Major Foreign Firms Interested In Subway Project

[george]

Major foreign firms interested in subway project

BANGKOK: -- Three major foreign companies have expressed interested in investing in five subway projects in Bangkok, according to the head of the Mass Rapid Transit Authority of Thailand (MRTA).

The firms are also prepared to set up an assembly plant worth more than 100 billion baht, the MRTA governor Prapat Chongsanguan told TNA.

The 168-kilometre extension of five subway routes, operated by MRTA, will need a capital investment of more 250 billion baht. Its construction is expected to be completed within the next six years.

Representatives from the Spanish company Caf and the French firm Alstom are scheduled to discuss the subway projects with MRTA later this week. The German company Siemens had earlier expressed interest in the project, Mr. Prapat said.

All the companies have asked MRTA to provide information on any privileges and tax concessions that the Thai government may offer as an investment incentive.

Senior MRTA officials will confer with the Board of Investment (BoI), government ministries and agencies on the proposed investment, he said.

The construction of the assembly plant will need the experience of foreign firms and involve local companies, like Cherdchai Tour, Mr. Prapat said.

The planned assembly plant, which will also manufacture spare parts, would be constructed within the next three years.

Meanwhile, sources in the Industry Ministry told TNA that they were unaware of MRTA’s desire to discuss the projects.

But in principle the BoI would encourage investment from overseas. Under its regulations, the BoI would imported equipment for the project from excise duties for eight years.

--TNA 2005-06-12