The main feature of the mixed-use MahaNakhon projecty will be a 77-storey tower that will be one of the tallest structures in Bangkok's central business district (CBD).
It is the creation of internationally acclaimed architect Ole Scheeren, one of the principal architects in the Dutch firm Office for Metropolitan Architecture and widely recognised for his work on the pioneering CCTV Building in Beijing.
With its distinctive sculptural appearance, MahaNakhon will have a three-dimensional ribbon of architectural "pixels" circling the tower's full height, as if excavating portions of the elegant glass curtain wall to reveal the inner life of the building, said Pace Development CEO Sorapoj Techakraisri.
MahaNakhon's profile will generating a set of special features - projecting glass skyboxes with sweeping views and generous indorrr/outdoor spaces well suited to Bangkok's tropical climate. Residences without pixels will exjoy innovations never seen before: double-height living spaces and duplexes with full-height folding balcony windows that fold inwards to open up homes and allow living areas to become indoor/outdoor environments.
MahaNakhon's stacked surfaces, terraces and protrusions have been' conceived to convey the energy, intensity and inclusiveness of Thai society and celebrate Bangkok's emergence as a true global capital, fitting the Thai meaning of the name MahaNakhon (great metropolis).
The complex will stand in the CBD on more than 9 rai directly adjacent to Chong Nonsi Skytrain Station on Narathiwat Road, between Silom and Sathorn roads.
Its components will include MahaNakhon Square, a landscaped outdoor public plaza intended as a new public destination within the city; MahaNakhon Terraces, 10,000 square metres of lifestyle retail space with gardens and terraces on multiple levels for restaurants, cafes and a 24-hour marketplace; The Ritz-Carlton Residences, Bangkok, with 200 highly-customised single-level and duplex homes, managed by The Ritz-Carlton with five-star amenities for all residents and interior-designed by David Collins Studio; and The Bangkok Edition, a boutique hotel with 150 rooms that will be a collaboration between Marriott International and renowned hotelier Ian Schrager. The complex will be topped by a multilevel rooftop Sky Bar and Restaurant, 310 metres above the street.
Sorapoj said the project was the result of strongly held wish to do something for Thailand that would be both an enduring architectural symbol and proof of the company's commitment and confidence in Thailand's long term economic prosperity and cultural diversity.
Architect Ole Scheeren said MahaNakhon would not be an inert isolated skyscraper, but rather a building that would actively engage the city and connect to its urban fabric.
The three-dimensional pixels that spiral up the tower will offer differentiated indoor and outdoor spaces of an energetically public and exclusively private nature. The building will absorb Bangkok's intensely vibrant energy and simultaneously give it back to the city.
The project has passed an environment-impact assessment, and application has been made for a construction licence, so building can start around the end of this year, for completion in 2012, Sorapoj said.
Thursday, September 24, 2009
Wednesday, September 23, 2009
RAIL-LINK LAUNCH NOT DELAYED BY PHEU THAI COMPLAINTS, SAYS SRT
The State Railway of Thailand (SRT) is insisting the launch of the airport-link service will not be delayed by the opposition Pheu Thai Party's complaints about the premier and the interior minister allowing conflicts of interest in the project.
Suphoth Sublom, an SRT board director, said yesterday the project had made a lot of progress and the civil construction work was complete. The SRT is expected to officially start testing the system on December 5, which will run for three months. The service will be officially launched in April.
On Monday, a Pheu Thai MP filed a complaint with the National Anti-Corruption Commission saying that Prime Minister Abhisit Vejjajiva and Interior Minister Chaovarat Chanweerakul had allowed conflicts of interest in the project because Chaovarat's family members held shares in a construction company.
Pheu Thai's Lamphun MP Sanguan Pongmanee and the party's spokesman Prompong Nopparit claimed that Chaovarat's wife and children held shares in Sino-Thai Engineering and Construction, which won the Bt408-million project contract for adding more trimmings to the rail link. The Cabinet had approved the budget on March 10.
Chaovarat, also leader of Bhum Jai Thai Party, argued he had already declared his assets and has had nothing to do with the company for a long time now.
Moreover, he said, since Sino-Thai was a public company, anybody could buy its shares and as his children were all adults, they could do what they wanted with their money.
On March 10, the Cabinet approved the Transport Ministry's request for an additional Bt115 million to hire a consultant to supervise the construction of elevated paths linking the Phya Thai Skytrain station and the Petchaburi subway station to the airport-rail link at Makkasan. This is part of the connection between airport-rail link and the SRT transportation system in the city.
It also approved Bt11 million and Bt87 million for the construction of the paths from Phya Thai station and Petchaburi subway station respectively.
The government will cover the cost of the construction, which should be completed in 15 months.
The Cabinet also approved the expenditure of Bt195 million for the services of an independent safety and system certification engineer for three years. The government will be responsible for this cost as well.
The Cabinet has acknowledged the relocation of public facilities near the airport-rail link, which would cost Bt140 million. The Metropolitan Water Works Authority and the Metropolitan Electricity Authority each will be responsible for relocation costs of Bt83 million and Bt57 million, respectively.
