Bangkok Post
January 25, 2003

Demand for service likely to be too low.

Prime Minister Thaksin Shinawatra has been warned the troubled Klong Dan wastewater treatment plant, once completed, will suffer cashflow problems due to low  demand, says the Industrial Works Department chief.

Virah Mahvichak said on Thursday Mr Thaksin had requested information about the volume of wastewater expected from factories in Samut Prakan.

“I told him the project might not have enough revenue to finance its operations. There is no way the wastewater from factories would meet the target. The state is likely to
finance the operation instead,” he said.

Wastewater from factories is expected to make up half of the capacity, or 250,000 cubic metres, of the 23-billion-baht project. The remaining half would come from households and
commercial buildings. But the actual volume from factories is predicted to be much less. Mr Virah said factories that were required to treat their wastewater would produce only
132,167 cubic metres – 100,000 cubic metres down on projections.

The real concern was that most of the factories already had their own treatment facilities. The government is now seeking expert opinion to help the project generate enough
revenue to finance its operations.

Electricity for water pumping alone is estimated to cost two million baht a day.

Initiated by the Science Ministry in 1995 under the Chuan Leekpai government, the project has been dogged by corruption allegations from the start. It is also opposed by local
villagers, who fear that treated water from the plant will upset the coastal environment.

The Thailand Development Research Institute said politicians had taken advantage of the scheme at every step. Signs of irregularities appeared at the bidding stage. A consortium
of companies put in the only bid. It was awarded the contract when, under bidding regulations, the process should have been called again. Companies in the consortium are
linked to cabinet members.

The land was bought for more than one billion baht in excess of the median price. It was co-owned by two cabinet members in the Chavalit Yongchaiyudh administration.

A former project engineer has petitioned the government, claiming changes in specifications and project materials inflated the cost to 23 billion baht from the original
12 billion baht.

His claims are being investigated by a senate committee. The construction of the project is 95% complete and more than 20 billion baht paid to contractor NPVSKG.

Two of the companies in the joint venture have links with senior politicians in the present government – Prayoonvisava Engineering with Labour Minister Suwat Liptapanlop and Si
Sang Karn Yotah (1979) with Chart Thai party leader Banharn Silpa-Archa.