Panel prunes number of new NGV buses

Akaphol Sorasuchart, secretary to Deputy Prime Minister Sanan Kachorn-prasart who chaired the screening committee, said after the committee meeting that the electronic ticketing system would reduce the budget for leasing NGV buses by 30 per cent from Bt110 billion to Bt67 billion. If the 4,000 NGV buses were not enough to serve passengers, 1,700 existing buses owned by the Bangkok Mass Transit Authority (BMTA) would be improved to NGV buses, he added.

The screening committee will forward its notice on leasing NGV buses to the Office of the National Economic and Social Development Board (NESDB) to determine the positive and negative points as well as the strengths of each choice before proposing it to the Cabinet on September 2.

The Cabinet has delayed the project several times due to concerns about the transparency of the bidding as well as the high leasing costs. However, the Cabinet set up the screening committee to consider the matter before resubmitting the project for approval.

The BMTA had hoped to win government approval because it has suffered losses of Bt6 billion a year and the NGV-bus project would improve the organisation's financial position. The NGV buses would also contribute profits to the agency, allowing it to repay accumulated debts of about Bt74 billion within 10 years.

Under the project, the buses will encourage passengers to use the BMTA service because the buses are new and the fares are set at only Bt15 a trip, or Bt30 throughout a day.

Meanwhile, the State Railway of Thailand (SRT) plans to propose the increased construction cost of the Red Line subway project for Cabinet consideration on September 2.

SRT governor Yuthana Tapcharoen said that the Uniq-Chunwo joint-venture consortium, which qualified in the bidding, wanted to adjust the construction cost in line with actual costs.

However, the SRT will consider the legal dispute concerning the Red Line bidding, and if it could not adjust the project cost, SRT will have to open the bidding again, a matter that would have to wait for Cabinet approval.

The budget for the Red Line's first phase - 15 kilometres from Taling Chan to Bang Sue sections - was Bt8.7 billion.