The Bangkok Metropolitan Administration (BMA) has committed to settling a debt totaling 11.75 billion baht, which includes interest owed to the Skytrain operator, Bangkok Mass Transit System Plc (BTSC), for the operation of the Green Line. This obligation was mandated by the Supreme Administrative Court on Friday.
Bangkok Deputy Governor Wisanu Subsompon stated that the BMA must pay this amount promptly to avoid incurring additional interest charges, which are estimated to be around 2 million baht per day. The BMA plans to first obtain approval from the Bangkok Metropolitan Council, with the goal of completing the repayment within 140 days, despite the court allowing a maximum period of 180 days.
The Supreme Administrative Court upheld a previous ruling from a lower administrative court, which required the BMA and its business entity, Krungthep Thanakom, to pay overdue debts resulting from BTSC’s operation of the electric train service and maintenance of two Green Line extensions.
The first extension comprises two sections: Saphan Taksin to Bang Wa and On Nut to Bearing. The second extension includes the Mo Chit-Saphan Mai-Khu Khot section and the Bearing-Samut Prakan section. The operational and maintenance costs were incurred from May 2019 to July 2021 and have yet to be settled.
Surapong Laoha-Unya, CEO of BTSC, mentioned that the company plans to use the funds received from the BMA to pay investors redeeming company bonds due this year.
There is also a separate ongoing case where BTSC seeks to recover 10 billion baht for the operation and maintenance of the same two extensions from August 2021 to October 2022. Mr. Surapong expressed confidence in winning this case, which is presently in the Central Administrative Court.
While BTSC expects City Hall to comply with the court’s ruling from Friday, the company is open to discussions in case the BMA and KT require assistance from the central government due to financial constraints.
