The Ministry of Interior is set to present a joint investment contract and the results of negotiations regarding the green line train concession to the Cabinet today, aiming to extend the BTS concession for another 30 years in exchange for the Bangkok Metropolitan Administration's debt of nearly 100 billion baht, while capping the fare at no more than 65 baht.

According to sources from the committee on public-private partnerships, today (August 13), the Ministry of Interior will propose to the Cabinet to approve the negotiation results and the draft joint investment contract for the green line electric train project, which involves extending the concession for the green line electric train to BTS Group Holdings Public Company Limited for another 30 years in exchange for the Bangkok Metropolitan Administration's debt of over 70 billion baht, along with setting the fare rate at no more than 65 baht.

Previously, this contract received approval from the Economic Ministers' Committee at the end of 2019, which acknowledged the extension of the green line electric train concession as Prime Minister General Prayuth Chan-o-cha sought to bring this matter for consideration. The entire negotiation process has been conducted in accordance with the order of the National Council for Peace and Order (NCPO) No. 3/2019 regarding the implementation of the green line electric train project, and the Attorney General has confirmed that all legal procedures have been followed as reported by the Ministry of Interior and the Bangkok Metropolitan Administration.

The extension of the electric train concession for Bangkok to the Bangkok Mass Transit System Public Company Limited is a legal procedure. The BTS concession covers the routes from Mo Chit to On Nut and from National Stadium to Taksin Bridge, which are sections where the private sector has been granted a 30-year concession to invest and manage the train operations, set to expire in 2029.

Meanwhile, the extensions from On Nut to Bearing and from Taksin Bridge to Bang Wa involve infrastructure investments and the electric train system by the Bangkok Metropolitan Administration, which hires BTS to operate the trains. The extensions from Mo Chit to Ku Kot and from Bearing to Samut Prakan are infrastructure investments by the Mass Rapid Transit Authority of Thailand (MRTA), which will transfer the infrastructure to the Bangkok Metropolitan Administration.

Currently, the Bangkok Metropolitan Administration has a debt burden from investments in the construction of extensions, investment in signaling systems, and the transfer of rail infrastructure from the MRTA totaling 73 billion baht (excluding interest), leading the Bangkok Metropolitan Administration to opt to hire BTS to operate the entire green line electric train system and extend the concessions for Mo Chit to On Nut and National Stadium to Taksin Bridge, which BTS has been granted a 30-year investment concession, expiring in 2029, for another 30 years until 2602, resulting in a total concession period of 60 years for BTS.

As for the initial fare rate, it has been confirmed to be capped at no more than 65 baht for the entire line, a price that the Bangkok Metropolitan Administration has proposed from the beginning as it is affordable for the general public for travel.

SOURCE: www.bangkokbiznews.com