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NGV-bus plan 'temporarily' off Cabinet agenda



Transport Minister Sophon Saram yesterday withdrew the Bangkok Mass Transit Authority's Bt67-billion leasing proposal for natural-gas-for-vehicle (NGV) buses from the Cabinet's agenda.

However, Sophon, a key figure in the powerful Newin Chidchob faction, insisted the controversial plan would be returned next week for Cabinet consideration.

"This NGV-bus project is a major undertaking that should be on the Cabinet's agenda. We've decided to withdraw it temporarily but will have it back at the next meeting," he said.

Prime Minister Abhisit Vejjajiva said the Cabinet had not rejected the project but details on maintenance costs were not ready.

According to the proposal, the BMTA would lease 4,000 NGV buses from the private sector, including Chinese suppliers, over a 10-year period.

The controversial scheme was first proposed during the Samak Sundaravej administration, when the overall cost was more than Bt100 billion.

The latest proposal reduces the overall financial outlay to Bt67 billion, based on a leasing fee of Bt4,780 per bus per day and a maintenance charge of Bt7.50 per kilometre.

This is partially thanks to the Transport Ministry reducing interest from 10.25 per cent to 9 per cent, which shaved Bt2 billion off the project cost.

Proponents say the air-conditioned NGV-bus leasing plan will benefit the public because the average fare will be only Bt30 per passenger, cheaper than most privately run buses.

Chairat Sanguansue, director of the Land Transport Department and acting chief of the BMTA, said the proposal was withdrawn because the premier's advisers and some senators had asked the ministry to provide more information backing up the plan.

At present, the BMTA is losing Bt6 billion a year. This project can help reduce the losses, said Chairat.

Meanwhile, Information and Commu-nications Technology Minister Ranongruk Suwanchawee yesterday also withdrew from Cabinet consideration TOT's revised third-generation (3G) business plan, saying the Budget Bureau and the Finance Ministry had yet to submit their opinions on it to the Cabinet.

TOT plans to spend more than Bt20 billion on the nationwide roll-out of its wireless broadband 3G network. The minister wants TOT to seek domestic loans, a change from the previous plan of export credit.

Moreover, the revised plan will see TOT procure the network via the "general me-thod" instead of the "international method".

The international method entails TOT informing all embassies so they can invite interested global network suppliers to join the bidding. That process takes at least two months and could affect TOT's plan to launch its 3G-network leasing service this year.



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