Clarifies Situation on the Bidding for Construction of 5 Activities at SuvarnabhumiAirport

Thai   Airways International Public Company Limited (“THAI")   clarifies that for the bidding of THAI’s five Activities at the Suvarnabhumi Airport, all processes were carefully monitored.

The bidding for the construction of THAI’s five Activities at the Suvarnabhumi Airport which include, Cargo & Mail Commercial, Ground Support Equipment Services, Aircraft Maintenance Center, Catering and Operations Center, was held in July 2003 and 3-7 bidders participated. All bidders were able to propose a bidding price and had to meet the qualifications stipulated under the Terms of Reference (TOR), set by the Thai Cabinet on January 6, 1998.

The bidders were required to provide two proposals, one being in the technical area and the other with regard to the bidding price. As the construction of the company’s five activities requires high technical standards, unlike other buildings, the contractors have to be experienced, provide low construction cost and able to provide Fast Track construction in order to meet the finish deadline. Those bidders satisfied the requirements able to participate at the bidding process. The Company and the consultant team comprising of the Project Management Consultant, Construction Supervision Consultant and Design Consultant carefully rated the technical proposal. During the price proposal bidding, the bidders and members of the press were invited as witnesses, including the Office of the Auditor General of Thailand.

All terms of reference were approved by the Attorney General. All process are in compliance with the recommendations made by the Attorney General and Internal Auditing Office. The initial bidding price was set at 6% lower than usual bidding despite the complexity of the construction technique required by those activities. Furthermore, THAI saved up to 400 million baht for the actual amount paid to the contractors when compared to the usual bidding.

The construction of THAI’s five Activities at Suvarnabhumi Project will be finished and all systems tested, ready for service by September 29, 2005, as set by the Thai government.