BMA, KT to discuss multi-billion debt case as BTSC hopes for payout

The Central Administrative Court on September 29, 2025 delivered its ruling in a case filed by Bangkok Mass Transit System Plc (BTSC) against the Bangkok Metropolitan Administration (BMA) and Krungthep Thanakom Co Ltd (KT), concerning a breach of the operations and maintenance (O&M) contract for the BTS Skytrain Green Line extension between June 1, 2021 and November 20, 2022.

The court ordered the BMA and KT to pay BTSC approximately 11 billion baht plus interest for operating and maintaining the Green Line extension, in accordance with their contractual obligations. The sum must be paid within 180 days from the date the case reaches final judgment.

A source from the BMA said that following the ruling, the city administration would need to consult with its executives on whether to appeal to the Supreme Administrative Court, since the case remains under the jurisdiction of the Central Administrative Court.

“If the BMA files an appeal, the debt will continue to accrue interest. A meeting between BMA executives and KT has been scheduled for September 30 to decide on the next step,” the source said.

The issue of paying for O&M services has been under discussion for some time. One option put forward to the Bangkok Metropolitan Council is to use the BMA’s accumulated funds to settle the debt. Officials argue that clearing the debt promptly would ease the burden on the city, which currently pays around 5.4 million baht in daily interest. Redirecting these funds to development projects would yield greater public benefit.

The current dispute mirrors an earlier case, in which the Supreme Administrative Court ordered the BMA to pay BTSC for outstanding O&M expenses. If the BMA waits for this case to conclude,which could take years, the city will continue to shoulder the interest burden at a rate of MLR+1% per year, or 8%.

“Initially, the BMA is preparing to comply with the court order and pay the 11 billion baht owed, as appealing the case may be difficult. The nature of this dispute is essentially the same as the previous case, where the Supreme Administrative Court already ruled in favour of the private operator,” the source added.

A source added that if the joint meeting between the BMA and KT reaches a conclusion, the BMA will need to submit the matter to the Bangkok Metropolitan Council for approval to use its accumulated funds to settle the debt with the private operator. The plan would involve making a one-off payment in full in order to reduce the interest burden. It is expected that the proposal could be tabled before the Council by November, with repayment to the company to follow soon after.

In line with established procedure, once the Council approves the use of accumulated funds, it falls within the authority of the Bangkok governor to issue an order authorising the payment. The governor has 30 days from the date of Council approval to issue such an order.

Currently, the BMA holds accumulated funds totalling around 80–90 billion baht, sufficient to cover the outstanding debt to BTSC. This would also ease the city’s financial burden by eliminating interest payments. Looking ahead, the BMA is confident that it can handle future monthly O&M payments, as the first extension of the Green Line alone generates substantial revenue from passenger fares.

BTSC awaits BMA’s decision on possible appeal

A source at BTSC said that following the Central Administrative Court’s ruling, the company was now waiting to see whether the BMA would comply with the judgment or file an appeal to the Supreme Administrative Court.

If the BMA agrees to make the payment, BTSC would receive around 11 billion baht, excluding interest. The company plans to use the funds to repay debts coming due and to strengthen its liquidity position.

Currently, the BMA still owes more than 20 billion baht in unpaid O&M costs for the Green Line, which BTSC has not yet pursued through legal action as negotiations over repayment are ongoing.

“At present, there is only one active case in dispute, the 11-billion-baht O&M contract that the Central Administrative Court has already ruled on. If the BMA does not appeal, the matter will be settled. As for the remaining 20 billion baht, the BMA appears to be waiting to see how this case is resolved before deciding whether to pay the outstanding amount,” the source said.

Court affirms contract legality

BTSC had filed two lawsuits against the BMA and KT. The first case concerned O&M costs for Green Line Extension 1 from May 2019 to May 2021, and Extension 2 from April 2017 to May 2021, totalling 14.476 billion baht. The Administrative Court ruled that the contract was legally valid.

This case has now concluded, with the BMA paying the Office of Legal Execution under the Administrative Court on December 26, 2024, in line with the Supreme Administrative Court’s final ruling delivered on July 26, 2024.

Two further debts remain unpaid, totalling over 20 billion baht

At present, the BMA still owes more than 34 billion baht in O&M fees for the Green Line extensions, divided into three outstanding debts:

Second debt: O&M costs for Extensions 1 and 2 between June 1, 2021 and November 20, 2022, totalling 11.811 billion baht. The Central Administrative Court ruled on September 29, 2025, that the BMA must pay this sum within 180 days once the case reaches final judgment.

Third debt: O&M costs for Extensions 1 and 2 between November 2022 and December 2024, amounting to 17.596 billion baht (15.762 billion in principal and 1.833 billion in interest). No lawsuit has yet been filed.

Fourth debt: O&M costs for Extensions 1 and 2 between January and May 2025, amounting to 3.697 billion baht (3.650 billion in principal and 46.78 million in interest). This has also not yet been filed in court.