By Siriporn Chanjindamanee,
Chalida Ekvitthayavechnukul
The Nation
Published on November 11, 2009
(Posted by CAAI News Media)
Construction-service provider Capital Engineering Network (CEN) fears it will be blocked from bidding for projects in Cambodia, following the diplomatic dispute which the Board of Investment says has affected Thai investment there.
BoI secretary-general Atchaka Sibunruang Brimble acknowledged yesterday that existing Thai investment had been damaged by the conflict, most of it in light industries such as event organisation and hotels.
"We are gathering information on how the dispute will affect investment between the two countries. But so far, no investors have come to us for help. I hope the conflict will be resolved as soon as possible," she said.
Since 1994, Thais have been involved in 1,527 projects in Cambodia with combined investment of US$7.8 billion (Bt260 billion).
CEN now sees grim prospects for its bidding for a Bt2-billion electricity-pole installation contract together with investors from Singapore and Malaysia, as well as for bidding for other projects worth about Bt1 billion combined.
Its subsidiary Ua Withaya was designated to launch the bids.
"We're afraid that we may be disqualified as a Thai company. Things should be clear within a few months," said CEN executive chairman Torsak Chotimongkol.
Aside from Cambodia, CEN is looking to expand into Burma, starting with a roadshow with Thai and foreign property companies.
Chief executive officer Wutichai Leenabanchong said CEN expected Bt2 billion of revenue next year, against its target of Bt1.6 billion for this year, due to the improved performance of subsidiaries.
This would enable the company to swing back to net profit, after a nine-month loss of Bt26 billion.
Ua Withya, the maker of 500-kilovolt electric wiring, expects a joint venture in which it owns 30-40 per cent will win Bt3 billion worth of contracts next year.
CEN plans to spin off Ua Withya and another subsidiary, Rayong Wire Industries, for listing on the Stock Exchange of Thailand.
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