Suphoth Sublom, an SRT board director, said yesterday the project had made a lot of progress and the civil construction work was complete. The SRT is expected to officially start testing the system on December 5, which will run for three months. The service will be officially launched in April.
On Monday, a Pheu Thai MP filed a complaint with the National Anti-Corruption Commission saying that Prime Minister Abhisit Vejjajiva and Interior Minister Chaovarat Chanweerakul had allowed conflicts of interest in the project because Chaovarat's family members held shares in a construction company.
Pheu Thai's Lamphun MP Sanguan Pongmanee and the party's spokesman Prompong Nopparit claimed that Chaovarat's wife and children held shares in Sino-Thai Engineering and Construction, which won the Bt408-million project contract for adding more trimmings to the rail link. The Cabinet had approved the budget on March 10.
Chaovarat, also leader of Bhum Jai Thai Party, argued he had already declared his assets and has had nothing to do with the company for a long time now.
Moreover, he said, since Sino-Thai was a public company, anybody could buy its shares and as his children were all adults, they could do what they wanted with their money.
On March 10, the Cabinet approved the Transport Ministry's request for an additional Bt115 million to hire a consultant to supervise the construction of elevated paths linking the Phya Thai Skytrain station and the Petchaburi subway station to the airport-rail link at Makkasan. This is part of the connection between airport-rail link and the SRT transportation system in the city.
It also approved Bt11 million and Bt87 million for the construction of the paths from Phya Thai station and Petchaburi subway station respectively.
The government will cover the cost of the construction, which should be completed in 15 months.
The Cabinet also approved the expenditure of Bt195 million for the services of an independent safety and system certification engineer for three years. The government will be responsible for this cost as well.
The Cabinet has acknowledged the relocation of public facilities near the airport-rail link, which would cost Bt140 million. The Metropolitan Water Works Authority and the Metropolitan Electricity Authority each will be responsible for relocation costs of Bt83 million and Bt57 million, respectively.
Monday, September 14, 2009
Doosan Heavy buys Czech turbine firm
South Korea's Doosan Heavy said yesterday it had agreed to buy Czech turbine maker Skoda Power for 450 million ($654 million) to better compete with bigger rivals such as GE and French engineering group Alstom.
"Skoda Power and Babcock will help us actively target European and US markets... and better compete with global leaders such as GE, Siemens and Alstom,"Doosan Heavy Industries & Construction said in a statement.
Doosan Heavy estimated that the acquisition, which it wants to complete within two to three months, would add 5.3 trillion won ($4.33 billion) in sales in 2020.
The addition of the 150-year-old turbine maker, which sells products in over 60 countries, would also help it complement its power generation and engineering business as Doosan has resorted to foreign rivals such as GE to secure turbine technologies.
Doosan Group has grown in business portfolio and scale through acquisitions.Its flagship unit Doosan Infracore Co bought the world's top compact construction equipment firm, Bobcat, and two other units from US conglomerate Ingersoll-Rand for $4.9 billion in cash in 2007.
"Skoda Power and Babcock will help us actively target European and US markets... and better compete with global leaders such as GE, Siemens and Alstom,"Doosan Heavy Industries & Construction said in a statement.
Doosan Heavy estimated that the acquisition, which it wants to complete within two to three months, would add 5.3 trillion won ($4.33 billion) in sales in 2020.
The addition of the 150-year-old turbine maker, which sells products in over 60 countries, would also help it complement its power generation and engineering business as Doosan has resorted to foreign rivals such as GE to secure turbine technologies.
Doosan Group has grown in business portfolio and scale through acquisitions.Its flagship unit Doosan Infracore Co bought the world's top compact construction equipment firm, Bobcat, and two other units from US conglomerate Ingersoll-Rand for $4.9 billion in cash in 2007.
Saturday, September 12, 2009
Prince Charles' crusade draws the wrath of modern architects
Prince Charles, heir to the British throne, does not hide his hostilioty to modern architecture but his long-standing design crusade is now drawing accusations of abuse of power.
The prince's efforts to promte clasical designs over modern "carbunchles" have enraged many architects, particularly when he manages to block new projects - interventions that some condemn as anti-democratic.
The scale of the row was laid bare this week when the new head of the Royal Institute of British Architects, Ruth Reed, laid in to Charles' interference in planning decisions just one day into her new job.
"It is unfortunate if anybody uses their position in public life to exert undue influence on a democratic process such as planning," she told the BBC on Tuesday, the day after becoming RIBA's first female president.
"There appears to be evidence that he has written behind the scenes both about planning applications and also about the appointment of particular architects, which would be an abuse of his position, definitely."
Graham Smith, a spokesman for the anti-monarchy campaign group Republic, said the prince's interventions made his position as future king "untenable".
"He can't do the job-as heir of the throne he is obliged to remain neutral and out of politics," Smmith told AFP.
Criticism of Charles gathered steam this year when his objections to an ultra-modern project for a former military barracks in west London reportedly resulted in the plans being scrapped.
According to the British press, the prince wrote to the Qatar royal family, who are linked to the Gul state's property investment arm, Qatari Diar, to ask them to review plans by renowned British archietect Richard Rogers.
In June, Qatari Diar withdrew their planning application for the building.
