BTS operator dismisses Pheu Thai concerns

BTSC executive chairman and chief executive officer Keeree Kanjanapas yesterday called a news conference to clear up public doubts over why Krungthep Thanakom Co Ltd (KT), the investment arm of the Democrat-led Bangkok Metropolitan Administration (BMA), awarded the contract without calling for a new bid. Pheu Thai members yesterday asked the Department of Special Investigation (DSI) to look into the matter.
“We’ll not suspend the service while waiting for the scrutiny to be completed and we don’t think the contract will be terminated later,” Keeree said.
BTSC is a subsidiary of BTS Group Holdings, a listed company.
On May 3, KT awarded the 30-year operating and maintenance contract for two extended routes (On Nut-Bearing and Taksin-Bang Wa) to BTSC. The company is also contracted to operate the original route, developed by itself, for another 13 years after the original contract expires in 2029. Both contracts will thereby end in 30 years from May 8 this year.
Against criticism that the contracts were signed in a hasty manner, Keeree said they were awarded as a result of two years of negotiation and the process complied with the law and regulations, under guidance from legal experts for both the BMA and BTSC.
Keeree also announced that BTSC would procure additional trains and increase operating staff. Immediately after the signing, the company ordered 35 additional train compartments from Siemens, with the first to be delivered in mid-August.

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The company now operates with 35 train compartments. Five more trains will be ordered from China, each with four compartments, to serve the Wongwian Yai-Bang Wa extension. Seven more trains with 28 compartments will be ordered for the Silom-Sukhumvit route and the two extended routes, which are now complete.
Of the total, BTSC developed the 23.5-kilometre Silom-Sukhumvit route, with 23 stations. BMA, meanwhile, financed the construction of the three extended routes with a combined length of 12.7km. The 5.25km On Nut-Bearing route required an investment of Bt8.9 billion.
The long-term contracts will save operating costs, Keeree said. No investor would dare to invest in new trains and other necessary items if the contracts were renewed every year. On the operation of the extended routes, he said BTSC was in the best position, and this would benefit all passengers.
However, Pheu Thai spokesman Prompong Nopparit, after meeting with DSI director-general Tharit Pengdit, questioned the development.
“We believe it violates the Public-Private Joint Venture Act and the laws governing the bidding for government projects,” he said. “For the next 30 years, BTS will get Bt190 billion from the entire system while the BMA will get just Bt110 billion. Why so?”
Bangkok Governor MR Sukhumbhand Paribatra also said he welcomed investigation, insisting that he procured the deal for the sake of Bangkokians.
“We have entered the contract to end any uncertainty about the service. The BMA will be able to set the fares in the long term. Now, we are able to maintain the minimum fare at Bt15.”
He said the Pheu Thai Party attacked the decision because the government wants to take over the Skytrain from the BMA.
“The BMA and BTSC have built the Skytrain together, but after it is completed, the government wants to take it over. If the government gets what it wants and abuses the system, Bangkok people will suffer.”