Italian-Thai Quotes Lowest Cost for Passenger Terminal at Bangkok's New Second Airport by Phairath Khampha 17 October 2001 Only bid to come in below median price Thailand's largest contractor, Italian-Thai Development Plc was expected to play a bigger role in building Nong Ngu Hao airport after its ITO joint venture put in the lowest quote for the passenger terminal on October 8, 2001. The consortium, which also included the Takenaka and Obayashi companies from Japan, tendered a quote for the terminal of 36,665 million baht: 15,085 million baht for the terminal and 21,580 million baht for concourse buildings. (1 US Dollar = 44.86 Thai Baht) Of the four groups invited to put in a bid, ITO was the only one to meet or fall below the median price set by New Bangkok International Airport Co (NBIA), of 36,787 million baht. ITO's quote was 122 million baht below the median price. The Taisei-Mitsubishi group was the runner-up, quoting 41,648 million baht. The CKKB group (Ch Karnchang, Kajima, Kumagai Gumi, and Bilfinger) quoted 45,680 million baht. The highest quote belonged to the SVNPK group (Shimizu, Vichitbhan, Nishimatsu, Prayoonvisava and Krung Thon), standing at 49,276 million baht. Deputy Transport Minister Pracha Maleenond said he was pleased with the result. It was still planned to complete the project by 2004. Thanks to the transparency of the bidding process, Japan Bank for International Co-operation (JBIC) was sure to lend to the project, he said. "The bid evaluation committee must examine details to confirm there is no condition which may raise the cost afterwards," Mr Pracha said. The results would be sent to JBIC for approval so a contract could be signed by November 30. Transport permanent secretary Srisook Chandrangsu, the NBIA acting managing director, said, "The project will progress as planned and work should start on December 1." Mr Srisook said the project would benefit if ITO won the contract because Italian-Thai Development Plc, the group's leader, was also responsible for the landfill work and pile driving. A single contractor would result in easy co-ordination and rapid construction, he said. Thawatchai Suthiprapha, vice-chairman of Italian-Thai Development, said ITO came up with the lowest quote because Italian-Thai Development produced many building materials through its subsidiaries, including steel, wires, cement and gravel. "We can produce 4,000-5,000 tonnes of steel a year and can expand the capacity. This will result in low costs," he said. The quotes that came in on October 8, the second round of bidding to be held, were lower thanks to design changes that knocked out imported materials in favour of local materials, he said. The changes would allow more firms to compete in supplying materials to the contractor. NBIA's six-member evaluation panel comprises NBIA assistant managing director Permsak Patanapong as chairman, administrative director Kamolpong Chumanee, engineering and architectural director Surajit Suraponchai, finance manager Kannika Watananirun, and representatives from the Airports Authority and the Highways Department. An NBIA source said the terminal contractor could make a profit of more than 800 million baht because the median price included a profit rate of 1.5-2.5%.