Ch Karnchang Plc, Thailand's third-largest contractor by market value, remains confident its controversial Xayaburi dam in northern Laos will proceed next year. Chief executive Plew Trivisvavet said yesterday the Lao government is unlikely to scrap a concession contract for the US$3.7-billion hydroelectric dam.
The four-member Mekong River Commission earlier this month agreed to further delay the Xayaburi project pending environmental study.
"I think the Xayaburi project will become clearer next year, and we'll be able to proceed," said Mr Plew.
CK insists Xayaburi will proceed
"Scrapping the concession is unlikely."
CK owns a 57.5% stake in Xayaburi, with PTT Plc and Electricity Generating Authority of Thailand holding 25% and 12.5%, respectively.
It is the first of 11 dams planned for the lower Mekong. Some 60 million people depend on the river and its tributaries for food, water and transport.
CK yesterday signed a contract worth 14 billion baht with the Mass Rapid Transit Authority of Thailand for civil work on the Green Line linking Soi Bearing and Samut Prakan.
Construction of the 13-kilometre elevated section with nine stations is slated to take place over 45 months, but Mr Plew wants to accelerate construction to 36 months. Operation of the line is scheduled for mid-2016.
Transport Minister Sukumpol Suwanatat, who chaired the signing ceremony, said the government is committed to finish construction of the 10 mass transit rail lines as promised within four years.
"The Yellow and Pink lines will be delayed about a year after I ordered the design changed from a monorail to heavy rails so that all 10 lines will operate with the same system," he said, adding that a monorail is not good for Greater Bangkok.
Thailand agreed to work with China on a high-speed train line because the kingdom doesn't have the technology for the project, said Mr Sukumpol.
CK shares closed yesterday on the SET at 7.70 baht, up 5 satang, in trade worth 43.3 million baht.
