Brakes jammed on bus project

After an hour of heated debate, the Cabinet yesterday put the controversial Bt64-billion NGV bus deal on hold by assigning the National Economic and Social Development Board to conduct a comparative study between leasing or purchasing the fleet.

The study must be completed within 30 days.

Government House sources said the Democrats' position was that they would like the Bangkok Mass Transit Authority (BMTA) to buy the 4,000 buses rather than engaging in a leasing deal as proposed by Transport Minister Sophon Saram.

Sophon was apparently upset that the Cabinet jammed the brakes on his pet project. He slammed the Cabinet for being intimated by social and political pressure.

Some 150 senators have threatened to impeach the entire Cabinet and vote down the 2010 Budget Bill if the bus-leasing deal is approved.

Newin Chidchob, the de facto leader of the Bhum Jai Thai Party to which Sophon belongs, is peeved at the Cabinet, which has now blocked both the bus-leasing project and the rice sale of the Commerce Ministry.

He convened his party's MPs and told them to retaliate by investigating the Democrats' projects, from the rapid bus service of the Bangkok Metropolitan Administration to the Bt10-per-rai farmland rental project of Deputy Interior Minister Thaworn Senneam.

Prime Minister Abhisit Vejjajiva opened the floor wide for all the Cabinet members to debate the merits of this divisive bus deal. Defence Minister Prawit Wongsuwan offered his opinion by saying the Cabinet should not be too concerned with the social pressure against the deal.

"If the project is transparent and the country will benefit from it, the Cabinet should give it the go-ahead," he said.

The discussion was so intense that one Cabinet member quipped that it sounded like a parliamentary debate.

Some proposed that the BMTA purchase the buses, while others said renting them was better. Yet others would like an equal combination of a purchase and a lease for the bus fleet.

Sophon defended his project by saying that he was ready to show its transparency and answer any questions. He said he sympathised with the prime minister, who |had to answer to society over the project.

Abhisit responded immediately by saying he also sympathised with Sophon. He said he did not have any problem with the Bt64 billion or any amount of money.

"What I am unsure of is how we would tell the public if this project will eliminate the losses of the BMTA or make profits for it," he told his Cabinet.

Sophon had been confident that the NGV bus-leasing deal would sail through the Cabinet. He had scaled down the project from Bt69 billion to Bt64 billion to ease the social pressure. But still, the bus-leasing deal could not get through.

Sophon said after the meeting that he did not mind the Cabinet's decision to let the National Economic and Social Development Board study which method would be better between an outright purchase or a lease. "But if the Cabinet just wants to buy time, I won't give in," he said.

Sophon said he supported a leasing deal but if the NESDB were to conclude that a straight purchase was better, then the Finance Ministry must come up with the budget.

He said the BMTA was now losing Bt16 million a day while the bus procurement is being delayed. Besides, Bangkok commuters would also lose the opportunity to use the quality service from this bus project.

Deputy Prime Minister Suthep Thaugsuban put a brave face on the fateful decision of the Cabinet, which has already spent much time reviewing the bus proposal.

"Don't use the word block or delay, as that would sound too severe. Let's put it this way. The Cabinet would like clear figures as to which method is more worthwhile between a lease or a purchase for the bus fleet," he said.

The Constitution Court also has given the Abhisit government a new lease on life by voting that its executive decree, which authorises the government to borrow Bt400 billion, is not unconstitutional.

If the ruling had gone the other way, the government would have found it difficult to continue hanging on.