Thailand's Klong Dan Wastewater Treatment Plant--A Case Study of ADB-Condoned Corruption by Phairath Khampha 16 November 2002 Politicians exploited plan `at every stage' The 23-billion baht (US$548 million) Klong Dan water treatment plant in Thailand's Samut Prakan province is a classic study into the way Thai politicians exploited state projects, according to a research paper--all without the Asian Development Bank, which financed the project, hardly seeming to care less. The paper by Thai Development Research Institute said politicians exploited the scheme at every stage. The research, by Deunden Nikomborirak, marked the fifth anniversary of Thailand's current constitution. Signs of irregularities appeared in the bidding stage--only one private company put in a bid. The contest should have been scrapped under the international bidding regulations required of the ADB, the paper said. Obviously the ADB knew, but for political and diplomatic expediency decided to ignore this transgression. The firm that won the bid was linked to former science minister Suwat Liptapallop and his relatives. The contractor urged the Pollution Control Department to merge two waste water treatment facilities into one on the eastern side of Klong Dan, claiming the land on the western side was overly expensive. Moreover, land for the plant was bought at a price which exceeded the median price by one billion baht. The then deputy commerce minister and deputy industry minister (in the Chavalit Yongchaiyudh administration) were co-owners of the land. They sold the land at a price which grossly exceeded the normal selling price on the market. The project's consultant, Seatec International Asia Technology, was owned by a former politician who also jointly owned the land eyed for construction. The project was initiated by the Science Ministry in 1995 under the Chuan Leekpai administration. The initial cost was put at 13.6 billion baht, which increased to 22.9 billion baht. The research also looked at the Telecom Business Act. The paper said the law would put telecom firms other than Advanced Info Services owned by Prime Minister Thaksin Shinawatra's family at a disadvantage after concession conversion. In other words all companies but the one owned by Thaksin's family would be unable to compete successfully. The law requires that foreign share ownership of companies applying for licences must not exceed 25%. This would stop companies other than Advanced Info from mobilising funds and resources from their foreign partners.