Charles had described Rogers' projects as "unsympathetic and unsuitable", proposing an alternative design that used traditional brick and stone that used traditional brick and stone that were used in the surrounding buildings.
"Even if he is quite forward-thinking in terms of sustainability and environment...[Charles] is a bit more aggressive and a bit more lookingg back" when it comes to architecture, expained Dan Stewart, architecture correspondent for Building magazine.
The bad blood between Charles and Rogers goes back 25 years to a now infamous speech by the prince in which he atacked the architect's plans for an extension to the National Gallery in London as a "monstrous carbuncle".
But the their to the throne's anger is not confined to Rogers.
In 2005, he tried to block a project by the French architect Jean Nouvel, which he believed risked ruining the area around St Paul's cathedral in London.
Charles wanted something that should "allow St. Paul's to shine brightly" and suggested architect Quinlan Terry-who specialises in building grand houses in historical modes - take over, the project's then manager Mike Hussey said.
However, his objections were rejected and Nouvel's project for offices and shops at One New Change is under construcction.
The prince's latest intervention came in support of plans to add a loggia to Kensington Palace where he lived with his late wife, Princess Diana. It was rejected by planners last month.
While Charles' aides refuse to comment on the disputes, Hank Dittmar, chief executive of the Prince's Foundation for the Built Environment, an educational chairty, insisted the public shared his clasical tastes.
"At its core this is an argument about architects and developers wanting to have their way, not about democracy in planning," he wrote last month in response to the media speculation.
The bad blood between Charles and Rogers goes back 25 years when the prince attacked the architect's plans for an extension to the National Gallery as a "monstrous carcuncle".
The prince's efforts to promte clasical designs over modern "carbunchles" have enraged many architects, particularly when he manages to block new projects - interventions that some condemn as anti-democratic.
The scale of the row was laid bare this week when the new head of the Royal Institute of British Architects, Ruth Reed, laid in to Charles' interference in planning decisions just one day into her new job.
"It is unfortunate if anybody uses their position in public life to exert undue influence on a democratic process such as planning," she told the BBC on Tuesday, the day after becoming RIBA's first female president.
"There appears to be evidence that he has written behind the scenes both about planning applications and also about the appointment of particular architects, which would be an abuse of his position, definitely."
Graham Smith, a spokesman for the anti-monarchy campaign group Republic, said the prince's interventions made his position as future king "untenable".
"He can't do the job-as heir of the throne he is obliged to remain neutral and out of politics," Smmith told AFP.
Criticism of Charles gathered steam this year when his objections to an ultra-modern project for a former military barracks in west London reportedly resulted in the plans being scrapped.
According to the British press, the prince wrote to the Qatar royal family, who are linked to the Gul state's property investment arm, Qatari Diar, to ask them to review plans by renowned British archietect Richard Rogers.
In June, Qatari Diar withdrew their planning application for the building.
Charles had described Rogers' projects as "unsympathetic and unsuitable", proposing an alternative design that used traditional brick and stone that used traditional brick and stone that were used in the surrounding buildings.
"Even if he is quite forward-thinking in terms of sustainability and environment...[Charles] is a bit more aggressive and a bit more lookingg back" when it comes to architecture, expained Dan Stewart, architecture correspondent for Building magazine.
The bad blood between Charles and Rogers goes back 25 years to a now infamous speech by the prince in which he atacked the architect's plans for an extension to the National Gallery in London as a "monstrous carbuncle".
But the their to the throne's anger is not confined to Rogers.
In 2005, he tried to block a project by the French architect Jean Nouvel, which he believed risked ruining the area around St Paul's cathedral in London.
Charles wanted something that should "allow St. Paul's to shine brightly" and suggested architect Quinlan Terry-who specialises in building grand houses in historical modes - take over, the project's then manager Mike Hussey said.
However, his objections were rejected and Nouvel's project for offices and shops at One New Change is under construcction.
The prince's latest intervention came in support of plans to add a loggia to Kensington Palace where he lived with his late wife, Princess Diana. It was rejected by planners last month.
While Charles' aides refuse to comment on the disputes, Hank Dittmar, chief executive of the Prince's Foundation for the Built Environment, an educational chairty, insisted the public shared his clasical tastes.
"At its core this is an argument about architects and developers wanting to have their way, not about democracy in planning," he wrote last month in response to the media speculation.
The bad blood between Charles and Rogers goes back 25 years when the prince attacked the architect's plans for an extension to the National Gallery as a "monstrous carcuncle".
Thursday, September 10, 2009
MRTA TURNS TO GOVT FOR LOAN AFTER JICA DELAYS
The Mass Rapid Transit Authority of Thailand (MRTA) wants to opt for a domestic loan, instead of taking a loan from the Japan International Cooperation Agency (Jica), to fund the construction of the Purple Line's rolling-stock system.
This decision came after Jica informed the MRTA that it would only consider the funding of the rolling-stock system in next March instead of this month, MRTA deputy governor Chookiat Phothayanuwat said yesterday.
He said the MRTA was discussing the matter of the loan with the Finance Ministry's Public Debt Management Office.
The rolling-stock system, worth Bt3.6 billion, is the last of four civil contracts for the construction of the Purple Line that would have used a loan from Jica.
