Siemens 'not bitter' about Thai e-auction results

1st April 2005, Comments 0 comments

1 April 2005, BANGKOK - German industrial giant Siemens said on Friday it was satisfied with the outcome of an e-auction bid in Thailand that resulted in it losing two-thirds of a telecommunications project it had previously secured in a regular bid last year.

1 April 2005

BANGKOK - German industrial giant Siemens said on Friday it was satisfied with the outcome of an e-auction bid in Thailand that resulted in it losing two-thirds of a telecommunications project it had previously secured in a regular bid last year.

Siemens and its local partner Thaimark Solution Technology on Thursday won the Bangkok section, worth THB 2 billion baht (EUR 39 million) of a Telephone Organization of Thailand (TOT) project to install 565,000 fixed lines nationwide. Ericsson of Sweden won the other two zones.

Siemens initially won the entire installation project in a bid last year that would have cost TOT THB 6.5 billion (EUR 128 million), but Thai Prime Minister Thaksin Shinawatra decided in February this year to overrule the bid outcome and switch to an "e-auction", deemed more competitive and transparent.

Thursday's e-auction winners - Siemens and Ericsson - offered to make the installation at a combined price of THB 5.8 billion (EUR 114 million), down THB 700 million (EUR 14 million) from last year's price.

Siemens initially threatened to sue the government for failing to honour the initial bid outcome, although no contract had been signed.

The company later changed its tune.

"We decided not to take it to court even though we had grounds to do so," said Christian Onselaere, executive vice president of Siemens Communications unit in Thailand. "It would have been a long and wasteful battle with our client and we have to think about our future relationship with the government."

"We are not bitter, although I didn't like what happened," said Onselaere.

DPA

Subject: German news

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