Missed Opportunity: Eastern Orange Line Complete, Yet Unused for 5 Years Due to Delays
The Supreme Administrative Court's dismissal of a lawsuit by Bangkok Mass Transit System Public Company Limited (BTSC) against the Mass Rapid Transit Authority of Thailand (MRTA) has cleared the way for the stalled Orange Line project to move forward.
The MRTA has now adjusted the timeline for the eastern section of the Orange Line (Thailand Cultural Center - Min Buri), which is 100% complete but has remained unused for five years. The 22.5 km section, with 17 stations (10 underground, 7 elevated), is now slated to open in May 2028, with the full 35.9 km line operational by November 2028.
This delay means the public has missed out on using a critical transit line for half a decade. The eastern section's completion in 2023 was stalled due to issues with installing the bus system and procuring trains, as the MRTA had separated this work from the western section's construction.
This inaction has not been without cost. The MRTA has spent approximately 41 million baht per month on maintenance, such as water, electricity, and security, totaling at least 492 million baht per year.
Meanwhile, the western section (Bang Khun Non - Cultural Center), a 13.4 km underground stretch with 11 stations, has been awarded to Bangkok Expressway and Metro Public Company Limited (BEM). This section is expected to take 5-6 years to construct.
Transport Minister Suriya Juangroongruangkit awaits the MRTA's draft contract for the Cabinet's consideration, with a potential signing with the private sector around October 2024.
BEM's Deputy Managing Director, Anawat Suwannarit, affirms their readiness to proceed. They have secured loans and train manufacturer information, aiming to expedite train procurement for the eastern section. While unable to specify an exact timeline, they are confident in their ability to deliver faster than the 3.5-year contractual timeframe, potentially allowing for earlier service.
The Orange Line route will begin at Bang Khun Non, running underground along the existing railway to Siriraj Hospital, then under the Chao Phraya River. It will continue underground along Ratchadamnoen Road, Phetchaburi Road, and Ratchaprarop Road before turning onto Din Daeng Road and Vibhavadi Rangsit Road. It will then transition to an elevated track along Ramkhamhaeng Road, ending at Suwinthawong Station.
While the public's wait continues, there is a silver lining. Should the Pheu Thai Party remain in power when the Orange Line finally opens, fares will not exceed 20 baht, including transfers to other lines.
Suriya Unconcerned about Orange Line Project Going to Cabinet
Source: Daily News
Date: Friday, June 21, 2024, 05:02
Council of State Clears Project to Proceed, Eastern Section to Open Soon
Summary:
Deputy Prime Minister and Minister of Transport, Suriya Juangroongruangkit, disclosed that the Mass Rapid Transit Authority of Thailand (MRTA) has submitted the results of the private sector selection and the draft public-private partnership contract for the Orange Line project (Bang Khun Non Min Buri) to the Ministry of Transport. The ministry is reviewing it and expects to propose it to the Cabinet soon. If approved, MRTA can sign the contract and commence the project immediately. The initial plan aims to sign the contract around October 2024 and open the eastern section (Cultural Center Min Buri) by May 2028, with the entire route (Bang Khun Non Min Buri) completed by November 2030.
When asked about the ongoing lawsuit in the Central Criminal Court for Corruption and Misconduct Cases, filed by Bangkok Mass Transit System Public Co., Ltd. (BTSC) against the MRTA Governor and the Section 36 Committee regarding fraudulent amendments and cancellation of the private sector selection, Suriya stated that it should not impact the Cabinet's consideration or the contract signing. He explained that the lawsuit targets individuals, and previously, the Council of State had advised waiting for the Administrative Courts decision before proceeding. Now that the Supreme Administrative Court has ruled, the matter can be re-submitted to the Cabinet for consideration, where all ministers can voice their opinions.
Suriya emphasized the urgency of resolving the legal issues to open the already completed eastern section (Cultural Center Min Buri) to serve the public.
Background:
The second bidding for the project on July 27, 2022, saw two groups submitting proposals:
1. Bangkok Expressway and Metro Public Co., Ltd. (BEM) in partnership with Ch. Karnchang Public Co., Ltd. (CK) with a net present value (NPV) of -78,287.95 million baht.
2. Italian-Thai Development Public Co., Ltd. (ITD) in partnership with Incheon Transit Corporation from South Korea with an NPV of -102,635.66 million baht.
MRTA awarded the contract to BEM as their proposal met the qualifications and offered the best net benefit to the state with an NPV of -78,287.95 million baht.
Source: Daily News, June 21, 2024 Edition
Last edited by Mongwin on 21/06/2024 11:31 am; edited 1 time in total
Countdown to Thai People Using the 'Orange Line' in 2028
Source: Krungthep Turakij
Date: Friday, June 21, 2024, 04:28
When passing through the Ramkhamhaeng area, one can see the fully completed but deserted Orange Line and its stations, a part of the Bang Khun Non - Min Buri (Suwinthawong) route.