Chookiat said if a domestic loan for MRTA was approved, it expects to be able to open the bidding for the rolling-stock system early next year. The construction of the system should be completed in two years.
CKTC, a joint venture between Ch Karnchang and Tokyo Construction, won the first civil construction contract worth Bt14.29 billion.
Sino-Thai Engineering and Construction won the second contract worth Bt13.1 billion, while the Power Line Engineering-led consortium won the third contract worth Bt5.025 billion.
The entire project costs Bt59.8 billion, which includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train system.
Chookiat added that the MRTA was still waiting for Jica to approve the loan for the civil construction of the second and third contracts and believes the MRTA could officially award the deals to the bid winners within this month.
He said the MRTA was clearing the area for CKTC to begin its construction project.
The MRTA already submitted its investment plan on the train-signalling system, train carriages and operation to the National Economic and Social Development Board (NESDB) for consideration early this month.
The NESDB is expected to take 60 days to complete the consideration before forwarding the plans to the Transport Ministry and the Cabinet for approval. Once approved, the MRTA plans to seek a partner to jointly invest in the systems.
The MRTA will invest in the signalling system, train carriages and operation on a Public-Private Partnership basis.
This decision came after Jica informed the MRTA that it would only consider the funding of the rolling-stock system in next March instead of this month, MRTA deputy governor Chookiat Phothayanuwat said yesterday.
He said the MRTA was discussing the matter of the loan with the Finance Ministry's Public Debt Management Office.
The rolling-stock system, worth Bt3.6 billion, is the last of four civil contracts for the construction of the Purple Line that would have used a loan from Jica.
Chookiat said if a domestic loan for MRTA was approved, it expects to be able to open the bidding for the rolling-stock system early next year. The construction of the system should be completed in two years.
CKTC, a joint venture between Ch Karnchang and Tokyo Construction, won the first civil construction contract worth Bt14.29 billion.
Sino-Thai Engineering and Construction won the second contract worth Bt13.1 billion, while the Power Line Engineering-led consortium won the third contract worth Bt5.025 billion.
The entire project costs Bt59.8 billion, which includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train system.
Chookiat added that the MRTA was still waiting for Jica to approve the loan for the civil construction of the second and third contracts and believes the MRTA could officially award the deals to the bid winners within this month.
He said the MRTA was clearing the area for CKTC to begin its construction project.
The MRTA already submitted its investment plan on the train-signalling system, train carriages and operation to the National Economic and Social Development Board (NESDB) for consideration early this month.
The NESDB is expected to take 60 days to complete the consideration before forwarding the plans to the Transport Ministry and the Cabinet for approval. Once approved, the MRTA plans to seek a partner to jointly invest in the systems.
The MRTA will invest in the signalling system, train carriages and operation on a Public-Private Partnership basis.
Tuesday, September 8, 2009
CABINET NOD FOR LOANS FROM WB, ADB
The Cabinet yesterday approved borrowing a total of US$170.30 million (Bt5.62 billion) from the World Bank and the Asian Development Bank to finance the construction of four expressways.
Deputy government spokesman Phumin Leetheerapra said the $79.30-million loan from the World Bank would be for 15 years, including a five-year grace period, with an average interest rate of 0.91 per cent per annum. The $77.10-million loan from the ADB is for the same duration and the interest rate would be in line with the US floating rate.
Last week, the Cabinet had cancelled the loan. However, the finance minister insisted that loans from the two banks, for the construction of expressways, is the most appropriate means of financing the projects.
Parliamentary approval is necessary for the two loan deals, he said.
The Cabinet also approved some programmes to ease pollution in Map Ta Phut and Rayong. The Education Ministry is to consider the consolidation of universities in the province to provide occupational health, environment and other studies.
The ministries of public health and natural resources and environment are to present concrete measures to ease health problems, probably through a special medical unit. The Interior Ministry was also instructed to find ways to establish a special regulatory unit to improve the province's administration.
The Cabinet also approved a budget of Bt90 million for the Science Ministry's recycling project to turn dried longans in the government's stock to biomass energy.
Deputy government spokesman Phumin Leetheerapra said the $79.30-million loan from the World Bank would be for 15 years, including a five-year grace period, with an average interest rate of 0.91 per cent per annum. The $77.10-million loan from the ADB is for the same duration and the interest rate would be in line with the US floating rate.
Last week, the Cabinet had cancelled the loan. However, the finance minister insisted that loans from the two banks, for the construction of expressways, is the most appropriate means of financing the projects.
Parliamentary approval is necessary for the two loan deals, he said.
The Cabinet also approved some programmes to ease pollution in Map Ta Phut and Rayong. The Education Ministry is to consider the consolidation of universities in the province to provide occupational health, environment and other studies.
The ministries of public health and natural resources and environment are to present concrete measures to ease health problems, probably through a special medical unit. The Interior Ministry was also instructed to find ways to establish a special regulatory unit to improve the province's administration.
The Cabinet also approved a budget of Bt90 million for the Science Ministry's recycling project to turn dried longans in the government's stock to biomass energy.
Monday, September 7, 2009
FASHION ISLAND OPERATOR PLANS NEW SHOPPING MALL IN BANGKOK IN JOINT VENTURE
Siam Retail Development, operator of Fashion Island, is planning to develop a new shopping mall in Bangkok in a joint venture with a local business partner.
