Cabinet dumps private-auction rule for Blue Line extension

The cabinet decision five years ago dictated that any extension to the Blue Line must be done under a private-auction process. However, the current PPP Committee chaired by Deputy Prime Minister Somkid Jatusripitak was concerned that restricting the tendering to such a process could lead to corruption and drive up the cost of the project unnecessarily.

The MRT Blue Line currently runs from Hua Lamphong to Bang Sue. The 27-kilometre extension will form a loop where the current terminus at Bang Sue is being extended to Tao Poon as part of the Purple Line project. From Tao Poon the line will terminate at Tha Phra and from the current Hua Lamphong terminus the line will run all the way to Lak Song.

The extension is currently divided into five projects with four contractors in the mix.

"Having many private contractors would result in inconvenience for the public if they have to walk from an underground train to go up on top to catch a Skytrain from another company, and it could lead to extra maintenance costs," said Government Spokesman Major-General Sansern Kaewkamnerd. "So the previous Cabinet’s decision must be terminated to allow for the application of the 2013 PPP law."

Meanwhile, the Cabinet has approved construction of an airport in Betong, a border district in Yala province. The budget is set at Bt1.9 billion, Sansern said.

The feasibility study has been completed, the project gained EIA (Environmental Impact Assessment) approval last year and the only thing left to do now is the land acquisition. The government needs to provide compensation to 19 more households to secure the remaining 14 rai (2.24 hectares) needed for the construction of the airport, which is expected to cover 920 rai.

Construction of the runways, terminals and hangars is expected to be complete and the airport fully functional by 2019. It is expected to be able to accommodate small planes that can carry up to 70 passengers.

The Cabinet has also approved tax privileges for the National Savings Fund. NSF members will now be allowed to use their savings with the fund to reduce their personal income tax and enjoy tax exemptions for the profit gained from the investments that the NSF has made via the use of its members’ capital.