"Pressure to have new Bangkok airport built on time"

Thursday, October 19, 2000

Japan creditor bank asked to ease loan terms; Pressure to have new airport
built on time
THAILAND - BANGKOK POST


Mongkol Ampornpisit, the chairman of New Bangkok International Airport Co,
wants the Japan Bank for International Co-operation to relieve its loan
conditions and streamline the approval process for the new airport's
construction.

Gen Mongkol yesterday said he would do his best to have the new airport
completed by 2004. He will ask Finance Minister Tarrin Nimmanahaeminda to
help convince his Japanese counterpart to have the bank facilitate the
project's implementation.

"I am ready to negotiate with the creditor myself if that is necessary,"
said the former Supreme Commander.

As contenders' lowest quotation for the airport passenger terminal was 8.8
billion baht higher than the firm's 45-billion-baht construction budget, it
needs a green light from the bank to have the terminal design adjusted to
meet its budget.

The firm would have to stage a fresh bidding contest if the bank disagrees,
Gen Mongkol said.

He declined to comment on the possibility that the terminal's fall-back
design by Pacific Consultants International Co from Japan would replace the
original design by the US-led Murphy Jahn/TAMS/ACT consortium.

Gen Mongkol said he would like to have the bank's answer on the design
adjustment first. NBIA managing director Somchet Tinapong confirmed the
bank's endorsement was compulsory in every stage of implementation because
the 73-billion-baht construction of the entire airport depended completely
on loans.

Another 47-67 billion baht of the project cost would go to the project
management and be funded by NBIA shareholders - the Airports Authority of
Thailand and the Finance Ministry.

Mr Somchet also said the new airport would have to be completed on schedule
or it could cost Thailand 200 billion baht in lost business opportunities
for each year of delay. He quoted a study by the International Air Transport
Association. The project is 19% complete and still on schedule, he said. He
expects the firm to select a contractor for the airport terminal in two
months so construction can start by January.

Prot Setsuwan, IATA's Thailand manager, said although some airlines
relocated their aviation bases to Malaysia and Singapore, they would return
to Thailand if the Nong Ngu Hao airport showed concrete progress.

He suggested the government close Don Muang airport after Nong Ngu Hao is
completed because that was what the airlines wanted.

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