Phrae's government center construction project, budgeted over 657 million baht, has concluded. After the contract expired and nearly two years of extensions, work progress was only about 25%. Officials believe the contractor, associated with Chinese investment groups, has abandoned the project. Recently, vehicles, workers, and equipment were removed from the construction site. The authorities must proceed with contract termination, claim damages, and find a new contractor.
On 8 March 2026, reporters reported that on 6 March 2026, the project monitoring committee for the Phrae Government Center construction, led by Mr. Nattanan Buasak, Director of the Public Sector Anti-Corruption Division 3; Ms. Sarisa Rodthaworn, Director of the Public Sector Corruption Prevention Division; Mr. Jakkrich Pholadaharn, Deputy Auditor General (Audit Office Region 9); Mr. Anucha Satyadit, Director of the Phrae Provincial Audit Office; Mr. Chanchai Kaewpradab, Special Expertise Investigator from the Department of Special Investigation (DSI); and Mr. Theeraphong Thongon, representative of Phrae's Governance, along with a total of 24 members,
attended a briefing on the construction status of the Phrae Government Center, where the contractor is suspected of abandoning the work. The meeting was held in the conference room of the Phrae Provincial Public Works and Town & Country Planning Office, Mueang Phrae District, Phrae Province, chaired by Mr. Chaisit Chaisamritphol, Deputy Governor of Phrae Province and project supervisor.
Mr. Sitthiphat Palanan, Director of Public Works and Town & Country Planning of Phrae Province, reported that Phrae received a budget allocation from the Office of the Permanent Secretary, Ministry of Interior, under the 2020 Fiscal Year Budget Act, to build the Phrae Government Center with a total budget of 657,115,400 baht. The procurement process was through electronic bidding, resulting in the contract awarded to Akkarok Development Co., Ltd., in partnership with China Railway Number 10 (Thailand) Co., Ltd.
The construction contract was valued at 539,995,000 baht, with a construction period of 1,080 days divided into 237 payment installments, starting from 31 March 2021 and ending on 14 March 2024.
Due to the COVID-19 pandemic, the project faced delays and was granted an extension of 554 days under the accelerated work measures, from 15 March 2024 to 19 September 2025.
However, by the end of this period, the project had only progressed about 25%. A daily penalty of 539,995 baht applies. The construction scope includes: 1. A 4-story provincial hall building; 2. An auditorium for 1,000 people; 3. A cafeteria building; 4. A clubhouse and commercial building; and 5. Site planning and related structures. Currently, actual accumulated construction progress is only 25.13%. Advance payments of 15% equaling 81 million baht were made. Payments for 36 installments total 63,759,200 baht, with 201 installments remaining unpaid, amounting to 395,235,800 baht, representing 73% of the contract value.
Mr. Nattanan Buasak, Director of Public Sector Anti-Corruption Division 3, stated that from on-site inspections, it is now clear that the contractor is removing vehicles, workers, and equipment from the government center construction site. They believe this likely constitutes abandonment of work. The process to cancel the contract with the contractor is underway, and a new contractor must be found.
The situation was explained by the contractor as being due to the COVID-19 pandemic, which caused delays and led to extensions. However, the contractor failed to meet the deadlines. On inspection, the work does not comply with the contract, representing a significant lost opportunity. Currently, calculations are underway to assess whether the work completed matches the funds received and to determine the extent of state damages requiring additional penalties.
The Phrae government center construction project has faced ongoing obstacles. Previously, the province and related parties invited media to inspect the site. The contractor firmly assured they would not abandon the work, but ultimately they did.
Further reports indicate that officials inspecting the site found the contractor beginning to remove workers and equipment, which is believed to be abandonment. The contract cancellation process is ongoing, preparations are in place to find a new contractor, and investigations continue into the damages to state funds as well as reconciling work progress with disbursed payments.
The contractor explained that delays were partly due to COVID-19 impacts, financial liquidity issues, and some bureaucratic procedures, all of which slowed construction. This project is important for Phrae Province, and if abandonment occurs, it will significantly affect regional development and state tax budgets.