Phrae Province Updates on Government Center Construction, Discussing Contract Termination with China Railway

Phrae Province has clarified the progress of the Government Center construction project, which has a total budget of 539,995,000 baht. Discussions are ongoing to terminate the contract with China Railway. The province is preparing to strictly follow legal procedures and confirms it is accelerating problem-solving and planning to ensure the Government Center project in Phrae Province can continue moving forward in the future.

On 10 March 2026, reporters reported that the Phrae Provincial Office released a statement explaining the progress of the Government Center construction project in Phrae Province, stating:

Phrae Province wishes to clarify the progress of the Government Center construction project in Phrae to provide the public and media with accurate information about the project's current status.

The Government Center construction project in Phrae Province is located on land in Nam Cham Subdistrict, Mueang Phrae District, Phrae Province, covering approximately 86 rai. The total construction budget is 539,995,000 baht. Phrae Province is the client, and the contractor is the AKC joint venture, consisting of Akkharak Development Company and China Railway Number 10 (Thailand) Company.

The project began on 31 March 2021, with a contract specifying a construction period of 1,080 days, set to complete by 14 March 2024. The construction work includes:

• The 4-story Phrae Provincial Government Center building.
• A 1,000-seat auditorium building.
• A cafeteria building.
• A club and shop building.
• A pedestal for the statue of King Chulalongkorn the Great.
• Site layout and associated structures.
  
  However, recently the project has been affected by the COVID-19 pandemic situation, leading the government to implement measures to assist contractors. Phrae Province has relaxed fines to zero percent for 554 days and revised the work plan to allow the contractor to continue the project.
  
  Although Phrae Province granted extensions and opportunities to continue work, the latest data as of 12 January 2026 shows that:
  
  
• The overall construction progress is only 25.07%. Breaking it down by building, the Government Center is 39.76% complete, the auditorium 48.75%, cafeteria 55.5%, club and shop 55.5%, and site layout and associated structures only 4.00%.
• This represents a delay of 74.94% compared to the planned schedule.
• Fines under the contract have already been incurred for 115 days.
• The fines amount to approximately 62 million baht, exceeding 10% of the contract value.
  
  Additionally, Phrae Province found that the contractor has not continuously deployed personnel or machinery, including removing major machinery from the construction site, lacks supervisors in certain professional fields as required by contract, has not renewed performance bonds as stipulated, and refuses to pay incurred fines.
  
  Phrae Province has carefully considered the situation, having continuously monitored and pushed the construction both formally and informally, providing the contractor multiple chances to improve work, aiming for project completion for the public's benefit. However, given the current behavior and progress, Phrae Province sees that the contractor cannot complete the work as per the contract.
  
  Currently, Phrae Province is consulting with the Phrae Provincial Attorney’s Office to consider legally terminating the contract, using authority under the Public Procurement and Supplies Administration Act B.E. 2560 (2017).
  
  Following contract termination, Phrae Province will strictly follow legal procedures to protect government and public interests, focusing on key actions including:
  
  
• Collecting fines and damages from the contractor as per the contract.
• Seizing contract guarantees and related securities according to the law.
• Considering blacklisting the contractor as a defaulter according to government regulations.
• If legal violations are detected, Phrae Province will pursue civil and criminal proceedings against involved parties without exception.
• The province will also allocate budget and conduct procurement according to the Public Procurement and Supplies Administration Act B.E. 2560 to ensure project continuity.
  
  Phrae Province affirms its commitment to expedite problem-solving and plan so that the Government Center construction project can proceed in the future, benefiting the public and government services in Phrae Province.