Plans to build a new international airport in Bangkok at a site formerly known as Nong Guhao (Cobra Swamp) are in the works. In 1996, the Thai king named the site Suwannaphum, which means ``the land of gold'' and is an ancient name of the Southeast Asian continent. While the news was given relatively wide coverage in Thailand, few Japanese newspapers have reported it. However, I think it is a problem that deserves more attention for people who are concerned about the friendship between the two countries.
Don Muang Airport, which currently serves Bangkok, is not only small but is also built on land owned by the air force and is used regularly by military aircraft.
For these reasons, the Thai government has been planning and conducting feasibility studies for the construction of a new international airport for the last 40 years.
The propriety of Nong Guhao, south of Bangkok, as an airport site was repeatedly discussed until 1995, when the government established the new Bangkok international airport company to oversee its construction and operation.
But it is questionable how much work the company has accomplished since then. The slow progress is partly due to the frequent change of Cabinets. In fact, Thailand has seen four prime ministers-Banharn, Chavalit, Chuan and Thaksin-in the last six years.
The Japanese side is believed to have been involved in the airport project before the establishment of the new company, after which Japan and Thailand agreed that the Japan Bank for International Cooperation (JBIC) would provide financing for the project. However, the financing has yet to be implemented and the contents of the agreement have not been disclosed, at least by the Thai side.
When an open bid for the construction of the new Suwannaphum airport designed by a group of companies, including Murphy Jahn, was held about two years ago, in addition to Japan-Thai joint ventures, nine groups, including the Hyundai and Samsung groups from the Republic of Korea (South Korea) and German and other European companies, put in tenders. Of them, only four Japan-Thai joint venture groups passed the initial screening. Officially, the bid was open. Actually, however, it is possible that only companies with Japanese ties were allowed to take part in the bid for a project made possible by a Japanese low-interest loan. Such practice has been customary in the past.
As far as relations between Japanese and Thai construction companies are concerned, since they are forming joint ventures and split areas of business between them, there appears to be no problem. The Thai partners of the joint ventures all maintain good relations with influential Thai political parties. Therefore, it was believed that at least one of the four groups would win the contract and the Thai government would start the process to receive the loan from JBIC as a matter of course.
Actually, however, a problem occurred toward the end of the Chuan administration. In addition to the fact that the bidding prices proposed by the four groups were high, ranging from 56 billion baht to 64 billion baht (156.24 billion yen to 178.56 billion yen), irregularities by Thai officials concerning reclamation surfaced.
It is unclear whether the prices quoted by the four groups were high because they had access to JBIC's internal documents. However, as Nobutoshi Akao, Japanese ambassador to Thailand, revealed in a recent interview, JBIC had planned to observe the traditional agreement to provide 70 billion baht (up to a maximum of 120 billion baht), the amount of JBIC's planned financing was quite large.
The Thai government explained to the people that the price was too high and should be lowered to 36 billion baht. The government requested the architectural firm to modify the plan and decided to hold a bid again, this time with 36 billion baht as the standard price. In the end, one of the Japan-Thai joint ventures won the bid. However, in Thailand, holding a bid for the second time for a construction project means construction companies paying visits to politicians again.
As far as the Japanese side is concerned, none of the construction companies or JBIC has commented on the problem.
Ambassador Akao alone expressed discontent over the matter and has issued a written statement of protest and met with the persons concerned. While the conduct may be interpreted as a required duty of an ambassador, looking at it from another angle, his behavior seems to signify that the embassy lacks the ability to settle matters without stirring trouble.
The way the ambassador openly came to the fore appears undue to Thais.
Japan and Thailand have traditionally maintained close and friendly relations. However, in the last four to five years, although they still remain friendly, they are not as close as they used to be. At a time when the global political and economic environment is changing, Thailand and other members of the Association of Southeast Asian Nations are struggling for survival and looking to Japan for support. But Japan seems to lack the will to play a positive role as a leader and supporter of this region. I believe that is the reason for the growing distance between them.
Japan's aloofness seems to have led the former Thai administration to attach greater importance to Western countries and the current administration to look toward its neighbors and China.
At the same time, Japan appears to be attaching greater importance to its relations with East Asian countries and the United States and lacks a clear policy in dealing with ASEAN countries, including Thailand.
Trouble between the Thai government, JBIC and the Japanese embassy may appear trivial to the Japanese government.
But this seemingly inconsequential matter could cause a rift between Japan and Thailand, which are not as close as they used to be, and could estrange them even more.
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Airport construction causes Tokyo-Bangkok rift