(Jan 15): Thailand ordered the nation’s biggest construction firm to suspend work at over a dozen projects after two separate crane crashes over two days that left 34 people dead and dozens injured.
Prime Minister Anutin Charnvirakul also cancelled Italian-Thai Development Pcl’s contracts to build a section of the Chinese-backed high-speed rail network in northeastern Thailand and an elevated expressway connecting the capital Bangkok to coastal Samut Sakhon province.
The crane collapse onto a moving express train on Wednesday killed at least 32 people, while the mishap on the expressway a day later left two people dead. The under-construction elevated expressway in Thursday’s incident is situated along Rama II Road, a stretch that’s become infamous for construction delays and fatal incidents.
The accidents sparked public outcry and calls from politicians for tough actions against the builder.
The government crackdown is the latest blow for Italian-Thai after its President Premchai Karnasuta was among those indicted for the collapse of a partly finished government building in Bangkok that killed 89 workers following an earthquake in March. The company has struggled with its finances too of late, with a meeting of its bondholders scheduled for Friday to seek backing for a proposal to extend debt maturities and a waiver of covenant breaches.
Italian-Thai has about 13 government contracts, including major infrastructure projects such as the construction of subway train systems, Transport Minister Phiphat Ratchakitprakarn told reporters Thursday. The firm will also be barred from bidding for future contracts on a case-by-case basis, he said.
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Italian-Thai, the nation’s largest construction firm by revenue, accepts full responsibility for providing compensation and remedial measures for the losses incurred, the company said in an exchange filing. It plans to review and improve safety measures to be more thorough and stringent moving forward, according to the statement.
The company’s shares tumbled 20% in Bangkok, extending declines to a second straight day.
The termination of Italian-Thai’s contracts will be in accordance with the laws and regulations, Anutin said, adding that other companies will be enlisted to ensure the continuity of the projects.
Work on the high-speed rail line to link Thailand to China through Laos by 2030 has continued, except in the area where the crane crashed, according to officials.
The Thai section of the project under Beijing’s Belt and Road Initiative is 609km and connected to the Laos-China line via a bridge built over the Mekong River. It is estimated to cost about US$13 billion.
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