PM seeks clarity on BTS Skytrain deals

Possible anti-graft action against former Bangkok governor over rail contract extension complicates matters

Prime Minister Srettha Thavisin has asked the Transport Ministry to compile information and clarify issues involving controversial contracts involving the BTS Skytrain system.

The contacts involve the Bangkok Metropolitan Administration (BMA) hiring Bangkok Mass Transit System Co (BTSC) to operate the main BTS Skytrain system and two extensions until 2042.

Mr Srettha said he had yet to study the case in detail and wanted to know more about the issues involved.

The prime minister was responding on Tuesday to questions about reports that an investigative committee would ask the National Anti Corruption Commission (NACC) to determine if there are grounds for action against former Bangkok governor MR Sukhumbhand Paribatra and 12 others involved in granting the lengthy extension to the company.

MR Sukhumbhand and the others have been accused of failing to comply with the public-private partnership law and the law against price collusion, to the benefit of BTSC. The deal they approved in 2012 allowed the company to run the main section of the Skytrain — the 26-kilometre On Nut-Mor Chit and National Stadium-Taksin routes — for another 30 years.

BTSC invested in and operated the original Skytrain network under a 30-year concession that ends in 2029.

The contract extension was approved in 2012 in MR Sukhumbhand’s first term, even though the concession still had 17 years to run.

At the same time, the BMA signed contracts to hire BTSC to operate two Skytrain extension routes, Onnut-Bearing and Taksin-Wong Wian Yai, until 2042.

BTSC would be paid 190 billion baht by City Hall under these contracts.

According to Isara News Centre, an NACC inquiry committee met on Monday and ruled that there are grounds in the allegations against MR Sukhumbhand and the 12 others.

The committee is expected to submit its opinions to the anti-graft body for a decision before commissioner Natthachak Pattamasigh retires later this month.

Concerns have also been raised that any legal action by the NACC could affect the government’s plan to impose a 20-baht flat-rate fare for light rail transit in the capital.

The government has said it should be able to offer 20-baht fares on the lines operated by state agencies, but making it system-wide would require the cooperation of BTSC.

Mr Srettha said a comprehensive study, including legal aspects, is needed before deciding on the capital’s mass transit system fares.

The Transport Ministry would also explain the issue to the public, he added.