Bangkok Post
November 15, 2002

ADB-backed billion dollar wastewater treatment plant a “classic case of corruption” reports the Bangkok Post.

The 23-billion-baht Klong Dan water treatment plant in Samut Prakan is a classic study into the way politicians exploited state projects, according to a research paper.

The paper by Thai Development Research Institute says politicians have exploited the scheme at every stage.

The research, by Deunden Nikomborirak, is to mark the fifth anniversary of the  constitution.

Signs of irregularities appeared in the bidding stage _ only one private company put in a bid. The contest should have been scrapped under bidding regulations, the paper said.

The firm that won the bid was linked to former science minister Suwat Liptapallop and his relatives.

The contractor urged the Pollution Control Department to merge two waste water treatment facilities into one on the eastern side of Klong Dan, claiming the land on the
western side was overly expensive.

Moreover, land for the plant was bought at a price which exceeded the median price by one billion baht. The then deputy commerce minister and deputy industry minister (in the Chavalit Yongchaiyudh administration) were co-owners of the land.

The project’s consultant, Seatec International Asia Technology, was owned by a former politician who also jointly owned the land eyed for construction.

The project was initiated by the Science Ministry in 1995 under the Chuan Leekpai administration. The initial cost was put at 13.6 billion baht, which increased to 22.9
billion baht.

The research also looks at the Telecom Business Act.

The paper says the law would put telecom firms other than Advanced Info Services owned by Prime Minister Thaksin Shinawatra’s family at a disadvantage after concession
conversion.

The law requires that foreign share ownership of companies applying for licences must not exceed 25%. This could stop companies other than Advanced Info from mobilising funds and resources from their foreign partners.

Note: In December, 2000, Probe International called for a forensic audit of the project following villagers’ allegations of corruption. The ADB dismissed the allegations as unfounded but now a new report from Thailand’s leading group of researchers has vindicated them and renewed pressure on the ADB to freeze disbursements to the project.

See: Letter to ADB urging investigation into Samut Prakarn Wastewater Management Project