Thailand will deduct the fine from the money it has to pay ITO for construction costs.

ITO appealed to extend the contract to September 29 this year, claiming that the delay is a result of the company being given more work to do than was agreed in the contract. Airport of Thailand will meet to decide whether to extend the contract.

Theerawat Srichatrapimuk, adviser to the transport minister, said the corruption allegation over the purchase of bomb scanners for the airport has directly affected construction.


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