BMA report to 'clear any questions' on BTS deal

WEDNESDAY, MAY 16, 2012
BMA report  to 'clear any questions' on BTS deal

The Bangkok Metropolitan Administration (BMA) is preparing a report to clear any questions about its decision to award a Bt190billion contract to the current operator of Skytrain system, BTSC, without calling for any bidding or consulting with the central

“We will publish about 100,000 copies before the end of this month,” Deputy Bangkok Governor Thirachon Manomaipiboon said yesterday.
BMA has awarded the 30-year contract via its legal investment arm, Krungthep Thanakhom.
On Tuesday, Pheu Thai MPs filed a complaint with the National Anti-Corruption Commission against Thirachon, Bangkok Governor MR Sukhumbhand Paribatra, KT chairman Praphanpong Vejjajiva and KT president Amorn Kitchawengkul.
Yesterday, the MPs also called on the House committee on anti-corruption to look into the granting of this controversial contract. The committee’s chairman is Pol Lt General Wiroj Pao-in, a Pheu Thai party-list MP.
“We have entered into the contract for the benefit of Bangkok people,” Thirachon insisted yesterday.
He said regulations supporting the contract also came from the Bangkok Council, which is the legislative branch of the BMA.
“Many Pheu Thai members in the Bangkok Council have approved these regulations. What the Pheu Thai MPs have done is show contempt for the Pheu Thai Bangkok councillors,” Thirachon said.
Under the Bt190-billion contract, BTSC will provide the operations and maintenance services for the new three Skytrain extension routes – in which the BMA itself invested – over the next three decades. Their combined length is 12.75kilometres. Under parts of the contract, BSTC will also provide the operations and maintenance services for the original network of Skytrain that has a combined stretch of 23.5kms for 13 years after its 30-year concession to this network expires in 2030.
Pheu Thai MP Jirayu Huangsap, who petitioned the House committee on anti-corruption yesterday, said he felt obliged to keep the BMA works in check the way an opposition party would keep the government in check.
Sukhumbhand, who has led the BMA, is a prominent member of the Democrat Party while the Pheu Thai Party leads the central government.
“How can BMA know that BTSC, in the next 17 years, is still the best company to provide the maintenance and operations services for the original network?” he asked.
Another Pheu Thai MP, Yutthapong Charassathien, said the BMA would be in a better position to negotiate for the services from the BTSC when its concession was about to expire.
Under the concession conditions, all BTSC facilities, including its depot, will become the property of BMA.
Yutthapong said the concession could be renewed during the period of three to five years preceding the expiration of the concession. “That means BMA can still wait until that time before it looks for the provider of the Skytrain operations and maintenance services,” he said.
He also questioned why BMA agreed to allocate up to Bt6.47billion for compensating BTSC under the 30-year contract for the services it would give to the three extension routes.
“BTSC has complained the routes are too short to be viable and BMA has agreed to compensate it. But in fact over the next 17 years, these extension routes are going to bring many more passengers to the original network of Skytrain, which can give the profits to BTSC,” Yutthapong said.