The company is in the process of studying concept and pattern of the new shopping complex together with its joint venture partner. Details will be announced by the end of this year.
Prasert Sriuranpong, executive director of Siam Retail Development, said the company has already invested Bt400 million in a major renovation of the 13-year old Fashion Island shopping complex on Ram Indra Road, which is almost 85 per cent complete.
The shopping mall will next year invest another Bt200 million to complete the renovation process. The new look dubbed "The Joy of Shopping" will upgrade entertainment and recreation facilities to cater to today's lifestyle. After the renovation, Fashion Island will come out in a minimal modern style.
"Nowadays, shopping plazas are mushrooming everywhere, from central Bangkok to the suburbs. To win loyal patronage, each plaza strives to raise the bar of excellence in terms of architectural design, shops, marketing strategy, sales promotions and supporting activities," said Prasert.
"Having been a comprehensive shopping mall for over 13 years, Fashion Island realises the importance of constant improvement and renovation to fit well with the needs of our target consumers in the Ram-Indra area," he said.
Prasert said that since Ram-Indra has now evolved into a residential area attracting new target groups such as teenagers, workers and families, the company feels it is time to renovate the shopping mall. This will cater to the changing consumer demand for service-oriented retail and entertainment attractions in addition to the traditional shopping experience.
Fashion Island's transformation includes a new logo, the use of a minimal modern theme for interior and exterior design to reflect a bright, trendy and spacious shopping mall, well-organised commercial zoning and the addition of lifestyle outlets such as restaurants, high street brands, shops, fashion, health and beauty, IT, and many more.
Prasert said Fashion Island had enjoyed higher traffic by 9 per cent in the first eight months of this year. The mall had attracted 16,000 vehicles on weekdays and up to between 20,000 and 23,000 vehicles on weekends. About 70 per cent of its shoppers visit the shopping mall in cars.
"About two to three million Bangkokians live in the urban areas of Bangkok. The majority lives in suburban areas such as Ram-Indra. But there is no difference in the shopping habits of people, irrespective of where they live. What we have to do is cater closely to the rapid change in their lifestyle," said Prasert.
The company is in the process of studying concept and pattern of the new shopping complex together with its joint venture partner. Details will be announced by the end of this year.
Prasert Sriuranpong, executive director of Siam Retail Development, said the company has already invested Bt400 million in a major renovation of the 13-year old Fashion Island shopping complex on Ram Indra Road, which is almost 85 per cent complete.
The shopping mall will next year invest another Bt200 million to complete the renovation process. The new look dubbed "The Joy of Shopping" will upgrade entertainment and recreation facilities to cater to today's lifestyle. After the renovation, Fashion Island will come out in a minimal modern style.
"Nowadays, shopping plazas are mushrooming everywhere, from central Bangkok to the suburbs. To win loyal patronage, each plaza strives to raise the bar of excellence in terms of architectural design, shops, marketing strategy, sales promotions and supporting activities," said Prasert.
"Having been a comprehensive shopping mall for over 13 years, Fashion Island realises the importance of constant improvement and renovation to fit well with the needs of our target consumers in the Ram-Indra area," he said.
Prasert said that since Ram-Indra has now evolved into a residential area attracting new target groups such as teenagers, workers and families, the company feels it is time to renovate the shopping mall. This will cater to the changing consumer demand for service-oriented retail and entertainment attractions in addition to the traditional shopping experience.
Fashion Island's transformation includes a new logo, the use of a minimal modern theme for interior and exterior design to reflect a bright, trendy and spacious shopping mall, well-organised commercial zoning and the addition of lifestyle outlets such as restaurants, high street brands, shops, fashion, health and beauty, IT, and many more.
Prasert said Fashion Island had enjoyed higher traffic by 9 per cent in the first eight months of this year. The mall had attracted 16,000 vehicles on weekdays and up to between 20,000 and 23,000 vehicles on weekends. About 70 per cent of its shoppers visit the shopping mall in cars.
"About two to three million Bangkokians live in the urban areas of Bangkok. The majority lives in suburban areas such as Ram-Indra. But there is no difference in the shopping habits of people, irrespective of where they live. What we have to do is cater closely to the rapid change in their lifestyle," said Prasert.
Sunday, September 6, 2009
GRADUAL RECOVERY EXPECTED
The Thai Contractors Association believes the industry will recover gradually over the next year, despite expectations that the country's economy will recover by the last quarter of this year, the association's president Polpat Karnasuta said at interview with The Nation last week.
The contracting business will have to wait till next year to reap the results of the government's injection of Bt800 billion through the "Thai Khemkhaeng" (Invest for Strength) project, Polpat said.
"Thai Khemkhaeng" will be in effect from fiscal 2009 through 2011.
The contracting industry will also have to wait for the government to open bidding on infrastructure worth Bt500 billion for Bangkok's mass-transit system, especially the rail system linking Bangkok's central business district and suburbs.
Polpat said that contractors will continue to face hardship through the last quarter of this year.
"In my view, if the government can spend according to its plan, the contracting business will recover in the next year. If not, our business will take time to recover," he said.
