Bangkok requests extension to settle BTS Skytrain debt
Bangkok Governor Chadchart Sittipunt announced yesterday that the city will require additional time to address its substantial debt owed to Bangkok Mass Transit System Plc (BTSC), the operator of the BTS Skytrain.
The debt, amounting to billions of baht, was accumulated through hiring BTSC to manage the electric train service on two extended sections of the BTS, known as the Green Line.
Last week, the Supreme Administrative Court upheld a previous ruling that mandated the Bangkok Metropolitan Administration (BMA) and its business arm, Krungthep Thanakom, to settle the overdue debts for BTSC’s operation and maintenance of the electric train service on the extended routes.
Following the court’s decision, BTSC hinted at a willingness to negotiate. The company suggested it might consider swapping the debts for an extension of the Green Line’s operational concession.
Chadchart stated that the BMA owes BTSC approximately 40 billion baht in accumulated costs related to the operation and maintenance of the BTS. Additionally, the BMA is required to pay BTSC around 6 billion baht annually, covering the shortfall between the cost of hiring BTSC and the ticketing revenue generated.
“The BMA receives 90 billion baht in its annual budget each year, and adding the 6-billion-baht expenses together with the 40-billion-baht accumulated debts is quite a burden on the BMA. The BMA will have to find a way out of this long-term budgetary burden. And whether the proposed extension of the BTS’ concession, due to end in 2029, will be an ideal solution or not is something we still have to ponder.”
The 58 year old Bangkok chief noted that this financial strain necessitates finding a viable long-term solution. Whether extending the BTS concession, which is set to expire in 2029, will be the ideal resolution is still under consideration, reported Bangkok Post.
In related news, Korean Air launched its first Boeing 787-10 on the Seoul Incheon to Bangkok route, featuring luxurious amenities including Prestige Suites 2.0 in business class and enhanced comfort in economy, marking a significant expansion in their fleet services.
