BTS Group Holdings Plc, the operator of Bangkok’s Skytrain, has claimed that its borrowing plans to invest in new train cars will fall through if they lose the contract with the Bangkok Metropolitan Administration (BMA) to run the Skytrain until 2042.
BTS is committed to investing in 100 new carriages over the next 30 years to service both the original network and the Bangkok Mass Transit System.
Keeree Kanjanapas, chairman of BTS Group Holdings Plc believes the contract allows a single operator to manage both lines more efficiently and BTS can manage investment for additional fleets more effectively.
“If we have to convince private companies to invest in a new carriage, which is generally worth THB200-300 million a unit, a one-year contract doesn’t make commercial sense. You need the long-term contract for the sake of cost benefits,” he told The Bangkok Post.
The Pheu Thai Party has asked the Department of Special Investigation to look into the THB188 contract and claim the city “lost” THB6.47 billion “for nothing” according to The Nation. This sweeping allegation is how much MP Yutthapong Jarassathien believes would be paid as compensation to the BTSC for the income lost over Skytrain extensions.
Pheu Thai Party spokesman Prompong Nopparit intends to complain to the Office of the National Anti-Corruption Commission, the House Committee on Corruption Prevention and Suppression and the Interior Ministry about the legitimacy of the deal. It was not clear if he also intended to complain to his mum.
Deputy Bangkok Governor Theerachon Manomaipiboon intends to fight for his side and claims the BMA was authorised by law to make the decision without having to seek permission from the Interior Ministry. He also said a recent study found this 30-year contract actually saved the city up to THB6 billion in transport costs compared to the existing 17-year contract.
