Deciding the issue had a negative impact on the environment, Puttipong yesterday ordered the contractor to suspend the depot construction and move the project elsewhere.

He said an official meeting between the BMA and the company would be held on Tuesday to review the contact, which states it is the company's responsibility to find a site and construct the necessary parking lots for 253 garbage trucks, truck-washing facility and wastewater treatment system.

Puttipong claimed the contractor's initial response was that they would do as the BMA requested and that the company's willingness to relocate was praiseworthy as the company had  already invested Bt200 million into the project.

He added the BMA would consider finding a new location for the project and that a solution would become clearer within the next two to three weeks, which should insure the project is not delayed.

TIP general manager Paisal Pachana said the company had not had official talks with the BMA yet, but if it was true the project had been cancelled the company would be greatly affected as 70-per cent of the construction had already be completed.

He added the BMA should be the one to find the new site, as the company had legally obtained the current location according to the contact and had received the BMA's approval.

Paisal however said the company was not considering suing the BMA because it believed both parties could find a way out.

The project - on a 31-rai plot at Soi Sai Mai 74-76 - was approved during Governor Samak Sundaravej's administration.

However, residents later complained that a garbage truck depot should not be built in the heart of community and demanded the site be moved.