BMA publishes FAQ on its THB23-billion debt repayment to BTSC

In its FAQ on the issue published on the BMA website, the city administration said the benefits include gaining ownership of assets of the Green Line extension and greater bargaining power in negotiations on the route’s operations in the future.

The BMA, on April 2, paid off 23.488 billion baht of the debt it owed to the operator of the BTS Skytrain.

Its FAQ addressed most of the commonly asked public questions:

● Why did the BMA have to pay the money and since when was that amount owed to BTSC?

On April 2, the BMA paid its debt for the installation of the electronic and mechanism (E&M) system for extension of the Green Line. The debt pertained to 2017 for two E&M extension installations:

- First extension from On Nut to Bearing stations, and from Taksin to Bang Wa stations

- Second extension from Bearing to Samut Prakan stations and Morchit to Khu Kot stations.

● What are benefits of the debt payment?

1. The BMA will righteously own the E&M systems of the Green Line with no more disputes with the private firm. Such disputes could have led to more legal disputes and could have blocked development of the services in the future.

2. The BMA would no longer be sued to pay interest on the delayed payment, so the people’s tax revenue would be saved.

3. The BMA will have more bargaining power as it now fully owns assets of the Green Line. It will have more power to negotiate fare rates with the concessionaire and be able to set service standards and better supervise the services.

4. The BMA can save payment of interest for the E&M installations at the rate of 3 million baht per day.

● Will the debt payment result in reduction of fares?

The debt payment on the E&M installation cost will not lead to changes in fares because the debt had accumulated since 2017.