The Mass Rapid Transit Authority of Thailand (MRTA) has signed a contract to build the mass-transit Purple Line from Bang Sue to Toa Poon, worth Bt14.29 billion.
The Purple Line project is divided into four civil-work contracts. Sino-Thai Engineering and Construction, winner of the second contract, has agreed to reduce its bid price from Bt15.3 billion to Bt13.1 billion.
The Power Line Engineering-led consortium - winner of the third contract - has also lowered its price, from Bt6.3 billion to Bt5.025 billion.
The fourth contract, which has yet to be put out for bidding which and involves installation of the rail system, will cost Bt4 billion.
The entire project will cost Bt59.8 billion, which includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train systems.
State Railway of Thailand awarded the job to build the Taling Chan-Bang Sue section of the Red Line, worth Bt8.78 billion, to Unique Engineering and Construction and Chunwo Construction and Engineering last year.
Siam City Research Institute believes the number of construction projects will increase during the second half of this year, starting with the Purple and Red lines, worth Bt36.05 billion and Bt8.7 billion, respectively. It says a start on the infrastructure mega-projects should boost confidence among private investors.
The broker's top pick in the contractor sector is Ch Karnchang, for which it has a "buy" recommendation with a fair value of Bt4.50. It says the firm's earnings are expected to improve this year on the strength of its backlog, which is worth as much as Bt12 billion.
There is also the strong possibility of new small-power-producer projects worth Bt18 billion, a planned tunnel beneath Charan Sanitwong Rd, and the construction of the Purple Line. These will contribute to Ch Karnchang's 2009 earnings, which are expected to grow by 4 per cent year on year to Bt13.87 billion, as well as strengthening its earnings over the next three to five years.
Asia Plus Securities's head of research Therdsak Thaveeteeratham agreed that construction-material costs were no longer a concern for the sector, which absorbed high steel and oil costs last year. He also echoed Siam City Research's view that the number of new construction projects would increase in the second half of this year.
The sector is likely to record combined net profit of Bt1.17 billion this year, marking a turnaround from last year's loss of Bt1.44 billion, he said.
Therdsak's top picks for the sector are Sino-Thai Engineering and Construction and Syntec Construction.
Sino-Thai is a major contractor with expertise in the construction of power plants, petrochemical plants and waste-management systems. Its financial situation is strong, with cash reserves at the end of last year totalling Bt974 million - higher than its short-term borrowing of Bt769 million. Thus, Sino-Thai's debt-to-equity ratio is as low as 0.2 times, leaving the firm well prepared should any liquidity problems arise this year, Therdsak said.
Sino-Thai's backlog is worth Bt12.09 billion. This year, it is expected to post an operating profit of Bt285 million and pay its first dividend to shareholders. Asia Plus gives it a fair value of Bt3.83 per share.
The broker said Syntec's expertise was mainly in high-rise buildings, condominiums and hotels, which provided higher profitability than other types of construction projects. Most of its customers are listed firms, which carry a lower risk of exposure to bad debts. The company's financial status is strong, with cash reserves of Bt431 million.
This year, Syntec is expected to post an operating profit of Bt227 million, with revenue from its backlog last year totalling Bt6.2 billion. Asia Plus gives its stock a fair value of Bt0.57 per share.
The contracting business will have to wait till next year to reap the results of the government's injection of Bt800 billion through the "Thai Khemkhaeng" (Invest for Strength) project, Polpat said.
"Thai Khemkhaeng" will be in effect from fiscal 2009 through 2011.
The contracting industry will also have to wait for the government to open bidding on infrastructure worth Bt500 billion for Bangkok's mass-transit system, especially the rail system linking Bangkok's central business district and suburbs.
Polpat said that contractors will continue to face hardship through the last quarter of this year.
"In my view, if the government can spend according to its plan, the contracting business will recover in the next year. If not, our business will take time to recover," he said.
The Mass Rapid Transit Authority of Thailand (MRTA) has signed a contract to build the mass-transit Purple Line from Bang Sue to Toa Poon, worth Bt14.29 billion.
The Purple Line project is divided into four civil-work contracts. Sino-Thai Engineering and Construction, winner of the second contract, has agreed to reduce its bid price from Bt15.3 billion to Bt13.1 billion.
The Power Line Engineering-led consortium - winner of the third contract - has also lowered its price, from Bt6.3 billion to Bt5.025 billion.
The fourth contract, which has yet to be put out for bidding which and involves installation of the rail system, will cost Bt4 billion.
The entire project will cost Bt59.8 billion, which includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train systems.
State Railway of Thailand awarded the job to build the Taling Chan-Bang Sue section of the Red Line, worth Bt8.78 billion, to Unique Engineering and Construction and Chunwo Construction and Engineering last year.
Siam City Research Institute believes the number of construction projects will increase during the second half of this year, starting with the Purple and Red lines, worth Bt36.05 billion and Bt8.7 billion, respectively. It says a start on the infrastructure mega-projects should boost confidence among private investors.
The broker's top pick in the contractor sector is Ch Karnchang, for which it has a "buy" recommendation with a fair value of Bt4.50. It says the firm's earnings are expected to improve this year on the strength of its backlog, which is worth as much as Bt12 billion.
