This transport privatization case describes the political complications that can accompany a privately funded infrastructure project. The case tells the story of a Japanese construction company and its relationship with the Government of Thailand. The company Kumagai Gumi is invited to U.S. $ 1 billion, 20-kilometer expressway in Bangkok to build and operate it as a toll road, as part of a 30-year concession contract. But a 1995 labor dispute urges the Thai government to force Kumagai gum to open first … Read more »

This transport privatization case describes the political complications that can accompany a privately funded infrastructure project. The case tells the story of a Japanese construction company and its relationship with the Government of Thailand. The company Kumagai Gumi is invited to U.S. $ 1 billion, 20-kilometer expressway in Bangkok to build and operate it as a toll road, as part of a 30-year concession contract. But a 1995 labor dispute calls to force the Thai government Kumagai gum first, to open the road, but then to sell it in Thai investors. The case can be used for discussion of both technical and political nature, which. Information on the arrangement of the client, but also the question of internal political dimensions in public projects with non-resident individual investor HKS case number 1401.0
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Jose Gomez-Ibanez
23 pages.
Release Date: 1 January 1997. Prod #: HKS165-PDF-ENG
Bangkok Second Stage Expressway HBR case solution

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