MRTA SEEKS INCLUSION OF ARBITRATION CLAUSES

       Tha mass Rapid Transit Authority will seek Cabinet approval to include arbitration clauses in its multi-billion baht construction and loan contracts using Japanese funds.
       MRTA chairman Suphoth Sublom said the request for arbitration clauses had been made by the Japan International Cooperation Agency(JICA), which would fund the MRTA's Purple Line mass-transit project.
       The Purple Line will run from Bang Sue to Bang Yai.
       The Cabinet earlier ordered all state agencies to avoid including clauses in contracts requiring the use of an arbitration committee to settle disputes between state agencies and private companies.

       MRTA would also seek an increase in the construction budget for the Blue Line to Bt52.4 billion.

       The order was issued after arbitration committees ruled the government was liable to large amounts of compensation in such contractual disputes.
       Cases involving construction and concession contracts for the Bang Na-Bang Pakong and Don Muang tollways are among the examples.
       However, the JICA insists arbitration clauses are needed for construction of the Purple Line.
       Suphoth said the MRTA would also seek Cabinet approval to increase the construction budget for the Blue Line, which will run from Bang Sue to Tha Phra and from Hualamphong to Bang Khae, from Bt48.8 billion to Bt52.4 billion.
       If approved, the MRTA will proceed with plans to invite bids to implement the scheme. Otherwise, the scheme will have to be revised.
       The Blue Line will involve five contracts costing Bt75.9 billion, including Bt48.8 billion for civilconstruction work and Bt25 billion for tracks and train bodies.