Chadchart promises to repay THB12-bn debt to BTSC in 140 days

THURSDAY, AUGUST 01, 2024

BMA to mostly use money from its 90 billion baht budget for fiscal 2025

Bangkok Governor Chadchart Sittipunt said the Bangkok Metropolitan Administration (BMA) would comply with a court ruling and pay its debt of 12 billion baht to the Bangkok Mass Transit System (BTSC) within 140 days.

Chadchart said the BMA and its business arm, Krungthep Thanakom (KT), were required by normal procedure to carefully review the order of the Supreme Administrative Court first.

On July 26, the Supreme Administrative Court gave BMA and KT 180 days to come up with 12 billion baht to cover the operating and maintenance (O&M) costs of the Saphan Taksin-Bang Wa and On Nut-Kheha extensions.

Chadchart promises to repay THB12-bn debt to BTSC in 140 days

Chadchart said the BMA would mostly use money from its 90 billion baht budget for fiscal 2025 to pay the debt and it has earned 2 billion baht from ticket sales that would also be used to pay the debt.

The governor said the BMA did not intend to breach its contract with the BTSC but it had to stop paying for the O&M cost due to a coup order.

The BMA was earlier instructed by the coup order to add the O&M cost for calculating the new contract with the BTSC when it would deliberate the extension of the BTS Skytrain concession, Chadchart said.

However, the Cabinet refused to reaffirm the coup order so the BTSC filed the lawsuit with the Central Administrative Court in 2021, demanding the BMA and KT pay the O&M cost.

Chadchart said the BMA initially thought it had to get approval from the Cabinet first, but on July 26 the Supreme Administrative Court ruled that the BMA could honour the debt without having to wait for approval from the Cabinet.

“I expect the debt payment will be done within 140 days and I’ll try to make sure it’s done before 180 days in line with the court’s order,” Chadchart said.