BMTA gets Cabinet nod to develop its lands for market, mixed-use projects

BMTA gets Cabinet nod to develop its lands for market, mixed-use projects

By THE NATION

The Cabinet has approved in principle the amendment of the royal decree on the establishment of the Bangkok Mass Transit Authority (BMTA), allowing it to conduct other businesses or make investments that are beneficial to the BMTA's operations.

Deputy government spokesperson Trisulee Trisaranakul said on Friday that the amendment was a part of BMTA’s rehabilitation plan to reduce its overwhelming debt, as proposed by the Ministry of Transport.

“Earlier, the ministry had told the BMTA to study the possibility of developing its lands currently used as a bus garage for commercial uses,” a source from BMTA revealed.

“Two pieces of lands had been proposed for the project: The Minburi bus garage has 10 rai (1.6 hectare) available with market value of Bt347 million, and the Bang Khen bus garage, which has 11-1-93 rai available with market value of Bt1.14 billion.”

In 2017, BMTA hired Thammasat University Research and Consultancy Institute to conduct a feasibility study of the project. The institute concluded that the land at the Minburi bus garage should be developed into a market while the land at Bang Khen bus garage should be developed into a mixed-use project comprising shopping malls and upper class hotels.

“According to Thammasat’s estimation, BMTA can collect land usage fee at 30 per cent of market value from private partners who will engage in land development worth approximately Bt361 million, and can collect land rental fee throughout the 30-year contract worth Bt1.206 billion,” added the source. “However, the project was put on hold as commercial use of land does not comply with the objectives of establishing the BMTA as stated in the royal decree. Consequently, the Ministry of Transport proposed the amendment to the decree.”

Source: https://www.nationthailand.com/news/30399495