This December: End of the "Green Line" Debt Saga as Bangkok Makes First Payment of 14 Billion Baht to BTS
Source - Krungthep Turakij Online
Saturday, November 23, 2024 06:47
The long-running debt saga surrounding the operation and maintenance of the "Green Line" electric train, which has accumulated to 40 billion baht, is coming to an end. The Bangkok Metropolitan Council has approved the draft supplementary budget for 2025, paving the way for the first payment of 14 billion baht to be made by December. BTS sees this as a positive sign for the resolution of the remaining debt.
The "Green Line" debt saga has been a major dispute between the state and the private sector, with liabilities exceeding 100 billion baht. It originated in 2016 with the debt for the installation of electrical and mechanical systems (E&M) amounting to approximately 23 billion baht.
This was compounded by the debt for operation and maintenance (O&M) services, reaching 40 billion baht. This debt began accumulating in 2017 when Bangkok Mass Transit System Public Company Limited (BTSC) was contracted to operate the Green Line extensions from Samrong Station to Pu Chao Saming Phrai Station, and further extensions from Pu Chao Saming Phrai Station to Kheha Samut Prakan Station, Mo Chit Station to Ha Yaek Lat Phrao Station, and Ha Yaek Lat Phrao Station to Khu Khot Station.
On April 2, 2024, the Bangkok Metropolitan Administration (BMA) paid BTSC 23.091 billion baht for the installation of electrical and mechanical systems for the extensions. This payment covered On Nut-Bearing, Saphan Taksin-Bang Wa, Bearing-Samut Prakan, and Mo Chit-Khu Khot sections. The funds were sourced from the BMA's special expenditure reserve fund, authorized under Sections 97 and 103 of the Bangkok Metropolitan Administration Act, B.E. 2528.
Currently, the outstanding debt is solely for "operation and maintenance" and totals over 39 billion baht. This is divided into four parts:
1. Debt adjudicated by the Supreme Administrative Court (first lawsuit): The latest calculated amount exceeds 14 billion baht, comprising 11.755 billion baht in principal and over 2 billion baht in interest. This covers operation and maintenance of the extensions from Saphan Taksin to Wongwian Yai-Bang Wa, On Nut-Bearing, and Bearing-Samut Prakan from May 2019 to May 2021.
2. Debt under consideration in the Court of First Instance (second lawsuit): BTSC filed an additional lawsuit on November 22, 2022, for 11.811 billion baht, representing operation and maintenance costs for the Green Line extensions from June 2021 to October 2022. This case is currently under review.
3. Debt not yet filed: This amounts to approximately 13.513 billion baht for operation and maintenance of the Green Line extensions from November 2022 to June 2024.
4. Future contractual payments: This covers operation and maintenance costs for the Green Line extensions until the contract ends in 2085.
On November 22, 2024, Bangkok Governor Chadchart Sittipunt proposed a draft regulation to the Bangkok Metropolitan Council for supplementary budget expenditures for the fiscal year 2025. This is to facilitate the payment of the 14,549,503,800 baht debt for operation and maintenance, as ordered by the Supreme Administrative Court.
The BMA currently has approximately 50 billion baht in reserve funds, sufficient to cover this payment. The payment will be sourced from the BMA's reserve fund and is expected to be made within this year, ahead of the Supreme Administrative Court's deadline of January 21, 2025.
According to a source from BTSC, based on the BMA's procedures, the company expects to receive the payment of approximately 14 billion baht within December. Upon receiving this payment, BTSC plans to allocate a portion to repay maturing debts and enhance its business liquidity.
BTSC hopes that this payment signals a positive step towards settling the remaining debt of over 20 billion baht, including the 11.811 billion baht incurred between June 2021 and October 2022, and the over 13.513 billion baht incurred between November 2022 and June 2024.
## Chadchart Signs 14 Billion Baht Check to Pay Green Line Debt This Week! 30 Billion Baht More for O&M in 2025, BTS Discusses Selling Rail Concession
**Source - Khao Hoon**
**Tuesday, December 24, 2024 05:20**
Bangkok Governor Chadchart Sittipunt will sign a 14.5 billion baht check this week to pay BTS for the Green Line's operation and maintenance (O&M) costs, as ordered by the Supreme Administrative Court. He asserts his readiness to negotiate the remaining 30 billion baht O&M debt soon, before bringing it to the Bangkok Metropolitan Council in January 2025. BTS executives are confident that after receiving this payment, their debt-to-equity ratio will drop below 2. They have scheduled a meeting with Chadchart to discuss the remaining debt. If the price is right, BTS is open to selling the Green, Pink, and Yellow Line concessions to the government to support the 20 baht flat fare policy.
Mr. Surapong Laoha-Unya, Chief Operating Officer of MOVE and President of Bangkok Mass Transit System Public Company Limited (BTSC), a subsidiary of BTS Group Holdings Public Company Limited (BTS), revealed to "Khao Hoon Business" that the Bangkok Metropolitan Administration (BMA) has informed BTSC that they are prepared to pay the outstanding O&M debt for the Green Line this week. The Bangkok Metropolitan Council has approved a lump sum payment of no more than 14,549,503,800 baht from the city's accumulated funds.
"The BMA has informed us that they will pay the debt between December 24-27. They are currently in the process of preparing the check after the Governor signs it. Then, they will submit it to the Legal Execution Department and the judge. After that, BTS will be called to receive the check. The earliest date is December 24," said Mr. Surapong.
BTS will use this payment to settle maturing debts first, with the remainder used as working capital for future debt payments. This payment will reduce the company's debt-to-equity ratio to below 2.
Mr. Surapong added that the remaining 30 billion baht Green Line O&M debt will be negotiated with the BMA soon after receiving the 14.5 billion baht payment.
