Onus on next government to decide on BMA’s massive debt to BTSC
The nearly 50-billion-baht accumulated debt owed by the Bangkok Metropolitan Administration (BMA) to the Bangkok Transit System Corporation (BTSC) is expected to be a hot potato for the next government.
BMA Governor Chadchart Sittipunt said earlier that the next government should shoulder much of the debt instead of leaving the entire burden to the city administration.
The debt has now grown to nearly 50 billion baht.
Chadchart said it would not be easy to tackle the massive debt owed to the BTSC and added that the BMA would consult the next government on how to tackle it.
The debt to the BTSC stemmed from the BMA hiring the transport company to operate the extended routes of the Green Line railway and from the construction of the extended railway.
The BMA hired the BTSC to run electric trains and install systems for the Green Line extension from Mo Chit to Khu Kho and from Bearing to Samut Prakan.
In September 2021, the BTSC filed a lawsuit against the BMA, suing it for 12 billion baht it is owed as train operation fee and another 20 billion baht for installing the train operating system. The BMA missed the April 2021 payment deadline. The prinicipal debt amount plus interest have now accumulated to 49.8 billion baht.
Chadchart said the Finance Ministry should shoulder the cost of construction of the extended routes.
Chadchart said the BMA would consult the next government on whether it should run the entire Green Line on its own after the concession contract expires in 2029 or hold a bidding for a new concessionaire.
Earlier, Surachet Praweenwongwutthi, deputy leader of the Move Forward Party, said the Move Forward-led coalition government would hold talks with the BTSC on how to deal with the Green Line operation after the contract expires in 2029. Move Forward emerged as the party with the most seats after the general election on May 14, and is in the process of forming a coalition government.
Surachet said Move Forward has a policy to incorporate bus and electric train fares into one system, capped at 45 per day with unlimited trips.
If the policy is implemented, the government would compensate the private operators for loss of income, he added.
Surachet agreed with the BMA that the central government should shoulder the construction cost of the extended routes.
Surapong Laoha-Unya, chief operating officer of the BTSC, had said earlier that he hopes the new government would speed up the repayment of debt the BMA owed the BTSC.