There is also the strong possibility of new small-power-producer projects worth Bt18 billion, a planned tunnel beneath Charan Sanitwong Rd, and the construction of the Purple Line. These will contribute to Ch Karnchang's 2009 earnings, which are expected to grow by 4 per cent year on year to Bt13.87 billion, as well as strengthening its earnings over the next three to five years.
Asia Plus Securities's head of research Therdsak Thaveeteeratham agreed that construction-material costs were no longer a concern for the sector, which absorbed high steel and oil costs last year. He also echoed Siam City Research's view that the number of new construction projects would increase in the second half of this year.
The sector is likely to record combined net profit of Bt1.17 billion this year, marking a turnaround from last year's loss of Bt1.44 billion, he said.
Therdsak's top picks for the sector are Sino-Thai Engineering and Construction and Syntec Construction.
Sino-Thai is a major contractor with expertise in the construction of power plants, petrochemical plants and waste-management systems. Its financial situation is strong, with cash reserves at the end of last year totalling Bt974 million - higher than its short-term borrowing of Bt769 million. Thus, Sino-Thai's debt-to-equity ratio is as low as 0.2 times, leaving the firm well prepared should any liquidity problems arise this year, Therdsak said.
Sino-Thai's backlog is worth Bt12.09 billion. This year, it is expected to post an operating profit of Bt285 million and pay its first dividend to shareholders. Asia Plus gives it a fair value of Bt3.83 per share.
The broker said Syntec's expertise was mainly in high-rise buildings, condominiums and hotels, which provided higher profitability than other types of construction projects. Most of its customers are listed firms, which carry a lower risk of exposure to bad debts. The company's financial status is strong, with cash reserves of Bt431 million.
This year, Syntec is expected to post an operating profit of Bt227 million, with revenue from its backlog last year totalling Bt6.2 billion. Asia Plus gives its stock a fair value of Bt0.57 per share.
Thursday, September 3, 2009
TWEAKING THE SQUEAKING
Fixing a squeaky floor is a little like playing a game of rock-paper-scissors.Finding the right remedy can be a guessing game which is why so many squeaks are left to linger.
There are several different causes of squeaks, said Tim Carter, a columnist and the founder of askthebuilder.com, a homeimprovement website. You have to try to locate the problem by trial and error and use the easiest fixes first.
One type of squeak is caused when the subfloor - the material beneath the flooring or carpeting - moves up and down. As you walk across the floor, your body weight pushes the subfloor down, Mr Carter said. The squeak comes from the subfloor moving on the nail.
Floors can also make a noise if the floorboards were not properly nailed and, as a result, rub against each other.
A third cause, Mr Carter said, is improper installation of the cross bracing - the oneby-threes positioned beneath the subfloor in an X-pattern between the joists to keep them from twisting. One brace in each X is supposed to be slightly higher than the other,leaving a small amount of space between the two braces. If the bracing was installed incorrectly, he said, the braces can rub against one another and make a squeak.
If the bottom of the subfloor is accessible,you can see if the cross braces are touching.The braces can then be sanded or chiselled,Mr Carter said.
A device called Squeak-Relief (US$18 or 614 baht at squeakyfloor.com) can help keep a subfloor from rubbing against a nail. Jim Riesberg, who owns the Accuset Tool Company of Troy, Michigan, which manufactures the device, said it was designed with do-ityourselfers in mind.
Squeak-Relief is an aluminium brace that holds the subfloor tightly to the joist by fitting into the 90-degree space formed by the subfloor and the joist on which it rests. A set pin is hammered into the joist through a pre-drilled hole in the brace. A screw is then drilled through another hole and into the subfloor at a 30-degree angle. Then a longer screw is drilled up through a third hole and the joist and into the subfloor.
Since the pin and the screws will only fit the holes they're supposed to go in, its idiotproof, Mr Riesberg said.
If the floor's underside is not accessible if there is no basement or the cross bracings are covered by the ceiling of the room below - the guessing game begins.
The easiest remedy is to shoot finish nails through the floor and into the subfloor - or,for an even stronger hold, to use screws with small heads.
Varouj Nersesian, the owner of the Floor Sanders Company in Boston, said that in either case, the nails or screws should be driven just below the floor surface and the holes concealed with a filler in a colour that matches the floor. The whole floor could then be sanded and refinished, but if you're not too fussy, you can just sand and refinish the holes, Mr Nersesian said.
For floors covered by wall-to-wall carpeting,a kit called Squeeeeek No More ($19.95 at squeaknomore.com) allows screws to be used without removing the carpet. The kit, sold by OBerry Enterprises, a tool company in Ringwood, Illinois, includes 50 thin screws,a drill bit and a screw with special threading to detect when contact is made with a joist (other joists can then be located because they are spaced 40cm apart).
The screws are drilled through the carpet,into the floor and down into the joist. Their heads are designed to be broken off with a tool that comes with the kit, leaving the threaded section of the screw in place below the floor surface. Because the screws are thin, the repair is usually invisible (or the carpet fibres can be fluffed to hide them).
If, after all this, a floor with an inaccessible underside is still squeaking, it probably means that the cross braces are touching. Tearing the floor apart to get to the source is, of course, an option. But Mr Carter offered different advice: get over it, he said. Live with the squeak.
