Home » News » Benefits of 23 Billion Baht Debt Relief for BTS Explained by BMA: Will Fares Be Reduced for Bangkok People?

Benefits of 23 Billion Baht Debt Relief for BTS Explained by BMA: Will Fares Be Reduced for Bangkok People?

BMA explains the advantages of relieving 23 billion baht in debt for BTS, what will Bangkok people gain? As for whether fares will be reduced or not, it depends on the new concession.

Bangkok is in debt for the BTS Skytrain. which is owed for the installation of the extension of the electric train system resulting from the implementation of the Green Line project in 2017, divided into

  • Extension 1 On Nut-Bearing and Saphan Taksin-Bang Wa
  • Extension 2 Bearing-Samut Prakan and Mo Chit-Khu Khot

Bangkok has already paid off this debt of 23 billion baht and has stated the advantages of paying off such debt.

  • Bangkok has the rightful ownership of the Electrical Mechanical (E&M) system. There are no conflicts over ownership with the private sector.
  • Reduce the risk of being sued and the calculation of default interest is the same as operating expenses (O&M).
  • Bangkok has more bargaining power in bus management because it owns the property.
  • Reduce the burden of interest on procurement According to the contract to install the bus system which has an interest rate of approximately 3 million baht per day
  • After paying the debt, will the fare be reduced or not?

    The BMA stated that paying the debt for installation of the bus system has no effect on current fares. Because it is money that has been outstanding since 2017, when the debt is paid in full, BMA will have ownership of the property and will not have to pay default interest again. In the future, if a new concession is required, BMA will have the power to negotiate fare rates with the concessionaire.

    2024-04-07 05:47:00
    #Revealing #advantages #paying #debt #BTS #Bangkok #paid #billion #baht #PPTVHD36

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