Bangkok Proposes Cabinet Approval for 40-Year Extension of BTS Concession with Fare Cap at 65 Baht
On November 29, 2019, Pol. Gen. Aswin Kwanmuang, the Governor of Bangkok, announced during an inspection of the readiness of the Green Line Skytrain that preparations are underway to open a trial operation of the northern extension of the Green Line from the Lat Phrao Intersection to Kasetsart University, covering a total of 4 stations: Phaholyothin 24 (N10), Ratchayothin (N11), Sena Nikhom (N12), and Kasetsart University (N13). The public will be able to ride for free from December 4, 2019, to January 2, 2020.
However, after this period, in the first quarter of 2020 (January-March), a policy has been assigned to continue the trial operation for another 4 stations: the Forestry Department Station, Bang Bua Station, the 11th Infantry Regiment Station, and Wat Phra Si Mahathat Station, before fully opening all stations from Mo Chit to Ku Kot in November-December 2020. On December 4, the Prime Minister, General Prayuth Chan-o-cha, will be invited to officiate the opening at 10:00 AM, before allowing the general public to try the service at 1:00 PM on the same day.
Pol. Gen. Aswin further stated that negotiations to extend the BTS concession are currently being proposed to the Minister of Interior before being forwarded to General Prawit Wongsuwan, Deputy Prime Minister, and then to the Cabinet meeting. The main negotiation conditions include a fare cap of no more than 65 Baht for the entire line, and BTS must assume liabilities of approximately 100 billion Baht. This fare rate will remain unchanged throughout the concession period and will not be adjusted according to the Consumer Price Index (CPI) as it has been in the past.
“Bangkok will not allow the public to be disadvantaged by bearing excessively high fares for the Skytrain, thus we have set a firm cap of 65 Baht. Everyone must have access at an acceptable price,” Pol. Gen. Aswin stated.
A high-level source from Bangkok Mass Transit System Public Company Limited revealed that the draft contract for the extension of the BTS concession will be submitted to the Cabinet within December for approval, before the new fare rate of no more than 65 Baht is implemented on January 3, 2020, which will be the first day after the trial period of the northern Green Line from Lat Phrao Intersection to Kasetsart University ends.
The concession extension will last for 40 years, covering the Green Line operations from Mo Chit to On Nut and from National Stadium to Taksin Bridge, while another contract covers the extension operations from On Nut to Bearing and from Taksin Bridge to Bang Wa. The concession period will officially start in the first year, which is 2030, and will end in 2063, totaling 40 years from now (2019). There are four key conditions for the exchange: 1. The fare for the entire line must not exceed 65 Baht. 2. BTS must bear the assets, liabilities, and interest of the Bearing-Samut Prakan and Mo Chit-Sapan Mai-Ku Kot projects, totaling 100 billion Baht. 3. A one-time entry fee of only 14-15 Baht. 4. BTS will invest in the installation of signaling systems along the Green Line extension. However, discussions regarding government subsidies are still ongoing.
The new fare structure will remain station-based, with fares for the inner Green Line ranging from 16-44 Baht, and the northern-southern extensions from 15-21 Baht. Passengers traveling the entire line from Ku Kot to Samut Prakan will be charged 65 Baht. The resolution of the special committee studying the extension of the expressway and BTS concession contracts in the House of Representatives, which voted against the extension for BTS, has been confirmed by the government to adhere to the original plan of negotiating the concession extension as stipulated by Article 44, thus there will be no withdrawal from negotiations, and a draft contract will be proposed for Cabinet approval next month.
Mr. Surapong Laohakarnya, the CEO of Bangkok Mass Transit System Public Company Limited, stated that the construction progress is nearly 100% complete, and the system is currently undergoing testing and final adjustments. BTS has conducted trial runs without passengers for a month to test the system continuously, and no issues have been found.
The Green Line Skytrain project from Mo Chit to Sapan Mai-Ku Kot is an elevated line throughout its length, covering approximately 19 kilometers and consisting of 16 stations: Lat Phrao Intersection, Phaholyothin 24, Ratchayothin, Sena Nikhom, Kasetsart University, Phaholyothin 59, Sai Yud Station, Sapan Mai Station, Bhumibol Adulyadej Hospital Station, Royal Thai Air Force Museum Station, KPO Intersection Station, and Ku Kot Station.
Currently, the company operates a total of 84 train sets in the system, with an additional 46 sets contracted for purchase from Siemens, of which 22 sets have been fully delivered. From CRRC Changchun Railway Vehicle, 24 sets are contracted, with 10 sets already delivered and the remaining 14 sets expected to be delivered by March 2020, which will result in a total of 98 train sets available for service, enhancing the efficiency of operations across all routes.
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