There are several different causes of squeaks, said Tim Carter, a columnist and the founder of askthebuilder.com, a homeimprovement website. You have to try to locate the problem by trial and error and use the easiest fixes first.
One type of squeak is caused when the subfloor - the material beneath the flooring or carpeting - moves up and down. As you walk across the floor, your body weight pushes the subfloor down, Mr Carter said. The squeak comes from the subfloor moving on the nail.
Floors can also make a noise if the floorboards were not properly nailed and, as a result, rub against each other.
A third cause, Mr Carter said, is improper installation of the cross bracing - the oneby-threes positioned beneath the subfloor in an X-pattern between the joists to keep them from twisting. One brace in each X is supposed to be slightly higher than the other,leaving a small amount of space between the two braces. If the bracing was installed incorrectly, he said, the braces can rub against one another and make a squeak.
If the bottom of the subfloor is accessible,you can see if the cross braces are touching.The braces can then be sanded or chiselled,Mr Carter said.
A device called Squeak-Relief (US$18 or 614 baht at squeakyfloor.com) can help keep a subfloor from rubbing against a nail. Jim Riesberg, who owns the Accuset Tool Company of Troy, Michigan, which manufactures the device, said it was designed with do-ityourselfers in mind.
Squeak-Relief is an aluminium brace that holds the subfloor tightly to the joist by fitting into the 90-degree space formed by the subfloor and the joist on which it rests. A set pin is hammered into the joist through a pre-drilled hole in the brace. A screw is then drilled through another hole and into the subfloor at a 30-degree angle. Then a longer screw is drilled up through a third hole and the joist and into the subfloor.
Since the pin and the screws will only fit the holes they're supposed to go in, its idiotproof, Mr Riesberg said.
If the floor's underside is not accessible if there is no basement or the cross bracings are covered by the ceiling of the room below - the guessing game begins.
The easiest remedy is to shoot finish nails through the floor and into the subfloor - or,for an even stronger hold, to use screws with small heads.
Varouj Nersesian, the owner of the Floor Sanders Company in Boston, said that in either case, the nails or screws should be driven just below the floor surface and the holes concealed with a filler in a colour that matches the floor. The whole floor could then be sanded and refinished, but if you're not too fussy, you can just sand and refinish the holes, Mr Nersesian said.
For floors covered by wall-to-wall carpeting,a kit called Squeeeeek No More ($19.95 at squeaknomore.com) allows screws to be used without removing the carpet. The kit, sold by OBerry Enterprises, a tool company in Ringwood, Illinois, includes 50 thin screws,a drill bit and a screw with special threading to detect when contact is made with a joist (other joists can then be located because they are spaced 40cm apart).
The screws are drilled through the carpet,into the floor and down into the joist. Their heads are designed to be broken off with a tool that comes with the kit, leaving the threaded section of the screw in place below the floor surface. Because the screws are thin, the repair is usually invisible (or the carpet fibres can be fluffed to hide them).
If, after all this, a floor with an inaccessible underside is still squeaking, it probably means that the cross braces are touching. Tearing the floor apart to get to the source is, of course, an option. But Mr Carter offered different advice: get over it, he said. Live with the squeak.
Tuesday, September 1, 2009
"STRONG THAILAND" STIRS INDUSTRIES
Business leaders are excited about the "Strong Thailand" policy, but need convincing that the government can proceed with the investment projects as planned.
"Now, we're waiting to see if the projects will be materialised, as we need to draw up a raw-material import plan," Santi Charnkorawee, president of Tata Steel, said yesterday.
The Bt1.4 trillion stimulus package would create demand for 1 million tonnes of steel, he said.
The stimulus projects, for which the bidding process is expected to start this month, are a little too slow in coming, as the steel price has risen from Bt16,000 per tonne early this year to Bt19,000-Bt20,000 now, he said. The government should set up a special unit to oversee the awarding of contracts, to ensure it moves speedily, he added.
Vallop Rungkijvorasathien, president of Sino-Thai Engineering and Construction, said that all construction companies, which have suffered from the disappearance of state projects for some time, are ready to tender for the jobs.
"The package is a hope to all companies, but we're concerned with the procurement process," he said. Out of the total budget, construction firms are aiming at Bt700 billion from logistics, irrigation and energy projects, he added.
"Now, we're waiting to see if the projects will be materialised, as we need to draw up a raw-material import plan," Santi Charnkorawee, president of Tata Steel, said yesterday.
The Bt1.4 trillion stimulus package would create demand for 1 million tonnes of steel, he said.
The stimulus projects, for which the bidding process is expected to start this month, are a little too slow in coming, as the steel price has risen from Bt16,000 per tonne early this year to Bt19,000-Bt20,000 now, he said. The government should set up a special unit to oversee the awarding of contracts, to ensure it moves speedily, he added.
Vallop Rungkijvorasathien, president of Sino-Thai Engineering and Construction, said that all construction companies, which have suffered from the disappearance of state projects for some time, are ready to tender for the jobs.
"The package is a hope to all companies, but we're concerned with the procurement process," he said. Out of the total budget, construction firms are aiming at Bt700 billion from logistics, irrigation and energy projects, he added.
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