The Governor of Phrae Province clarified six key points about the Chinese contractor abandoning the new provincial government center construction, affirming transparency and the absence of corruption. He stated that every step complies with legal regulations, with no solicitation or acceptance of illicit benefits, and preparations are underway to take legal action due to the contractor's delays.
On 9 March 2026, reporters noted widespread national news about the Chinese contractor abandoning the new Phrae Provincial Government Center construction located in Nam Cham Subdistrict, Mueang Phrae District, Phrae Province. It has become clear that the company has removed vehicles, workers, and equipment from the site, strongly suggesting job abandonment. The cancellation process of the contract with the contractor is underway, and a new contractor must be found.
Regarding this matter, reporters visited the Phrae Provincial Hall and coordinated outside the governor's office, learning that Governor Somchai Lertprasitphan posted a clarification on his personal Facebook page, “Somchai Pai Lek,” on 28 January 2026. He stated, “I want to communicate clearly with the people of Phrae to ensure correct understanding about the construction of the new Phrae Provincial Government Center (new provincial hall). There is indeed a problem, but I want everyone to understand the issue correctly, with respect.”
#Clarification of facts regarding the problem with the new Phrae Provincial Government Center construction by the Governor of Phrae Province.
#Clarification of facts concerning the new provincial government center construction problem.
1. The construction site is on state property (commonly called “public land”), so no land purchase is required. The land is leased according to government rates, funded directly from the Ministry of Interior to the Ministry of Finance. Therefore, any allegations of corruption related to land purchase funds are unfounded.
2. The procurement process followed electronic bidding procedures as prescribed by law. Bidders submitted their proposals without meeting the budget-holding agency, and bidders had no knowledge of competitors’ bids until the submission deadline passed, after which the lowest bid was announced.
3. By law, electronic bidders must meet qualifications and not have prohibited characteristics as stated in the bidding announcement. The budget agency must appoint a committee to verify these qualifications and prohibitions before allowing bidders to participate.
4. By law, the budget agency must contract only with the lowest electronic bidder unless there are other issues, such as the selected bidder later lacking qualifications, abandoning the project, failing to sign the contract, or not providing a bank guarantee. In such cases, the agency may cancel the bidding or negotiate with the next lowest bidder. #Since the AKC joint venture submitted the lowest bid, Phrae Province, authorized by the Ministry of Interior, had to contract with them according to the electronic bidding results.
5. Large-scale construction contracts must divide work and payments into stages, depending on project size. After each stage’s completion, the contractor submits the work for inspection. The budget agency appoints a committee to verify the work against the TOR; if acceptable, payment is authorized. #For the Phrae Government Center, the project is divided into 237 work stages over 1,080 days, with the contract from 31 March 2021 to 14 March 2024. However, due to the COVID-19 outbreak after contract signing, the winning bidder could not begin work on schedule. The Cabinet approved a zero-penalty rate for all contractors unable to work during COVID. The joint venture received a zero penalty exemption for 554 days (from 15 March 2024 to 19 September 2025).
6. When the contract ended on 14 March 2024, the AKC joint venture had completed only about 10%, but due to the zero-penalty concession, they were allowed to continue. Meanwhile, Phrae Province and the contract inspection committee have consistently monitored, expedited, and advised on problem-solving, raising construction progress to about 40%. However, as the zero-penalty period ended and daily penalties of about 500,000 baht began on 20 September 2025, exceeding 10% of the contract value, Phrae Province must comply with the law by submitting to the parent agency for approval. Failure to do so would constitute neglect of duty.
Based on these facts, it is affirmed that Phrae Province, through Governor Somchai Lertprasitphan since 2021 and his successors authorized by the Ministry of Interior, has performed duties according to all legal regulations, with no solicitation or acceptance of illicit benefits related to the new Phrae Provincial Government Center construction as alleged. The province has consistently expedited and monitored construction and provided progress updates through various media for public awareness. The Ministry of Interior, as budget owner, will make decisions accordingly, which will be communicated in due course.
However, Governor Somchai declined to give interviews, directing reporters to refer to his explanatory post on his personal Facebook page “Somchai Pai Lek.” He explained that the issue did not begin during his tenure; he took office after construction had started. The events have proceeded according to laws and government regulations, and he has already provided several clarifications.
In the latest update, reporters were informed that Governor Somchai Lertprasitphan will convene a meeting with department heads and related agencies to further explain the situation to the media.