Published on October 18, 2005

The Transport Ministry is to call for bids early next year for the construction of four electric rail routes, worth Bt130 billion, with foreign investors from France, Germany, China and Russia expected to take part in the bidding.

Transport Minister Pongsak Ruktapongpisal said yesterday that Alstom of France, Siemens of Germany, China’s Citic Group and a company from Russia have already confirmed their interest in the projects.

“The bidding terms of reference for each route will be designed for free competition in terms of construction techniques, costs, funding and timeframe,” he said. “But cost and the construction period will be the main criteria, as well as the bidders’ proposals for reducing imported contents.”

He said Prime Minister Thaksin Shinawatra had given approval in principle to investment in seven rail lines and today, the Cabinet will consider proposing a royal decree establishing a new mass transit authority to supervise the entire rail network.

The first four lines to be open for bidding are Dark Red, from Bang Sue to Ayutthaya; Light Red, from Phya Thai to Nakhon Pathom; Purple, from Bang Yai to Bang Sue; and Blue, from Bang Sue to Hua Lamphong and Bang Khae.

At least one of them is expected to commence operations in 2008, Pongsak said, adding that design changes to accommodate knock-down technology will speed up the construction time of all the routes from five years to three years.

The design will also slash the level of investment from the original figure of Bt555 billion to about Bt300 billion, he said, adding the savings could be used to extend the networks to cover peripheral provinces.

The Dark Red line, originally expected to cost Bt41 billion, will now cost Bt22.48 billion. Light Red’s construction cost will fall from Bt29.6 billion to Bt12 billion, and purple from Bt25 billion to Bt12 billion.

“The lower cost will enable the ministry to extend the networks,” the minister said.

Government investment will cover the entire cost of the construction and carriages, so that fares can be fixed at Bt15 per trip, which is low enough to encourage the public to switch from their current transportation modes to the electric train, he said.

However, bidders may need to mobilise loans in the first place. In this case, the government could set up a mass transit development fund to collect fees from operating revenues and repay the loans in this way.

Pongsak said the prime minister would chair the new mass transit authority, and its other board members would be independent.

The authority will be in charge of fund mobilising, fare fixing, and running the mass transit development fund. It will also negotiate with Bangkok Mass Transit System Plc and Bangkok Metro Plc, the current rail operators, to integrate their routes into the network.

“If negotiation with Bangkok Mass Transit System yields a successful result, we can immediately extend the BTS route,” he said.

The particular route, dubbed the Green line, will extend the BTS route from Sathorn to Thon Buri.

Watcharapong Thongrung

The Nation

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