Green Line Operator Urges BMA to Settle THB34 Billion Debt

 

BTS Group is hoping that Bangkok Governor Chatchart Sittipunt will propose a plan to the Bangkok Metropolitan Administration (BMA) Council in September to use the city's accumulated reserve funds to clear more than 34 billion baht in outstanding operations and maintenance (O&M) debt for the Green Line Skytrain.

 

The company has outlined a plan to use the funds to clear its own debts and boost business liquidity.

 

Surapong Laoha-Unya, CEO of Bangkok Mass Transit System Public Company Limited (BTSC), the operator of the Green Line, stated that the company is still awaiting payment of the approximately 34 billion baht in outstanding O&M fees for Green Line extensions 1 and 2.

 

He added that if the BMA settles this debt, BTSC plans to use the funds to pay off its own debts and increase business liquidity, with the planning department currently reviewing other potential investments.

 

The outstanding O&M debt is divided into three portions:

The second portion of the debt, covering O&M fees from June 2021 to October 2022, totals 12.61 billion baht, comprising 10.13 billion baht in principal and 2.48 billion baht in interest.

The third portion, for the period from November 2021 to December 2024, totals 17.60 billion baht, with 15.76 billion baht in principal and 1.83 billion baht in interest.

The final portion, from 1 January to May 2025, totals 3.70 billion baht, consisting of 3.65 billion baht in principal and 46.78 million baht in interest.

 

 

BMA source revealed that the city is preparing a proposal for the BMA Council to use its reserve funds to pay the outstanding O&M fees to BTSC.

 

The proposal is expected to be submitted in September for consideration and approval, allowing it to be included in the fiscal year 2025 budget.

 

Under BMA procedures, once the Council approves the plan, the Governor will have the authority to publish a royal gazette announcement to use the funds, with a 30-day window from the date of approval.

 

The BMA would then be able to start spending the money immediately and is expected to settle the remaining O&M debt with BTSC by October or November 2025.

 

The rationale for the BMA's push to use its reserve funds is to avoid the daily interest burden of 5.4 million baht, freeing up capital for other city development projects.

 

The dispute over the unpaid O&M debt is consistent with a previous case where the Supreme Administrative Court ruled that the BMA must pay. Waiting for the case to conclude could force the BMA to bear an even higher annual interest rate of approximately 8%.

 

 

 

The BMA currently has about 80-90 billion baht in reserve funds, which is more than enough to pay the debt. The city is confident it can manage monthly O&M payments moving forward, as the Green Line Extension 1 alone generates significant revenue.

 

The delay in paying for the Green Line project since 2019 has already cost the BMA more than 12 billion baht in interest.

 

This includes interest on the E&M (electrical and mechanical) system installation debt (4.23 billion baht) and various O&M interest payments, including 3.50 billion baht for the period from May 2019 to May 2021 and 2.49 billion baht for June 2021 to October 2022.

 

The BMA has already paid BTSC approximately 37 billion baht. This includes a 23 billion baht payment for the E&M system for Extension 2, which was settled using the 2024 supplemental budget, transferring ownership of the system to the BMA.

 

Additionally, the BMA paid the first portion of the O&M debt—totalling 14.48 billion baht—to the Legal Execution Department of the Administrative Court in December 2024, following a Supreme Administrative Court judgement.