BTS Group Holdings has set an investment budget of 30 billion baht for this year, accelerating the bidding for new projects including the Orange Line and the motorway. The company is confident that its funding is sufficient to support future investments while hoping for the government to extend the Green Line concession for another 30 years.

Mr. Surapong Laohakarnjana, Executive Director of BTS Group Holdings Public Company Limited, revealed that the company expects its investment budget for this fiscal year (April 2020 - March 2021) to be around 30 billion baht, primarily for the construction of the Pink Line and Yellow Line projects, which are currently 59% and 53% complete respectively. The projects are expected to be finished and operational by the end of 2021.

This year, the company anticipates bidding for various rail projects, including the western extension of the Green Line from Bang Wa to Taling Chan, covering a distance of 7 kilometers, the Light Rail Transit (LRT) from Bang Na to Suvarnabhumi, spanning 18.3 kilometers, and the first phase of the Gray Line from Watcharapol to Thonglor, covering 16.3 kilometers, which will connect to the main Green Line at Thonglor station, as well as the Pink Line at Wat Phra Si Mahathat station and the Yellow Line at Chalerm Ratch station.

The company is also preparing to continuously bid for new projects, such as the Orange Line from Bang Khun Non to Min Buri (Suwinthawong) valued at approximately 120-130 billion baht, the M8 motorway project (Nakhon Pathom - Cha-am) valued at 79 billion baht, the Gray Line project valued at 30 billion baht, and the LRT project valued at 30 billion baht. In addition to the projects already won, such as the U-Tapao Airport and Aviation City project valued at 40 billion baht, which is expected to begin construction in October 2021, as well as the M6 motorway project set to start construction by the end of this year and the M81 line expected to commence early next year.

Regarding funding sources for investments, the company believes it has sufficient resources to support new project bids, as it currently has cash flow of over 18 billion baht and has requested shareholder approval to increase the bond issuance ceiling by another 30 billion baht. Additionally, the company is interested in participating in bidding for bus projects that the government will open for private operators to lease vehicles and establish systems to complement the electric rail transport and Rabbit card system.

Mr. Kiri Kanjanapas, Chairman of BTS Group Holdings Public Company Limited, stated that the government is considering extending the concession for the Green Line project for another 30 years, from the current remaining concession period of about 8.5 years. If the government approves the extension, it will increase BTS's operational period to 38 years and extend the route to 66.4 kilometers from the original concession of 23.5 kilometers.

As for the impact on the business group, it is acknowledged that there will be some effects, but the situation is beginning to normalize. The company will strive to minimize the impact while continuing to invest and bid for new projects, aiming to position the BTS group as a leader in infrastructure business in the future.

SOURCE : www.bangkokbiznews.com