BMTA: 3.65 million baht for each of the 489 NGV buses is reasonable

[webfact]

BMTA: 3.65 million baht for each of the 489 NGV buses is reasonable

BANGKOK, 22 Jan 2015, (NNT) - According to the Bangkok Mass Transit Authority (BMTA), the 3.65 million baht price quoted is reasonable for each of the 489 NGV-fueled buses it plans to purchase.

Acting Chairwoman and Director of the BMTA Pranee Sukasorn defended the budget, after an anti-corruption in government agencies watchdog yesterday submitted an open letter to the BMTA board urging it to look into the deal. The group claimed that the price was simply too high, saying that each NGV bus should not cost more than 3 million baht.

Ms. Pranee said her agency had produced a Terms of Reference along with the market price for the vehicle. She said the BMTA had also invited an association of anti-corruption organization to join the meeting when determining the said market price.

The private sector also attended the meeting, making the quoted price acceptable to all sides. The acting BMTA chairwoman remarked that if the project did not get a nod, commuters would be the ones to suffer, being forced to use the service of the obsolete and aging bus fleet currently on the streets of Bangkok.

Ms. Pranee revealed further that the BMTA had compared the prices quoted by 11 different manufacturers. The price was inclusive of the bus, import tax, and value added tax, as well as processing fee.

Reportedly, 16 private companies are interested in the BMA's planned procurement project.


-- NNT 2015-01-22

[scorecard]

The acting BMTA chairwoman remarked that if the project did not get a nod, commuters would be the ones to suffer, being forced to use the service of the obsolete and aging bus fleet currently on the streets of Bangkok.

well yes, but the best possible price at the start (provided it brings quality vehicles and warranties etc.) is also very important ensure the best possible use of tax payers funds / the common wealth of all Thai people..

[PoorSucker]

Related story:

Bangkok's new bus fleet saga: why Scania, Volvo opt out

[webfact]

BMTA defends its NGV bus fleet procurement



BANGKOK: -- The Bangkok Mass Transit Authority (BMTA) yesterday defended its multi-billion baht plan to purchase a fleet of NGV-fueled buses saying the price is reasonable.

The BMTA said the 3.65 million baht price quoted for each of the 489 NGV-fueled buses it plans to purchase in its proposed bid call is rational.

BMTA acting chairwoman and director Ms Pranee Sukasorn defended the proposed budget for the NGV bus fleet came after an anti corruption watchdog in public sector officially inquired the suspected bid plan, particularly the price.

The watchdog claimed the bus price should not exceed 3 million baht, saying the 3.65 million baht median price quoted BMTA is too high.

But Ms Pranee explained that the BMTA had produced a Terms of Reference along with the market price for the vehicle and had also invited an association of anti-corruption organization to join the meeting when determining the said market price.

The private sector also attended the meeting, making the quoted price acceptable to all sides, she said.

She stated that if the project did not get a nod, commuters would be the ones to suffer, being forced to use the service of the obsolete and aging bus fleet currently on the streets of Bangkok.

Ms Pranee affirmed that the BMTA had compared the prices quoted by 11 different manufacturers before determining the median price.

The price was inclusive of the bus, import tax, and value added tax, as well as processing fee, she said.

Reportedly, 16 private companies are interested in the BMA’s planned procurement project.

Source: http://englishnews.thaipbs.or.th/bmta-defends-ngv-bus-fleet-procurement


-- Thai PBS 2015-01-22

[worgeordie]

What is a "processing fee"?

regards Worgeordie

[slapout]

they have quotes from 11 different manufactors of buses, yet 16 companies are interested in bidding on suppling said buses. why would import tax processing fee??, and value added tax even be a part of the of the purchase of these buses. the taxes can certainly be exempt for purchaeses of any government entity, for imported equipment not manufactored in Thailand.

what market price is the dear lady referenceing? how maqny of the 16 private companies actually are manufactors or are they planning on purchasing buses thru an agent (Thai company)?

yes i can see why anyone group concerned with ''where the taxpayer money goes would have many questions on this project, at this point.

[Loles]

3.65 M Baht seems a bit few for me for a NGV Bus.

The Toyota Altis NGV's price almost a Million Baht.

[Just1Voice]

3.65 M Baht seems a bit few for me for a NGV Bus.

The Toyota Altis NGV's price almost a Million Baht.

Yeah, but you have to remember, BMTA isn't going for price & quality, they are (as usual), going for price & backhander kickbacks for their personal bank accounts. It's Thainess on exhibit.

