CNG Bus Project Might Get Green Light By Thai Govt On Tuesday

[webfact]

CNG bus project might get green light on Tuesday

By Piyanart Srivalo

Abhisit 'under pressure' to give nod after ministry modified its plan

The Transport Ministry's controversial CNG (compressed natural gas) bus-leasing project costing Bt64 billion is set for final Cabinet approval next Tuesday, according to Government House sources.

Transport Minister Sophon Saram, a key figure of the Bhum Jai Thai party, a member of the Abhisit coalition government, is pressing hard for the Cabinet green light.

The project was approved by Cabinet in principle last September but was sharply criticised for lacking transparency.

Sources said the ruling Democrat Party of Prime Minister Abhisit Vejjajiva was now under pressure to let the project go ahead after it was amended by the Transport Ministry as required by the September 29 Cabinet resolution.

Sophon, who is close to Newin Chidchob, the powerful figure behind Bhum Jai Thai, is also reportedly upset by recent developments in which his jurisdiction was hurt.

For example, Sophon was not informed in advance when Thai Airways International, the national flag carrier under the Transport Ministry's jurisdiction, decided to enter a memorandum of understanding to form a budget airline with Singapore's Tiger Airways.

In addition, the transport minister was bypassed when the government recently reached a preliminary agreement with Chinese authorities to study the development of cross-border regional railway transport.

As a result, the Bhum Jai Thai party now wants the Democrats to give the green light to its own pet project, which originally would have cost nearly Bt100 billion for Bangkok Metropolitan Transit Authority (BMTA) to lease a total of 6,000 new buses for the city's service over a 10-year period.

Later on, the scheme was revised and the number of buses powered by natural gas was reduced to 4,000.

Last September 29, Cabinet granted approval in principle on condition that the Transport Ministry addressed a number of issues before implementing the scheme.

These issues include laid-off personnel at BMTA as a result of the use of the electronic ticketing system, preparation of natural-gas supply and refilling stations, and construction of new depots.

Originally, the Transport Ministry sought an additional budget of Bt6.14 billion to cover expenses on the early retirement of more than 7,000 terminated staff.

The ministry also asked for another Bt5.92 billion for construction of bus depots, gas refilling stations and other infrastructure.

Earlier, Sophon revised downwards the 10-year leasing cost twice from Bt67.99 billion to Bt64.85 billion.

In addition, the minister split the project into two 10-year lease contracts, covering 2,000 buses each, to suit domestic bus-production capacity.

He also reduced the early-retirement cost to only Bt2.53 billion from Bt6.14 billion, while the construction cost for depots and refilling stations was reduced to just Bt1 billion from Bt5.92 billion.

Currently, BMTA has about 16,036 employees, but the new city bus service using e-ticketing CNG buses will require only 9,974 workers. As a result, there would be 6,062 redundant staff.

According to the Transport Ministry, 2,708 employees are willing to join the early-retirement scheme, while another 1,990 employees will be needed for the operation of 800 free public buses, as the government wants to provide the service on a long-term basis.

In addition, the city bus service revamp, which covers 155 routes, requires a total of 7,405 public buses, so more vehicles will be needed.

The BMTA plans to allow private operators to run another 1,000-1,200 air-conditioned buses under its concession, so they would need another 2,490-2,988 employees.

Overall, there would be no problem regarding redundant workers as earlier identified by Cabinet.

The Transport Ministry has coordinated preparation of 23 bus depots for the 4,000 CNG buses, including those owned by BMTA and other state agencies, and so the budget for depots has been cut down sharply.

Regarding CNG refilling stations, the ministry estimated the entire fleet would consume about 600 tonnes of natural gas per day.

The fleet will be serviced by three BMTA refilling stations, another three super NGV (natural gas for vehicles) stations and 14 conventional NGV stations.

In the long run, PTT will build NGV stations at all 23 bus depots.

The first batch of buses will be delivered within 23 months of final Cabinet approval, while the rest will be delivered within 31 months.

-- The Nation 2010-08-06

[SamritT]

It may be a environmental clean bus, but it is not a corruption clean government.

[junglist]

It may be a environmental clean bus, but it is not a corruption clean government.

true and to the point. thank you.

[SomTumTiger]

Who cares - get the old chicken buses off the road. If someone gets rich in the process, thats life.

[rubl]

It may be a environmental clean bus, but it is not a corruption clean government.

As usual your remark is similar to just saying 'the sky is blue'.

What you may have meant after reading the OP is that the project has been started under PM Thaksin, dropped by PM Surayut, restarted under the late K. Samak (the firetruck guy), dropped again, pushed by K. Newin's man, etc. The price for this all has dropped also. The only aspect people seem to agree on is that new busses are needed.

[asiawatcher]

It may be a environmental clean bus, but it is not a corruption clean government.

You can say that again... You can bet at an acquisition cost estimated to be 1.6M Baht per bus there is some payback to Newin or someone else on the inside. TiT.