A new page in
the history of the management of government projects was turned when DAD
introduced a new approach to mega project management, its effectiveness well-testified by
the construction of The Government Complex Commemorating His Majesty the King's
80th Birthday Anniversary, 5th December, B.E.
2550 (2007). The project
involved a transparent e-auction
witnessed by representatives from all parties concerned, encompassed the active
cooperation of all stakeholders and was completed on time and within the budget.
The Treasury Department thus saw the
need to introduce a new management approach for the construction of the
Government Complex, a public mega project to accommodate various public
agencies planned to be completed within 48 months.
So, the Ministry of Finance proposed
the establishment of Dhanarak Asset Development Company Limited (DAD)
to be the agency responsible for the entire project including fund
mobilization to ensure its smooth and efficient operation.
This was as an innovation in the history of Thailand’s civil
A mega project covering an area of
1,039,250 m2, the Government Complex cost nearly 20,000 million baht.
The construction involved numerous activities including the
construction of the office buildings, business buildings and parking buildings;
the installment of amenities and office supplies; landscaping; interior
decoration; and the networking of linkage roads to the project and so forth.
Moreover, funds were raised via
securitization, using rental contracts, service contracts, and furniture supply
contracts between DAD and the Treasury Department as security.
The design of each building to be attached to the agreement was
thus expedited so that the funds could be raised for construction.
The use of fixed amounts of money obtained had to prudently planned
and closely monitored. Construction
duration had to be set to coincide with the fundraising duration and the project
had to be complete on time to avoid inflated costs.
All these combined were likely to
pose difficulties and complexities over the project’s term so
efficient and transparent management was a top priority.
In order to meet its objectives and
to be a model for the management of future government mega projects, DAD
initially mobilizes consultants in various fields including project management
and construction supervision consultants (PMSC), a funding
consultant, master plan and detailed design consultants, and an environmental
impact assessment and traffic planning consultant.
These consultants then combined their efforts to establish a plan
and work together.