The Transport Ministry has come up with a five-point plan to deal with last week's court ruling ordering it and the State Railway of Thailand (SRT) to pay 11.88 billion baht, plus interest, in compensation to Hopewell (Thailand) Co over an urban train project cancelled two decades ago.
Arkhom: 'Govt duty to solve problem'
The Supreme Administrative Court on April 22 ordered them to pay the sum to the firm plus an interest rate of 7.5% a year.
Transport Minister Arkhom Termpittayapaisith said the five directives were tabled to the cabinet on Tuesday and approved.
First, the ministry will ask the court to clarify the interest payments and compensation of insurance fees to the company.
Second, the ministry will negotiate with Hopewell to get the best agreement for the country.
Third, the source of the compensation will be agreed upon.
Fourth, a working committee to oversee the negotiations will be established.
The committee will consist of representatives from the ministry, the SRT, the Attorney-General's Office, the Budget Bureau, the Comptroller General's Department, the Public Debt Management Office and the State Enterprise Policy Office, according to Mr Arkhom.
Finally, an investigation will be launched to ascertain who was responsible for the train project's failure.
"The project was developed over three decades ago and had been handled by nine governments. Even though this government is not responsible, it is our duty to solve the problem," Mr Arkhom said after a cabinet meeting on Tuesday.
The contract to build the "Hopewell Project" was signed on Nov 9, 1990, when the late Montri Pongpanit was transport minister in the Chatichai Choonhavan government. When the 30-year concession was granted in 1990, investments in the project were estimated at 80 billion baht.
However, construction was only 13% complete by the agreed deadline.
The contract was officially terminated on Jan 27, 1998, by the Chuan Leekpai-led Democrat government, when Suthep Thaugsuban was transport minister.
