ministry seeks new blue line deal

The Transport Ministry will ask the Cabinet today to consider loosening the tie-in conditions imposed by the Japanese loan for the Blue Line mass-transit project.

"The step loan will cause the country to lose its advantage as it comes with conditions that we will use contractors and products from Japan, although it has a low interest rate," Transport Minister Sophon Saram said yesterday.

"We want the Cabinet to reconsider and find another source of project loans for the Blue Line," he said after meeting with the Mass Rapid Transit Authority of Thailand (MRTA).

The step loan proposed by the Finance Ministry for the Bt56.9-

billion Blue Line project put the country at a disadvantage, he said.

The loan from the Japan International Cooperation Agency is expected to finance construction on two sections - Bang Sue-Tha Phra and Hua Lumphong-Bang Khae.

The two-step loan requires the country to procure products or services from Japan worth 30 per cent of the loan and give contracts to Japanese construction companies worth not more than 50 per cent of the loan. A Japanese contractor also has to be the leader of the joint venture.

Only two people have applied for the vacant position of MRTA governor, said Soithip Trisuddhi, director-general of the Office of Transport and Traffic Policy and Planning and chairman of the recruitment committee.

If that does not change by today when applications close, the committee may consider extending the period, he said.

An MRTA source said former governor Prapat Chongsanguan was one of the applicants. He has a good chance of returning to the position, which would smooth the agency's work on urban train development projects, the source said.

Prapat resigned to run for Bangkok governor.

Yesterday, Supoj Saplom reportedly resigned as chairman of the MRTA and Thawanrat Onsira as chairman of the State Railway of Thailand to let the new government fill their posts.

Sophon also assigned the MRTA to finalise with Bangkok which agency would handle the construction of the Green Line from Soi Bearing to Samut Prakan.

A Cabinet resolution gave the project to the MRTA but Bangkok proposed to take it. If the issue is settled, the bidding should be started in April.