Following the Supreme Administrative Court's ruling, which upheld the lower court's decision to dismiss the dispute over the Orange Line bidding criteria, the legal conflicts have been resolved, allowing the Orange Line project to proceed with the bidding process and contract signing with the selected bidder.
Deputy Prime Minister and Minister of Transport, Suriya Juangroongruangkit, provided an update on the progress of the Orange Line project, stating that the Mass Rapid Transit Authority of Thailand (MRTA) has submitted the draft joint investment contract for the project to the Ministry of Transport for review. The Permanent Secretary for Transport is currently examining the details, and the process should take no more than 30 days before being submitted to the Cabinet for approval to sign the contract with the winning bidder. This process is expected to be swift as the draft contract has already been reviewed by the Office of the Attorney General.
"The Ministry's role is to approve or disapprove the bidding results. Since the Supreme Administrative Court has validated the bidding process, there is no reason to disapprove the results. The final decision now lies with the Cabinet, but I am confident that there will be no issues as the previous problems were due to waiting for the court's ruling, which is now resolved," Suriya said.
Regarding the ongoing legal disputes in the Central Criminal Court for Corruption and Misconduct Cases related to the first bidding process, Suriya explained that MRTA had already canceled that initial bidding. These cases involve personal lawsuits and are not related to the second bidding process, which has determined the winning bidder.
Suriya also mentioned that the Department of Special Investigation (DSI) had requested the Ministry of Transport and MRTA to review the selection process for the Orange Line project due to potential legal irregularities, especially concerning the qualification verification of bidders. The investigation documents have been forwarded to the National Anti-Corruption Commission (NACC) for further examination. However, Suriya believes this will not impact the contract signing.
"It is normal for agencies with issues to seek DSI and NACC investigations. The investigations follow due process, and relevant agencies should have clear explanations. With the Supreme Administrative Court's decision, the project can proceed to the Cabinet for consideration," Suriya added.
The Ministry of Transport's primary concern is not the ongoing disputes but the need to expedite the project's service to the public. Despite substantial investment and completion of civil works for the eastern section (Cultural Center Min Buri), service has been delayed due to legal issues. With the court ruling now settled, the project should move forward quickly.
According to MRTA, once the Cabinet approves the contract, it aims to sign it by October 2024 and open the eastern section (Cultural Center Min Buri) by May 2028. The entire route (Bang Khun Non Min Buri) is expected to be operational by November 2030.
The winning bidder for the Orange Line project will be responsible for constructing the western section (Bang Khun Non Cultural Center) and operating the entire line. The project, with an investment of over 140 billion baht, saw its second bidding on July 27, 2022, with BEM (Bangkok Expressway and Metro Public Co., Ltd.) in partnership with Ch. Karnchang Public Co., Ltd. (CK) winning by offering the best net present value (NPV) of -78,287.95 million baht.
BEM has expressed readiness to sign the joint investment contract, emphasizing the expertise of its partners in constructing underground railways. They are confident that the eastern section can be operational within three and a half years after signing the contract, and the western section within six years. They plan to expedite the installation of the railway systems and procurement of train sets to begin service in the eastern section (Cultural Center Min Buri) as soon as possible.
Various Issues with the Orange Line: Completed but Not Yet Operational | THANDIGITAL | June 23, 2024
The Orange Line is completed, so why hasnt it opened for service yet? Uncover the myriad problems plaguing the Orange Line, including damages amounting to hundreds of billions of baht. Who is responsible?
The Epic Saga of the 'Orange Line' Dispute: Who Bears the Cost of the 130 Billion Baht Opportunity Loss?
Source: Thai Post Website
Saturday, June 29, 2024 12:41
After the Supreme Administrative Court dismissed the dispute between the state and private sectors over the Orange Line project, spanning Bang Khun Non to Min Buri (Suwinthawong), many may not realize that this saga has been dragging on for years. This has led to construction delays, increased costs, especially for maintaining completed systems, and an opportunity loss worth billions of baht. Despite this, the Ministry of Transport remains confident that the project will continue, though it remains to be seen how smoothly it will proceed.
Looking back at the timeline of the Orange Line bidding saga, it all began when the Mass Rapid Transit Authority of Thailand (MRTA) issued an invitation for private investment in the Public-Private Partnership (PPP) on July 3, 2020. Midway through, after the MRTA had closed the sale of bidding documents for nearly a month, the technical criteria were revised, leading to private sector lawsuits.
Bangkok Mass Transit System Public Company Limited (BTSC), one of the bidders, argued that the bidding process was non-transparent and favored certain private entities, resulting in damages to the company. This was the first bid and the first case concerning the changes in selection criteria and methods. On March 1, 2023, the Supreme Administrative Court ruled that the first bidding criteria changes were lawful.
