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Tue, August 22, 2006 : Last updated 21:10 pm (Thai local time)



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Home > Business > New rail lines : Construction put forward





New rail lines : Construction put forward

Japanese bank agrees to speed up loans: MRTA

The construction schedule for two new Bangkok rail lines has been pushed forward by six months on the likelihood the Japan Bank for International Cooperation (JBIC) will expedite cheap loans to fund them.

The Blue and Purple rail lines are under the responsibility of Mass Rapid Transit Authority of Thailand (MRTA).

A 13km section of the Blue line from Bang Sue to Tha Phra and a 23km section of the Purple Line, from Bang Sue to Bang Yai, will be the first sections to go up for bidding.

Yiemchai Chatkeo, deputy governor of the MRTA for engineering and planning, told staff yesterday the agency hoped to kickstart construction of the two lines next June, six months ahead of the original schedule.

"Now it's clear that JBIC, which is potentially a big financier, will speed up the loan approval process," Yiemchai said.

JBIC normally takes three months to get approval from the Japanese government, but Yiemchai said that the Japanese bank would complete the process for the two lines in two months.

"While we're waiting for the approval, we cannot proceed with the bidding. But on September 1, we will make available the terms of reference [ToR] for interested bidders. But the official ToR, which are to be approved by the JBIC, will be available between Oct 13 and Oct 30," he said.

Former MRTA governor Prapat Chongsanguan said last week that the terms of reference would be free, but Yiemchai told agency staff that terms for the Purple Line would cost Bt3.5 million, and Bt4.5 million for the Blue Line.

Transport Minister Pongsak Rukta-pongpisal said yesterday the MRTA would open separate bids for the civil work and the operating system in order to attract more bidders and lower the price.

"The caretaker government will not intervene in the bid results, to avoid criticism. We are just preparing everything so the new government can proceed with the investment right away," Pongsak said.

Yiemchai also said the overall investment package for the two lines would be Bt121.6 billion. Of that, Bt14 billion would be for land expropriation; Bt1.55 billion to hire a project management consultant; Bt2.58 billion for a construction supervisor consultant. Bt65.76 billion would be for civil works and Bt37.38 billion for train carriages and an operating system.

The MRTA plans to pay for 30 per cent of the project with budgeted funds, with the rest through loans from the JBIC and local financial institutions.

"If everything goes as planned, the Purple Line will start operating in late 2010 or early 2011. The Blue Line will open in 2012. Once they are operational, they should carry about 720,000 commuters per day," Yiemchai said.

Watcharapong Thongrung

The Nation








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