BTS to shoulder Bt100 billion construction cost in exchange for 30-year extended concession

[webfact]

BTS to shoulder Bt100 billion construction cost in exchange for 30-year extended concession

By The Nation

 

 

The Bangkok Metropolitan Administration will negotiate with the Bangkok Mass Transit System (BTS) to shoulder the cost of construction of two extended BTS Skytrain routes worth Bt100 billion in exchange for the extension of its license for 30 years, a senior official said.

 

Manit Techa-apichoke, president of BMA-owned Krungthep Thanakhom Co Ltd, said the state firm was empowered by Article 44 of the interim charter to conduct negotiations with the BTS over the Bt100 billion debt transfer and concession extension.

 

Manit said the negotiation should be completed in about two months.

 

If the BTS agrees to shoulder the cost of construction of the two extended routes plus accrued interest worth Bt100 billion, the BMA will grant a new 30-year concession for the main routes and all extended routes. The debt covers the construction cost of the northern route of Morchit-Saphan Mai-Khukot extension and the southern route or Bearing-Samut Prakan extension.

 

If negotiations are successful, the concession for the main routes from Mor Chit to On Nuj and the National Stadium to Tak Sin Bridge, which will end in 2029, will be extended to 2059, Manit said.

 

And the contract for hiring the BTS to operate two extended routes from On Nuj to Bearing and from Taksin Bridge to Bang Wa, which will expire in 2042, will also be extended to 2059, Manit said. The BMA has paid for the construction cost of these two routes and hired the BTS to operate the extended routes.

 

The concession for operating the Bearing-Samut Prakan extension and Morchit-Saphan Mai-Khukot extension will also run to 2059, he added.

 

Manit said the BTS would be asked to shoulder the cost of construction of the Morchit-Saphan Mai-Khukot route and Bearing-Samut Prakan route, which have been built by the Mass Rapid Transit Authority of Thailand (MRTA). The MRTA has built the elevated railways for the two routes and will require the BMA to pay for the construction cost while the BMA will in turn ask the BTS to shoulder the cost.

 

On Monday, Manit and Surachet Laopoolsuk, deputy governor of MRTA, witnessed the test-run of a BTS Skytrain for one station on the extended Morchit-Saphan Mai-Khukot route. The test-run ended at the Lat Phrao Intersection station.

 

Surachet said the MRTA has finished the construction of the elevated railway and that Krungthep Thanakhom and BTS started installing the electric and train controls system in March.

 

Surachet said the Skytrain service to the Lat Prao Intersection service would be available from August 11 in a free test-run period and it will be extended to the Kasetsat University Intersection in December. The entire route service to Khukot will be operational in late 2020, he added.

 

Surachet said before the BMA could provide the test-run service to the Lat Phrao Intersection, it must first sign a memorandum of understanding to take up the cost of construction of the Morchit-Khukot route for Bt26 billion. The MRTA will ask its board on July 25 to approve the debt transfer to the BMA, Surachet added.

 

Manit said the BMA would also ask BTS to limit the fare to Bt65 and the BMA would find an appropriate model to subsidise the fare for the BTS.

 

Meanwhile, Surapong Laoha-Unya, BTS executive director, said it would be difficult to accept the BMA’s demand for the BTS to shoulder the construction cost and at the same time limit the ceiling of the fare of the entire route at Bt65 without a state subsidy.

 

Source: http://www.nationthailand.com/business/30372607

 

-- © Copyright The Nation Thailand  2019-07-09

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[moe666]

The limit of the fare to 65b is the sticking point for the BTS as not viable

[wreckingcountry]

Typical of the way things work ! BTS knows it doesn’t deserve to continue to have contract ! Bribery and corruption rules the day on LOS



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[wreckingcountry]

The limit of the fare to 65b is the sticking point for the BTS as not viable

I’m sure it would like to charge 165baht ! Monopoly pathetic service


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[yokat]

BTS is sitting on a lot of cash and is not only dealing in skytrains, I'm sure they can shoulder a little hundred billion.

 

In 2018 they had 240M passengers travelling an average 7 stations (roughly 40 baht), and with the new stations it will only grow. That's about 10B baht from passengers and they also reported 6B baht income under the "Service income" section.

https://btsapp1.bts.co.th/WebApplication//WareHouse/UploadPdf/201261132833th_eng_annual_report_2017-2018.pdf

[Cadbury]

40 minutes ago, webfact said:

president of BMA-owned Krungthep Thanakhom Co Ltd, said the state firm was empowered by Article 44 of the interim charter to conduct negotiations with the BTS........

The rush is on to get dodgy deals done and envelopes shuffled around before Article 44 goes up in a puff of smoke when the new government is installed by the end of the month.

[Srikcir]

7 hours ago, webfact said:

it would be difficult to accept the BMA’s demand for the BTS to shoulder the construction cost and at the same time limit the ceiling of the fare of the entire route at Bt65 without a state subsidy.

So BTS wants a guarantee state-funded profit margin paid by the Thai taxpayer in exchange for BTS funding.

No wonder Article 44 had to be invoked to conduct negotiations with the BTS. It removes all federal procurement regulations and bypasses corruption laws.

[hotchilli]

Sounds iffy to me.

[PerkinsCuthbert]

However the cake is sliced, you can be sure of two things: the winners will be the current operators, and the bulk of Thai citizens will be able to afford the BTS even less in the future than they can now. 

[rwill]

9 hours ago, webfact said:

Manit Techa-apichoke, president of BMA-owned Krungthep Thanakhom Co Ltd, said the state firm was empowered by Article 44 of the interim charter to conduct negotiations with the BTS over the Bt100 billion debt transfer and concession extension.

And now we know why the new government can't be formed yet.  New government = no Article 44

[wreckingcountry]

Worst mass transport system in the world ! Licence to print money poor monopoly service


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[josephbloggs]

8 hours ago, wreckingcountry said:

Worst mass transport system in the world ! Licence to print money poor monopoly service


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You really do make yourself look very silly making comments like that. Either you don't like in Bangkok or you've never traveled anywhere else.  Either way you lose all credibility by making such a ridiculous and childish statement as that. 

[wreckingcountry]

You really do make yourself look very silly making comments like that. Either you don't like in Bangkok or you've never traveled anywhere else.  Either way you lose all credibility by making such a ridiculous and childish statement as that. 

Nonsense ! You lose credibility and need to get out of Bangkok bubble


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