The State Railway of Thailand (SRT) is set to present to the board on September 17 to push for the final auction of Plot A at Bang Sue Central Station. If there is no interest from the private sector, they plan to combine the auctions for Plot A and Plot E, with a total value of no less than 40 billion baht, to attract the development of government office buildings.

Mr. Worawut Mala, Deputy Governor of the Asset Management Group at the State Railway of Thailand (SRT) revealed after the meeting of the Bang Sue Smart City Development Committee that this meeting was the first, and most of the agenda focused on discussing the progress of projects related to the Bang Sue Central Station. The SRT reported on the progress of preparing for the commercial area development bidding.

Currently, the SRT is drafting the details for the bidding of Bang Sue Central Station, Plot A, which covers an area of 32 rai and is valued at 10 billion baht. Previously, the bidding was opened but there were no private sector interests, so it has been brought back for public consultation (market sounding) and is preparing for the final bidding round, which will be proposed to the SRT board on September 17 for the sale announcement.

However, due to the lack of interest from the private sector in the bidding for Bang Sue Central Station, Plot A, because the area has railway tracks running through it, making it difficult to develop the commercial space, the SRT will propose to the board to consider a combined approach by seeking approval to study the bidding for Plot A alongside Plot E.

The bidding for Bang Sue Central Station, Plot A, and Plot E will be conducted under the Public-Private Partnership Act of 2019, which allows the SRT to open bidding without needing approval from the Public-Private Partnership Policy Committee or the PPP Committee. This will expedite the process of procuring private sector partners.

According to reports from the SRT, the proposal to the SRT board for consideration to open bidding for the commercial area at Bang Sue Central Station on September 17 will present two approaches: 1. Proceed with the bidding for Plot A under the 2013 PPP Act to ensure compliance with legal requirements, conduct market sounding three times, and open bidding to gauge private sector interest. If there are proposals from the private sector, the project can proceed as originally planned.

2. Propose to study and prepare bidding details for both Plot A and Plot E simultaneously, following the 2019 PPP Act to facilitate a faster bidding process. The SRT estimates that this approach will receive significant interest from private sector partners, as Plot E is a high-potential area covering over 79 rai, valued at no less than 30 billion baht, adjacent to Bang Sue Central Station, supporting mixed-use development.

“If we combine the bidding contracts for both Plot A and Plot E, the total value will be no less than 40 billion baht. The larger area has greater potential, and we believe the private sector will respond positively, especially for Plot E. The SRT anticipates a strong response from government agencies to develop numerous office spaces. The suitable model will be similar to a government complex that integrates community spaces with government offices, while Plot A will become the office of the railway authority.”

Reports also indicate that the progress of the Smart City project is currently in the phase of preparing the area and public utilities to accommodate transportation. The transportation systems and networks will be developed after signing a cooperation agreement between the Ministry of Transport and the Japanese government to jointly study plans and assess passenger travel demands, with initial studies expected to begin by the end of this year.

SOURCE: www.bangkokbiznews.com