Bangkok, July 17: Thailand wants assurances from Hong Kong's Hopewell Holdings Ltd that it will complete at least a portion of a delayed multi-level rail and highway system in Bangkok by late 1998, government officials said on Thursday.

The $3.2 billion project, originally due to be completed by 1999, involves construction of 60 km (37.5 miles) of multi-level railways and highways to relieve traffic congestion in the capital.

Hopewell chairman Gordon Wu is scheduled to meet transport and communications minister Suwat Liptapallop on Friday to discuss progress of the project.

A firm representing Hopewell in Bangkok said about 17 per cent of the project's 40-km (25-mile) phase one structural and civil works and 44 per cent of its piling works were finished in March.

Hopewell was holding talks with four new contractors to help speed up the project, it added.

A Hopewell official said on Thursday that about 30 per cent of phase one construction on the Rangsit-Yomaraj-Huamark route in the project had been completed.

Alan Good of Thai Bauer, contracted by Hopewell to undertake most of the project's piling work, told Reuters his firm had driven about 7,500 of phase one's 15,000 piles.

"We have basically completed over 50 per cent of the piling works for the north and east routes," he said.

Government sources attributed the delay partly to Hopewell's problems in raising equity and construction financing.

Hopewell raised its project equity to 15 billion baht ($517 million) from six billion baht during the first half of this year but the government in May asked it to double the figure by the end of 1997.

Hopewell said in March it would need $1 billion in equity funding and over $2 billion in project financing for the project.

Thailand said in May it would fine Hopewell 7.5 million baht for each day of phase one's delay, for a maximum total of 134 days, if the company failed to complete it by November 1998.

Analysts estimated that Hopewell had spent over $500million on the project. The firm has a 30-year concession to operate the toll mass transit system after its completion.

The project includes a toll road, an elevated train system, and upgrading of part of the existing state railway network in Bangkok.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.