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Phuket officials apply for B38mn to finally finish new Provincial Hall

Phuket officials apply for B38mn to finally finish new Provincial Hall

PHUKET: Phuket Governor Phakaphong Tavipatana has filed a request for B38 million in the hopes of finally securing the funds needed to finish the B546mn new Phuket Provincial Hall that has sat for years unfinished on the south side of Phuket Town.

constructioneconomics
By The Phuket News

Monday 9 September 2019, 06:29PM


In his first days on the island as Phuket Governor, Gov Phakaphong on Oct 5 last year called for a new contractor to be signed by no later than December 2018 to complete the work. (See story here.)

That great leap forward has yet to happen.

At a meeting on Friday (Sept 6), Governor Phakaphong announced that he had filed a request with the Ministry of Interior for B38mn in order to finally complete the decades in coming project.

Phuket officials still have B160mn left from the original budget after the contractor Chun Eaw Co Ltd failed to finish the initial part of the construction, but still need more in order to fund the B198mn contract to hire “Wall and Tesco” (transliteration from Thai) to finish the construction.

Governor Phakaphong explained that the government had reclaimed from Chun Eaw Co Ltd B22,495,000, which was the standard 5% of the contract value awarded that is held as a deposit as a guarantee that the contract will be fulfilled as per government regulations.

 A further B11,976,338 was reclaimed from Chun Eaw Co Ltd as monies paid for work not done, he added.

Chuan Eaw had received B277,543,280 through 47 payments while it was still working on the project, he noted.

The monies reclaimed were handed over to the Comptroller General's Department (CGD), as is standard procedure, Gov Phakaphong explained.

However, the CDG has refused to hand the monies back to Phuket officials so that the project can be completed.

Without those funds, there is not enough funds to hire the new contractor to complete the new Provincial Hall, he explained.

Hence, he said, “Phuket [“government”] has filed a request to the Ministry of Interior for B38,349,648 in order to to acquire the budget needed to complete the construction through a new contract.

“The request [for B38mn] is now under the consideration of the Office of the Permanent Secretary for Interior,” Governor Phakaphong said.

The initial contractor, Chun Eaw Co Ltd, failed to complete its part of the project amid a slew of reasons, including changes in the labour law last year regarding migrant workers.

The contractor was granted two extensions, yet still failed to complete the work. (See story “Cashed Out: Construction of B450mn Provincial Hall stalls, ‘financial mismanagement’ blamed”, click here.)

Of note, while the initial total project value was presented to the public as B450mn (see story here), the B449mn dedicated to Phase 1 by Chun Eaw Co Ltd and the B198mn now understood to be dedicated to "Wall and Tesco" to complete Phase 2 brings the total cost of the new Phuket Provincial Hall to B647mn.

 

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BenPendejo | 10 September 2019 - 11:44:11

Just a shame that every undertaking involving the government ends up fraught with incompetence and financial malfeasance. Will Thailand ever put someone in charge that can cut through the corruption and actually look out for the best interests of the people of Thailand rather than their own greedy interests? Not sure if it is even possible since self interest runs from the top down.

Kurt | 10 September 2019 - 09:31:55

Was the construction stop not at the same time that new labour laws where financially threatening construction companies, who mostly  employed immigrants, legal/illegal. Perhaps a pity that illegal labour that time were not declared temporarily legal for period of time of construction. Guess this same immigration labour problem made that Chalong underpass construction took almost 4 years?

Kurt | 09 September 2019 - 19:05:33

Hahaha, a lot of money shuffling talks going on now after this debacle construction. How about have technicians check or this skeleton building really is still solid enough for   construction continuation after all this time, like nothing has happened. It should be not on governor 'hopes' but on construction strength to continue. building. Whole project so far a example of incompetence.

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