The Digital Economy and Society (DES) Ministry says it plans to negotiate with the TH-AI Passport project provider to adjust contract details regarding the pay-per-use concept, in an effort to tamp down public criticism and ensure optimal benefits.
The payment will be based on the actual number of project users, said DES permanent secretary Patchara Anantasilp.
Any adjustments will be linked to the terms and conditions of relevant contracts, he noted.
“The project cannot proceed with its original conditions after the government heard public concerns, as we intend to maintain the public’s benefits,” said Mr Patchara.
The ministry held a public hearing on Thursday to clarify the project.
Under the first phase of the project, the government plans to spend around 1.6 billion baht to procure professional and premium generative artificial intelligence (AI) models for 5 million Thais to use for free.
However, questions surrounding procurement procedures, project scope, budget transparency and the selection of the winning bidder have triggered scrutiny from opposition politicians, academics, industry stakeholders and civil society groups.
The winning bidder was TH Consortium, which consists of Turnkey Communication Services Plc, a Thai ICT engineering solutions specialist, and Human Intelligence Co Ltd, a joint venture between Thai and Hong Kong investors building digital education infrastructure in Thailand.
The hearing attracted around 500 people, including several politicians, academics and students.
Participants included DES Minister Chaichanok Chidchob, Mr Patchara, a representative from Human Intelligence, and a representative from Microsoft (Thailand).
The Human Intelligence agent said the company expects to negotiate with the ministry to ensure the best possible outcome for the public.
Mr Patchara said the project offers 14 brands and 31 models of premium AI platforms, targeting three groups: students, government personnel, and the public, including small businesses.
The project’s price comparison was conducted using proposals from eight bidders to determine the project’s outcome.
NEGOTIATIONS TO BEGIN
“If the contractor intends to demonstrate transparency and sincerity, I believe this matter should be negotiable,” Mr Chaichanok said.
He said the ministry must wait for Mr Patchara to gather all information and proceed with the negotiations.
“This is a critical point because it signifies we are amending the contract conditions, not cancelling the contract,” said Mr Chaichanok.
Mr Patchara said the contract was signed and the terms of reference (ToR) cannot be cancelled, though payment has not been made to the winning bidder.
Payment is divided into five instalments, with the first payment due after the contractor submits the initial project plan and performance results.
“The ToR cannot be cancelled, but we are in the process of contract management, allowing the contractual parties to negotiate additional provisions for the public benefit,” he said.
TIES TO THE WINNING BIDDER
Mr Chaichanok admitted he was familiar with the project winner before the bidding, but said this was normal, akin to knowing people in other businesses or projects in sectors unrelated to the DES Ministry.
He insisted he had no involvement in the procurement process.
During the hearing, Teerachai Kotrakul, a former parliamentary candidate for the People’s Party, questioned the transparency of the project’s procurement, the drafting of the ToR, and possible links between political figures and the winning contractor.
Mr Teerachai said several important questions remained unanswered, particularly the project’s quick development, the design of procurement requirements, and the rationale behind certain public relations components specified in project documents.
He asked whether senior minister officials or political executives had personal relationships with the winning bidder.
The issue has attracted public attention, especially regarding requirements involving advertising placements at convenience stores and airports, which critics said resemble specifications found in another government project under a different ministry.
Mr Patchara said a contractor cannot be unilaterally terminated, and the ministry has no intention of cancelling the agreement.
LOTS OF QUESTIONS
Mr Teerachai also questioned the proposed use of outputs generated by foreign AI models to help develop Thai AI capabilities, warning such practices could potentially conflict with the terms of service or intellectual property rights of overseas AI providers.
In addition, he noted the project’s implementation timeline required the platforms to be used be registered within 30 days of the contract signing, offering full operations within 90 days of the contract signing. This schedule is unusually quick for such a large project, said Mr Teerachai.
The compressed timeline has fuelled speculation that the contractor may have had prior knowledge of project details, or begun preparations before the contract was officially awarded, he said.
Karndee Leopairote, Democrat Party deputy leader and MP, asked the ministry to clarify which path will be taken: continue with the original plan, continue with significant modifications, or completely change the vision and start afresh.
“Instead of the questionable goal of distributing services to 5 million people, which many doubt is feasible or cost-effective, we should pivot our thinking towards supporting local AI entrepreneurs. Many of them are struggling; we need to find ways to help them grow and create sustainable jobs,” said Ms Karndee.