MRTA backs rail arbitration

       The Mass Rapid Transit Authority is asking the cabinet to accept arbitration in disputes involving its Purple Line electric railway project, to help secure financing.
       The creditor, Japan International Cooperation Agency (Jica), wants recourse to arbitration in the event of a dispute.
       But in a July 28 decision, the cabinet decided to exclude the arbitration option.
       MRTA chairman Supoj Saplorm met Transport Minister Sohpon Zarum yesterday to discuss the cabinet's decision to exclude the option of an arbitration committee to resolve any dispute involving the Purple Line which will link Bang Sue and Bang Yai.
       Mr Supoj asked the minister to try to convince the cabinet next Tuesday to restore the arbitration condition in the 50 billion baht electric railway project,because without the condition Jica would not finance the work.
       An arbitration committee would consist of a representative of the government,a representative of its contractor and a third member acceptable to the government and the contractor.
       Mr Sohpon said arbitration was an internationally recognised mechanism to speed up the process of dispute resolution which otherwise could become bogged down in court.
       However, the cabinet decided to exclude arbitration from governmentprivate projects because the mechanism had failed in the past to benefit the state.
       "Arbitration is an international principle," the minister said.
       "It is applied overseas without a problem but it always causes problems in our country and the government is at a disadvantage.
       "I know well what is going on but cannot elaborate. The problems rest with the people who implement it. As there are problems, the government resolved to exclude it and ordered compliance with Thai law in the event of a dispute."
       MRTA deputy governor Chukiat Photayanuwat said Jica believed the contracts for the Purple Line project were international agreements and should include the arbitration option.
       MRTA chairman Supoj said with the arbitration issue unsettled, work on the Purple Line could not start even though the MRTA had signed one of three contracts for the project.