Give public train deal say

The Interior Ministry’s plan to table a 40-year train concession extension for BTS Group Holdings before the economic cabinet tomorrow is likely to hit snag as a House panel has said it will veto the move. Yutthapong Charasatian, an MP for Maha Sarakham and a former spokesman of the house panel studying the train concession extension, yesterday told local media he was upset with reports that Interior Minister Anupong Paochinda plans to file the matter at a meeting of cabinet ministers responsible for economic affairs.

He said Gen Anupong would be ignoring a recommendation by the panel that the government and the Bangkok Metropolitan Administration (BMA) should wait until the first phase of the Green Line train concession on the Mor Chit-National Stadium-Taksin Bridge route expires in 2029 before opening a bid for the whole system.

The extended route from Taksin to Bang Wa and from Sukhumvit to Bearing stations was invested in by the BMA via its business arm, Krungthep Thanakom, which eventually hired BTS Group Holdings to operate it in a contract that lasts until 2042.

The Prayut government instructed the BMA to take over the third phase of the Green Line from Mor Chit to Ku Kot in Pathum Thani for the northern part that was built by Bangkok Expressway and Metro Plc (BEM) and is due to open next year, with the BMA being required to pay the construction costs of 100 billion baht.

On the eastern side, the line is to stretch from Bearing Station to Pak Nam in Samut Prakan. The take-over is based on the idea of “single operation” that is aimed at ensuring the best service for passengers such as by making their journeys more comfortable.

But the panel has insisted the wait will not affect the service as the BMA has already hired the skytrain operator to operate the second-phase extended route from Taksin Bridge Station across the Chao Phraya River to the west of Bangkok and also to the east from Bearing Station. On the contrary, by waiting until 2029, there would be bidding competition which would enable the state to get the best deal while ensuring fairness and transparency.

The panel threatened to take the case to the National Anti-Corruption Commission (NACC) on the grounds that the 2060 concession extension contract lacks transparency.

The BMA has, however, insisted that the house panel’s recommendations are not legally binding.

Previously, the Bangkok governor boasted that he would be able to negotiate with the skytrain operator for a capped 65-baht fare for the entire line while BTS Group would pay BEM for the Ku Kot route’s construction costs and also invest in the signaling system. It was later reported that the BMA agreed to subsidise the operation at a minimum of one billion baht a year.

The BMA insisted BTS Group is the only capable partner in the investment for the Ku Kot route extension as a huge sum of investment money is involved that other investors would be unable to afford. Such claims raise questions about whether the state would end up being at a disadvantage. The fact is that BTS Group over the past few years has been criticised for keeping train fares high while the BMA and Krungthep Thanakom are not in a position to counter. The city’s train system is known to be among the most expensive, not only in the region but the world.

It’s time the government and the BMA opened a public forum on the train concession, seeking input from academics and settling the matter in a way that ensures maximum benefits to the public.