Bangkok water project at risk

FIRMS working for United Utilities, the British-based water and power supplier, are becoming increasingly concerned the company plans to pull out of its $2 billion water-supply project in Bangkok.

Their fears have been prompted after the utility, a joint venture between North West Water and North West Electricity, stopped work in a row with the Bangkok city government over claims for extra cash.

United Utilities said it was owed more than GBP90 million (about HK$1.15 billion), but the Bangkok Metropolitan Authority has refused to pay any additional money.

In an effort to put pressure on the city government, United Utilities has halted construction, leaving its two main subcontractors, Sino-Thai and Siam Syntech, fuming.

Both local companies fear the utility will cut its losses and pull out before the project is completed, especially as it has already pledged to pull out of international construction work.

'United Utilities does not have anything to loose by walking away from the job,' said one local source.

'It stopped work to put pressure on Bangkok officials, but the city administration does not appear to be in any rush to settle. In the meantime, United Utilities is having to pay its personnel here while costs are being hammered by the depreciating Thai baht.' Work stopped with just 10 to 15 per cent of the construction work remaining.