Bangkok Governor Chadchart Sittipunt said on Wednesday that the Transport Ministry will need to hold discussions with the Bangkok Metropolitan Administration (BMA) and concessionaires regarding the proper compensation for electric railways' fares.
Chadchart expressed concern that the BMA could face lawsuits from private firms after the government enforced its policy of a flat fare of 20 baht for all electric railways in Bangkok and surrounding provinces, starting in September.
The BMA is responsible for the concessions of two lines—the Green and Yellow lines.
A source from the Transport Ministry said the ministry estimated that the government would need to compensate fares on the two lines, amounting to 2.525 billion baht. However, the BMA estimated the compensation at 11.059 billion baht.
The source explained that the Transport Ministry disagreed with the BMA's requested compensation of 11.059 billion baht, as the amount seemed to include other costs related to the ownership transfer of the two lines from the BMA to the ministry.
Chadchart stated that representatives from the ministry must first hold talks with the BMA and the concessionaires, as the Green and Yellow line concessionaires have contracts that include compensation for lost revenue.
Furthermore, Chadchart added that the BMA is running the Green Line extensions at a loss of 6 billion baht per year. As a result, the BMA may need to raise fares on the Green Line extensions, which would affect the fare compensation rate.