Bangkok allocates 14.54 billion baht to settle BTS Skytrain debt
The Bangkok Metropolitan Council (BMC) has sanctioned a substantial budget of 14.54 billion baht for the Bangkok Metropolitan Administration (BMA) to address its debt to Bangkok Mass Transit System Plc (BTSC), the operator of the city’s BTS Skytrain. This decision follows a proposal submitted by Bangkok’s governor, Chadchart Sittipunt, during a BMC meeting.
Chadchart presented a draft ordinance requesting the additional funds for the fiscal year 2025. This budget, sourced from the BMA’s unallocated reserves, is intended to cover the costs associated with the operation and maintenance of the BTS Green Line. The move aligns with a Supreme Administrative Court ruling from July that necessitated this payment.
Currently, the BMA’s financial reserves for the 2025 fiscal year stand at a robust 81.43 billion baht, with 38.3 billion baht remaining uncommitted. Although the approved budget allocation will cover part of the city’s obligations, it highlights a broader issue. Napapol Jirakul, a BMC member representing Bangkok Noi district, underscored the city’s total liabilities, which hover around 40 billion baht and incur daily interest costs of 7 million baht.
“Immediate repayment is crucial.”
Napapol noted that settling the debt promptly could save the city over 100 million baht in interest fees, funds that could be better allocated to development projects across Bangkok.
The council’s decision saw a majority backing, with 37 members voting in favour of Chadchart’s proposal. In parallel, a 24-member ad hoc committee was established to scrutinise the ordinance further. This committee is tasked with conducting a thorough review within 45 days, followed by a 10-day period for any necessary amendments to finalise the draft.
Chadchart assured that the Supreme Administrative Court has already factored in findings from the National Anti-Corruption Commission (NACC) in its considerations. Consequently, no further appeals are deemed necessary. However, requests for detailed information regarding these findings from the NACC were declined, leaving some questions unanswered.
The resolution marks a significant step towards resolving the city’s financial commitments, ensuring the continued smooth operation of Bangkok’s essential mass transit infrastructure, reported Bangkok Post.
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- Kaohoon International reports BTS and Krungthep Thanakom negotiating over 14 billion baht in outstanding O&M payments, suggesting improved financial liquidity for BTS amid potential concession sales and future recovery in stock value. (read more)
Frequently Asked Questions
Here are some common questions asked about this news.
Why is the BMA prioritising the repayment of the BTS Skytrain debt now?
Repayment now could prevent accruing over 100 million baht in interest, freeing funds for city development.
What if the BMA fails to repay the BTS Skytrain debt promptly?
Delayed repayment could lead to increased debt from accruing interest, impacting Bangkok’s budget for other projects.
How does the budget allocation for the BTS debt reflect on Bangkok’s financial management?
It highlights the city’s strategic use of unallocated reserves to manage liabilities and prioritise essential infrastructure.
What role does the Supreme Administrative Court play in the BTS debt issue?
The court’s ruling mandates the repayment, taking into account anti-corruption findings, solidifying its priority.
How might unresolved questions from the NACC findings impact public perception?
Lack of transparency could lead to public skepticism about the decision-making process and financial governance.