[NongKhaiKid]

What is a "processing fee"?

regards Worgeordie

Err, Umm it's a.., I'll get back to you on that one

[rubl]

Related story:

Bangkok's new bus fleet saga: why Scania, Volvo opt out

That article had

"Phuriwat also said the median prices specified by the BMTA at THB4.5 million for air-conditioned, low-floor bus and THB3.8 million for regular, non-air-conditioned bus"

It would seem the median price for regular, non-air-con bus has dropped already as the current topic has 3.65m Baht?

[scorecard]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

What is a "processing fee"?

regards Worgeordie

And the agents fee? Have to have an agent.

[lvr181]

Transparency? Or was it just warm fuzzy words to cover lack of transparency?

[Basil B]

What % is the import tax?

[Thian]

For a chinese brand bus it is much, for a good Volvo not much.

The skytrain is also a Siemens (perfect quality) so why a chinese brand bus/??? Is there now japanese brand availlable?

[ratcatcher]

Quality- Price- Choice.

http://en.dfyzj.com/

[rubl]

For a chinese brand bus it is much, for a good Volvo not much.

The skytrain is also a Siemens (perfect quality) so why a chinese brand bus/??? Is there now japanese brand availlable?

Doesn't really matter for the topic, but part of the BTS Skytrain rolling stock is Chinese, from Changchun Railway Vehicles Co. Being used from mid-2010. Most important reason to buy was price, I think.

[Ulic]

AS already mentioned, it is very hard to say. It is comparing apples and oranges, Volvo to some mystery Chinese brand.

In regards to taxes that is a flow through to the government. One branch pays another collects so take it out but leaving

it in is probably easier. It gives a clearer picture of the cost. A Lambo at 20 million baht is simply outrageous but people

here buy them.

[BKKdreaming]

the Yellow Air-Co buses they use now are Chinese and falling apart

since there is import duty and VAT I assume the bus company is private,

Hopefully they will buy the best BFB (bus for baht) and not the cheapest......

ill they have wood floors like the old blue buses ?

[mike324]

majority of the public buses on the streets are chinese made, european buses are simply too expensive. Drivers here can't even take care of the bus properly, no need for european buses. You can't find a bus in thailand without a scratch or banged up bumper

[macapie]

Compared to Pickups and sedans they are too cheap at that price, don't you agree ??

[Estrada]

For a chinese brand bus it is much, for a good Volvo not much.

The skytrain is also a Siemens (perfect quality) so why a chinese brand bus/??? Is there now japanese brand availlable?

The BTS sky trains were originally Siemens but now also have Chinese copy which needs more spares and maintenance. You can tell the Chinese trains because the brakes shudder. The Chinese trains are the ones with the pretty lights which show which station you are at.

Edited April 19, 2016 by Estrada

[Estrada]

For a chinese brand bus it is much, for a good Volvo not much.

The skytrain is also a Siemens (perfect quality) so why a chinese brand bus/??? Is there now japanese brand availlable?

Doesn't really matter for the topic, but part of the BTS Skytrain rolling stock is Chinese, from Changchun Railway Vehicles Co. Being used from mid-2010. Most important reason to buy was price, I think.

The most important reason to buy was "incentive".

[greenchair]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

What is a "processing fee"?

regards Worgeordie

And the agents fee? Have to have an agent.

A 65 million per bus processing fee seems reasonable to me.

Must be many hands needed to sign papers.

[Estrada]

The NACC have rejected the biding by the BMA for NGV and Electric buses each time for 'irregularities" as well as the price appearing to be too high at B4.5Million per bus. Only a few months ago the BMA announced it would not be procuring new buses but would be refurbishing its existing fleet. The latest call for bids for NGV buses at B3.6Million each including spares and maintenance is still too high considering that the list price including 40% import duty and VAT is only B2.1Million for the purchase of 10 or more 62 seater city buses similar to the EURO buses it currently operates.

[tuanku]

Chinese made NGV buses are for sale on Alibaba.com. The most expensive quoted price I could find was 3.1 million Baht (90,000 USD) Most of them were cheaper (less than half that price) and that is not the price for a Government agency buying in bulk, so yes these do look like inflated prices - which would be normal. I have read that the informal "corruption tax" was around 30% under the Shinawatra Governments but has risen to around 50% under the military. Difficult to get clear proof obviously but this is from surveys conducted in businesses which provide equipment and services for the Government.