The state-run Korea Water Resources Corp., or K-water, expressed concerns that its combined 6.2 trillion won ($6.1 billion) water management projects in Thailand may slip through its fingers following a recent mandate by the National Council for Peace and Order, Thailand’s highest military organization, to halt the plans.

The South Korean consortium led by K-water is responsible for two of the 10 projects, the A-3 and A-5, worth about 380 billion won and 5.9 trillion won, respectively. The 10 projects are altogether worth some 11 trillion won. The plans were designed to help bolster Thailand’s water management and flood prevention infrastructure.

K-water, which was named the priority negotiation partner for the projects, had maintained the upper hand throughout the bidding process in 2013 before winning a project for building floodways in eastern Thailand and another for reservoirs in the west.

That was before the NCPO came up with the new policy for completely reassessing the projects.

K-water and other foreign contractors are now raising concerns that the latest announcement may lead to potential investment losses for Thailand.

Under the new policy measures, the NCPO has called for a temporary halt on operations while it reexamines the plans, which had been pushed forward by the administration of former Prime Minister of Thailand Yingluck Shinawatra, essentially bringing the project back to square one, according to reports by The Nation and Bangkok Post, two English dailies in Thailand.

“We are not canceling the water management projects but merely reassessing them in order to promote a more efficient and transparent process,” NCPO deputy spokesperson Winthai Suvaree was quoted as saying. “This is not a retraction, but a temporary suspension.”

The subcontract builders from the K-water consortium include Hyundai Engineering and Construction, GS E&C, Daewoo E&C, Daelim and Samwhan.

If the projects are concluded, it will mark the first time for South Korea to export its water management know-how overseas.

By Kim Joo-hyun (jhk@heraldcorp.com)