The Ministry of Transport on Friday ordered a 15-day halt to construction across 14 contracts linked to Italian-Thai Development Plc (ITD), along with other major infrastructure projects under its oversight, as authorities move to reassess safety standards following two fatal crane-related incidents in as many days.
The suspension comes after a passenger train derailment in Nakhon Ratchasima on Wednesday that left 32 people dead, followed less than 24 hours later by another deadly accident on Rama II Road in Samut Sakhon, where two drivers were killed when their vehicles were crushed by a collapsing crane.
Officials confirmed that both tragedies were caused by crane failures at Italian-Thai construction sites.
ITD, founded in 1958 through a partnership between Italian and Thai investors, said it accepts responsibility for providing care, compensation and remedial measures for losses arising from both incidents.
According to Chirapong Theppithuck, deputy permanent secretary of the transport ministry, the temporary suspension will allow specialist inspection teams to carry out thorough safety assessments to determine whether required standards have been properly observed.
Mr Chirapong also directed that other large-scale projects commissioned by the ministry suspend construction for up to 15 days to undergo similar inspections, with legal or regulatory action to follow where necessary, the ministry said.
‘Danger to the Public’
The latest crane collapses add to a growing list of fatal construction accidents in Thailand, several of which have involved ITD. Among them was the collapse of the nearly completed State Audit Office (SAO) tower in Bangkok last March, which occurred after a 7.7-magnitude earthquake struck Myanmar.
That incident claimed at least 96 lives and resulted in negligence charges being filed against 23 people, including ITD president Premchai Karnasuta.
Data from the Stock Exchange of Thailand shows that ITD secured seven state construction contracts in 2025 with a combined value exceeding 26 billion baht.
Acting Prime Minister Anutin Charnvirakul, who is preparing for a general election on Feb 8, reiterated on Friday that the government would terminate ITD’s contracts for the two projects linked to the recent accidents and pursue legal action against the company.
The projects include an elevated highway running above Rama II Road and the construction of concrete structures for part of an elevated high-speed rail line in the northeast, intended to eventually connect Thailand with China via Laos.
“The government sees this as a danger to people’s lives and property and has instructed the transport minister to terminate the contracts,” Mr Anutin told reporters.
“In this case, actions have posed a danger to the public. Therefore, we must use an administrative order to proceed.”
Despite the remarks, ITD said in a filing to the Stock Exchange of Thailand earlier on Friday that the two contracts remain valid and in effect.
Analysts warned that a unilateral cancellation by the government could expose the state to financial penalties, noting that any move by a caretaker administration that binds a future government to such costs could contravene constitutional provisions.
The unfolding situation has further darkened prospects for ITD, which is currently seeking investor approval to restructure roughly $446 million in debt.
On Friday, the company held an online meeting with bondholders to request a three-year extension on the maturity of five bond series as part of a broader restructuring plan. The outcome of the meeting has yet to be disclosed.
Mounting liquidity pressures have already forced ITD to divest overseas holdings, including a cement business in India and a mining operation in Thailand.
Between 2020 and 2024, the company recorded accumulated losses of around 13 billion baht after taking on large engineering projects in markets such as India, Taiwan and Myanmar, where the imposition of military rule led to delays and asset write-downs.
Italian-Thai reported a net profit of 7.4 billion baht in the first nine months of 2025, supported by gains from the sale of an overseas unit, even as revenue from its core construction business continued to decline.
