PR war over Skytrain deal heats up

However, administrators say the deal saved the city Bt6 billion in transport costs.

Maha Sarakham MP Yutthapong Jarassathien attacked the deal in a meeting in the Lower House of Parliament. He said a decision by Krungthep Thanakom Co Ltd, the investment arm of the Democrat-led Bangkok Metropolitan Administration (BMA), to award Bangkok Transit System Co (BTSC) a 13-year extension, when BTSC still had 17 years left on its contract, enabled BTSC to monopolise the Skytrain operation. BTSC, a subsidiary of BTS Group Holdings, is the current contractor.

Yutthapong alleged this caused the city to lose Bt6.47 billion for nothing, as the money would be paid as compensation to BTSC for the income lost over Skytrain extensions. 

The money would come from city coffers, so it may violate regulations, because city funds should be used for emergencies such as a disaster or flood, he said. 

 

DEMAND FOR INVESTIGATION

Yutthapong said he would ask the House Committee on Local Administration to probe the contract. 

The BMA hired Krungthep Thanakom (KT) to run the mass transit system and the contract that KT drew up with BTSC let the latter operate and maintain the Skytrain.

Pheu Thai Party spokesman Prompong Nopparit said he would complain to the Office of the National Anti-Corruption Commission today and to the House Committee on Corruption Prevention and Suppression tomorrow. On Thursday he would ask the Interior Ministry to probe the city’s claim that it didn’t need ministry approval to extend the contract.

But Deputy Bangkok Governor Theerachon Manomaipiboon, accompanied by KT executive Amorn Kitchawengkul, told a press conference yesterday that the contract extension was legitimate and the city was ready to clarify any doubts surrounding the move. 

He said the contract extension backed by the Bangkok Council would give the city the power to control the Skytrain and fares, and thus prevent long-term impacts on people. The BMA was authorised by law to make the decision without having to seek permission from the Interior Ministry, he added. 

Amorn said the Bt190 billion budget to hire BTSC to run the Skytrain for 30 years wasn’t set carelessly. KT had Sasin Graduate Institute of Business Administration at Chulalongkorn University and the Asian Development Bank (ADB) estimate expenses, and KT had negotiated to get this price, which was Bt1.8 billion cheaper than the international standard. He said a recent study also found this 30-year contract actually saved the city up to Bt6 billion in transport costs compared to the existing 17-year contract.