Cabinet delays decision on project for 6,000 buses

The Cabinet yesterday decided to delay a decision on Bangkok Mass Transit Authority's lease of 6,000 NGV buses, seen as a bid to defuse an opposition threat to attack the Transport Ministry on the issue during a proposed censure debate.

Despite Deputy Transport Minister Songsak Thongsri's insistence that the deal is urgent or the BMTA could sustain hundreds of billion in debt, Prime Minister Samak Sundaravej moved to put a brake on the project.

"I support the move and appreciate the ministry's genuine interest in solving the BMTA's problems, but it is necessary to step backwards or this could lead to a political attack," a Cabinet source quoted Samak as saying.

He suggested that a lengthy discussion on public services, bus procurement and the bidding process could be tabled. The Cabinet would then reconsider this issue after Parliament approves the fiscal budget for next year.

Both Songsak and Transport Minister Santi Prompat were being targeted by the Democrats in the debate.

After the Cabinet meeting, Songsak reportedly called for an urgent meeting with his team.

The Cabinet also approved to increase the Purple Line investment budget from Bt31 billion to Bt36 billion, due to higher costs for construction materials.

Santi insisted the Cabinet decision was not pressured by an opposition threat.

He defended the project as transparent. He said Samak needed to review the financial terms of the project.

He said it was better to lease the buses as the supplier would take care of maintenance charges.

A source from the ministry said the daily rent of Bt5,100 for the new buses excluded fuel.

The cost is high as it incorporates maintenance, an electronics system, insurance and investment in NGV service stations.

He said some of the jobs could be provided by the BMTA.

"The 10-year lease is too long as most leases last three to five years. Due to the long lease and the inclusion of all services in one contract, that would limit the number of bidders and the BMTA would be at a disadvantage," he said.

He said the introduction of 6,000 new buses would lead to layoffs of 1,000 collectors, as the new buses employ electronic ticketing.

A source from the BMTA's labour union said several issues remained unclear, particularly a plan to handle employees after the rehabilitation. At present, the BMTA has 16,992 workers: 7,069 drivers, 7,241 fare collectors and 2,682 office staff.

Santi said the details remained unclear but primarily some employees would come under an early-retirement scheme.

BMTA managing director Pinetr Puapatanakul backed the plan. Based on a fare of Bt30 per per trip and current passenger numbers, the BMTA should earn Bt9,500 daily per new bus.