BMA gets green light to pay 23.48bn debt to Skytrain operator BTSC

Bangkok Council voted 44:0 with one abstention to approve payment to the BTS Skytrain operator for installing electrical and mechanical systems on second-stage Green Line extensions from Bearing to Kheha and from Mo Chit to Saphan Mai and Khu Khot stations. Five of the councillors representing Bangkok’s 50 districts were absent from the meeting.

The BMA had hired the BTCS to carry out the installations after the city administration took over the extension projects from the government, BMA Governor Chadchart Sittipunt told councillors before the vote.

Chadchart told the meeting that the Cabinet had refused the BMA’s request for government funds to pay the debt and insisted it was the city administration’s responsibility.

The governor told councillors it would be best if the BMA paid the debt quickly to avoid interest charges. If the debt is paid by April 4, the payment plus interest would total 23.488 billion baht, he said.

Once the payment is made, the BMA would have total rights and ownership of the Green Line extensions, making it easier for city hall to protect the interests of passengers who make about 280,000 trips daily on the extensions.

Chadchart said he would now seek Cabinet approval to pay the debt via the interior minister.

Speaking to reporters after Wednesday’s meeting, Chadchart said the council’s approval had effectively ended the impasse on the debt issue.

The payment would be made from BMA reserves worth 51.2 billion baht, he added.

BTSC CEO Surapong Laoha-Unya welcomed the breakthrough.

“We understand the repayment will be a lump sum,” he told The Nation on Thursday, adding that he was optimistic there would be no further complications.

He said any further delays would alter the conditions of the deal and may increase the debt owed.

The company would use the debt payment to repay a loan and boost its liquidity, Surapong said.

After the BMA pays the 23.488 billion debt, the city will still owe 27.54 billion baht to BTSC for train maintenance and operating the extensions.

This second debt is divided into 5.4 billion baht for operating and maintenance costs on extensions from Onnut to Bearing and Saphan Taksin to Wongwian Yai, and 22 billion baht for operations and maintenance on extensions from Mo Chit to Khu Khot and from Bearing to Samut Prakan.