The Bangkok Mass Transit Authority (BMTA) has scrapped a third round of bidding for 489 natural gas vehicle (NGV) buses after no companies applied for the contract at an e-auction yesterday, according to Deputy Transport Minister Pichit Akrathit.
He said the Ministry of Transport (MOT) will urge the BMTA to draft new terms of reference (TOR) for a new round of bidding to commence within two months so the buses can be delivered by February.
The contract, valued at 3.3-billion baht, has dropped 40% in value compared to the BMTA's original median price of 4 billion baht.
According to Mr Pichit, the lower value of the contract discouraged private companies from throwing their hats into the ring.
He said the BMTA will have to adjust its median price to encourage more companies to participate.
Prime Minister Prayut Chan-o-cha will understand why the auction has stumbled as the BMTA did not have control over the legal complications that have surfaced, he said. The premier urged the MOT last Tuesday to provide the buses as a "New Years' gift" for the public.
Mr Pichit said the decision to postpone the auction would not affect the BMTA's reform plans.
As part of them, the BMTA is now drafting details of tax exemptions for a procurement project of 200 electric buses worth 2.7-billion baht, he said.
The agency will submit details to the MOT within three weeks before they go to the cabinet, he added.
In the previous round of bidding for the NGV buses, a 3.3-billion baht contract was initially agreed upon by the BMTA and bus manufacturer Bestlin Group.
The company was later blacklisted after it failed to deliver all the buses on time.
The BMTA later removed it from the blacklist, spurring complaints from politicians and corruption fighters about whether the decision was the right one. The MOT has since ordered the authority to review its decision.
Bestlin's buses are being held by the Customs Department, which accused the Chinese-owned company of exploiting tax exemptions under an Asean free-trade agreement.
Thai customs believes Super Zara Co, the company that handles Bestlin's imports, made it look like the buses were manufactured and assembled in Malaysia, which would have qualified the buses for a tax exemption. The buses are suspected to have come from China.
The blacklist decision against Bestlin, and subsequent confusion over its status since, prevented it from joining the e-auction.
BMTA president Nuttachat Charuchinda said on Wednesday a decision on Bestlin's eligibility to take part will be made within days.
He said two other firms had expressed an interest in joining the auction, though they did not take part yesterday.
They are Thai Technology & Development and a joint venture between JV Converting (JVCC) and Cho Thavee (CHO).
