Friday, July 03, 2020

BMTA reform plan to clear debt in 7 years

Jun 02. 2020
Saksayam Chidchob, Transport Minister
Saksayam Chidchob, Transport Minister
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By The Nation

The Bangkok Mass Transit Authority (BMTA) has completed the details of its rehabilitation plan, which have been approved by its board, and will present these to the State Enterprise Policy Committee for consideration on June 8, Transport Minister Saksayam Chidchob said yesterday (June 1).

If the committee approves the details, these will be presented to the Cabinet. If the Cabinet, in turn, approves the plan, the EBITDA will become positive in 7 years, by 2027.

The BMTA stands to see debts of more than Bt200 billion by the end of 2020 if it does not undertake reforms.

The restoration plan calls for a private company to procure vehicles for service. The firm will have to obtain air-conditioned vehicles, fuel, staff and parking spaces.

BMTA will also adjust its routes from the original 269 to only 108 to prevent route overlapping. The fare is expected to be Bt30 throughout the day.

According to a study, 2 million passengers use BMTA’s services per day, resulting in an average annual income of Bt60 million each day.

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