Regarding Krungthep Thanakom Company Limited (KT)'s appeal of the Supreme Administrative Court's decision not to reconsider the case, where the Attorney General had previously appealed due to the National Anti-Corruption Commission (NACC) indicting 12 individuals involved in the allegedly illegal contract with BTSC to operate the Green Line extensions until 2032, the BMA has not considered this in the current payment.
**Ready to Negotiate Concession Sale**
BTS is ready to negotiate with the government regarding the buyback of the Green, Pink, and Yellow Line concessions if the price is right, in line with the 20 baht flat fare policy. However, even if the concessions are sold, BTS will continue to operate the lines under a service contract, ensuring a steady income stream.
Currently, the main Green Line (Sukhumvit Line: Mo Chit - On Nut, 17 km) and Silom Line (National Stadium - Saphan Taksin, 6.5 km) have about 5 years remaining on their concession, expiring on December 4, 2029. After that, the BMA will switch to a service contract with BTS until 2032. The Yellow Line (Lat Phrao - Samrong) and Pink Line (Khae Rai - Min Buri) still have over 20 years remaining on their concessions.
Previously, Deputy Prime Minister and Minister of Transport, Mr. Suriya Jungrungreangkit, stated that the government is preparing to establish an infrastructure fund to buy back rail concessions from private companies, including the Blue, Pink, Yellow, and Orange Lines, which have more than 20 years remaining on their concessions. The exception is the Green Line, which has only about 5 years left.
Once the government buys back the concessions, it will change the contract model from PPP Net Cost to a service contract (PPP Gross Cost), hiring the same private operators to continue operating the lines until the end of their contracts. Therefore, private companies will not be affected or face any risks from this change.
**30 Billion Baht Debt to be Presented to the Council in January**
Mr. Naphapol Jeerakul, Bangkok Metropolitan Council member for Bangkok Noi district and chairman of the Extraordinary Committee to study the problems of the Green Line project, revealed to "Khao Hoon Business" that he has discussed with Governor Chadchart about the payment of the remaining Green Line O&M debt. It is expected that this matter will be brought to the Bangkok Metropolitan Council's ordinary session in January 2025.
"The Extraordinary Committee has assigned Governor Chadchart to negotiate with BTS to reduce interest rates before finalizing the payment method to reduce the interest burden of 7 million baht per day."
This includes the additional O&M debt that BTSC filed a lawsuit for on November 22, 2022, currently under consideration by the Court of First Instance, amounting to 11.811 billion baht. This covers the Green Line extensions from June 2021 to October 2022.
It also includes the O&M debt for the Green Line extensions from November 2022 to June 2024, approximately 13.513 billion baht, which has not yet been filed with the court.
The Extraordinary Committee also recommended that the BMA use revenue collected from Green Line extension fares to pay off the outstanding debt to BTS monthly, instead of the current practice of delayed or incomplete payments.
Yesterday (December 23, 2024), BTS shares closed at 5.55 baht, down 0.89%, with a trading value of 806 million baht.
Deputy Transport Minister Opens Wutthakat Pier as a Central Hub Connecting Road, Rail, and Water
February 14, 2025
The Marine Department has officially opened Wutthakat Pier, elevating the standards of water transport infrastructure to serve as a central hub integrating public transportationpassenger boats, buses, and electric trainsto meet the continuously growing demand for water-based travel.
On February 14, 2025, Ms. Manaporn Charoensri, Deputy Minister of Transport, presided over the opening ceremony of Wutthakat Pier. The event aimed to enhance the standards of water transport infrastructure and services during the transition to a public transport system that seamlessly connects road, rail, and water. This initiative aligns with the policy of Prime Minister Ms. Paetongtarn Shinawatra and Minister of Transport Mr. Suriya Juangroongruangkit, who are focused on developing piers nationwide to fit the urban context and the fast-paced lifestyle of Bangkok residents.
Ms. Manaporn stated that she has entrusted the Marine Department to develop piers into smart passenger boat stations, particularly through projects that expand water transport on the Chao Phraya River and key canals in Bangkok and its surrounding areas. This effort aims to strengthen the countrys infrastructureespecially water transport and related services under the Marine Departmentso they can efficiently support the rapidly rising volume of waterway travel.
Mr. Kritchphet Chaichuay, Director-General of the Marine Department, added that the construction of Wutthakat Pier is part of a larger initiative to build floating pontoons along Bang Khun Thian Canal, connecting to the Dark Green (Silom) BTS Line. The pier will serve as a central hub for more efficient public transportation, meeting the needs of both commuters and tourists. Passengers can conveniently connect between passenger boats, buses, and electric trains, offering greater ease, speed, safety, and cost savings through an effective public transport network.
Currently, there is no standardized pier or pontoon under the Wutthakat BTS Station Bridge along Bang Khun Thian Canal. We believe this project will accommodate passengers wishing to link road, rail, and water travel, thereby reducing both travel time and costs, Mr. Kritchphet said.
The Wutthakat Pier construction site is located beneath the Wutthakat BTS Station Bridge, alongside Bang Khun Thian Canal in Bangkoks Thonburi District. The project consists of building a 2.40 x 3.20 meter landing platform, one floating pontoon measuring 3.00 x 6.00 x 1.20 meters, and a 1.20 x 8.00 meter adjustable bridge, with a total construction budget of 1,750,000 baht. Construction was completed on November 30, 2024, taking 150 days in total. Sky Marine Co., Ltd. carried out the construction, with the final handover accepted by the procurement inspection committee on December 2, 2024.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
Forum FAQ
Search
Usergroups
Profile
Log in to check your private messages
Log in