The second case emerged after the new criteria adjustments. The MRTA and the Section 36 selection committee agreed to cancel the invitation for joint investment and the private sector selection for the project. The Supreme Administrative Court overturned the lower court's decision, ruling that the MRTA and the Section 36 committee had the authority to cancel the invitation and private sector selection for the Orange Line project legally.
The third case arose during the second bidding round when BTSC filed a lawsuit with the Administrative Court, alleging that the MRTA and the Section 36 committee had obstructed competition, preventing participation in the bidding. The Central Administrative Court has accepted the case, and there have been no further hearings.
While awaiting the final verdict, the MRTA issued a second invitation for private investment in the Orange Line project. On September 16, 2022, the MRTA announced that Bangkok Expressway and Metro Public Company Limited (BEM) had submitted the highest-scoring proposal, but contract signing has been delayed pending court decisions. Recently, on June 12, 2024, the Supreme Administrative Court upheld the lower court's ruling to dismiss this case.
The current hot topic is the consequences of private sector lawsuits, which have delayed the Orange Line project from Bang Khun Non to Min Buri (Suwinthawong). Although the civil works for the eastern section from the Thailand Cultural Center to Min Buri (Suwinthawong) are 100% complete, service cannot commence because the operating contract is tied to the civil works from Bang Khun Non to the Cultural Center, which are still under court consideration.
The MRTA has estimated the damage from the delayed service of the eastern section at 43 billion baht per year due to unused completed construction, maintenance costs of 495 million baht per year, lost fare revenue of 1.764 billion baht per year, and an economic opportunity loss of 40.644 billion baht per year. Initially, the MRTA planned to open the eastern section in March 2023, but delays have extended this to three years, causing an estimated loss of 130 billion baht. Who will bear this responsibility?
Deputy Prime Minister and Minister of Transport, Mr. Suriya Jungrungreangkit, recently revealed that with the Supreme Administrative Court's final ruling, the project should face no further obstacles. The MRTA will propose the selection results and the investment contract draft, which have been reviewed by the Office of the Attorney General, in accordance with the PPP Act 2019. The Ministry of Transport has a 30-day period to complete this process.
The MRTA has already submitted the selection results and the draft investment contract for the Orange Line project (Bang Khun Non to Min Buri) to the Ministry of Transport, which is currently under review. It is expected to be submitted to the Cabinet for consideration soon. If the Cabinet approves, the MRTA can sign the contract with the private sector and start the project immediately. The initial plan is to sign the contract in October 2023 and open the eastern section (Thailand Cultural Center to Min Buri) by May 2028.
Despite ongoing cases in the Central Criminal Court for Corruption and Misconduct against the MRTA Governor and the Section 36 committee regarding document amendments and selection cancellations, Mr. Suriya stated that this should not impact the Cabinet's consideration and contract signing, as it pertains to individual misconduct. Previously, when he was the Minister of Industry, the MRTA had submitted the selection results and draft contract to the Cabinet, but the Council of State advised waiting for the court's decision. Now that the court has ruled, the project can proceed.
The most concerning issue is that the government has invested in the eastern section of the Orange Line from the Thailand Cultural Center to Min Buri, which is 100% complete but cannot be opened due to legal disputes. Therefore, now that the Supreme Administrative Court has made its decision, the project should proceed and open for service as soon as possible to facilitate public transportation, said Mr. Suriya.
Acting MRTA Governor Mr. Witya Phanmongkol stated that the details of the Orange Line project will now be under the authority of the Ministry of Transport, which will submit them to the Cabinet for consideration. Once approved, the eastern section (Thailand Cultural Center to Min Buri), where civil works are complete, can be handed over to the private sector to begin installing signaling systems and procuring trains. The contract allows the private sector 3 years and 6 months to complete this.
For the second project bidding on July 27, 2022, two groups submitted proposals: 1) BEM in partnership with CH. Karnchang Public Company Limited (CK), offering a net present value (NPV) of -78.287 billion baht, and 2) Italian-Thai Development Public Company Limited (ITD) in partnership with Incheon Transit Corporation of South Korea, offering an NPV of -102.636 billion baht.
The MRTA declared BEM the winner, as their proposal met the qualifications and offered the best net benefits to the state (NPV -78.287 billion baht) by balancing the amount the private sector would return to the state against the state support requested by the private sector.
The Orange Line is a large heavy rail mass transit project with a total investment of over 140 billion baht, spanning 39.8 km. It is divided into two parts: the western section from Taling Chan to the Thailand Cultural Center (13.4 km) and the eastern section from the Thailand Cultural Center to Min Buri (22.57 km). The civil works for the eastern section were completed in June 2023, leading to additional monthly maintenance costs averaging 41.26 million baht. Delays cause further damage to the state and deprive the public of service benefits.
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