CAT board eases bidding requirements

Bangkok Post (14 November 2007)

Cat Telecom's board has reversed its decision on the 2.6-billion-baht automatically switched optical network (ASON) to allow more firms to participate in the bid if it generates a lack of interest.

Board spokesman Air Marshal Piriya Siriboon said on October 11 that companies must have successfully completed a project worth at least 390 million baht, or 15% of the project value, to qualify for the bid.

But last week CAT's board lowered the requirement to 260 million baht, or 10% of the project's value, if fewer than three bidders enter the bid, he said.

The board's decision was made in part because some bidders complained that the requirements disqualified them, ACM Piriya said.

But other bidders saw the 15% condition as fair and suitable since ASON project is significant to the state agency and changes to the bidding terms would only confuse bidders and unnecessarily delay the project, a source said.

The reversal was intended to revert the bid to the original terms, which required a company to have completed a project worth only 200 million baht, the source said. Nine telecom firms qualified for the bid under the 15% performance value requirement, the source added