Govt denies that negotiations over missing rail link have concluded

Govt denies that negotiations over missing rail link have concluded

The government has confirmed that negotiations with Bangkok Expressway and Metro Plc (BEM), the operator of the Blue Line electric rail service, in regards to the operation of the missing link between the Blue and Purple Lines have not yet reached a final agreement.

Government spokesman Sansern Kaewkamnerd was responding to media reports that the negotiations had concluded.

He said it was also untrue that an internal rate of return for the operation of 9.75% was agreed.

"No conclusion has been reached, nor has the prime minister approved any claimed outcome of the negotiations so far. Members of the public and the business operators should never believe such reports," said Lt Gen Sansern.

Negotiations are continuing and when any conclusion is reached and fair enough benefits are secured for the state, the existing concessions will then be altered so that the new agreement regarding operation of the train service on the missing link can then be implemented, he said.

Previously, Prime Minister Prayut Chan-o-cha invoked his power under Section 44 of the interim charter to tackle the missing link by allowing authorities to negotiate directly with BEM over the issue. The Purple Line is operated by the Mass Rapid Transit Authority of Thailand (MRTA) while BEM operates the Blue Line.

The 26km Purple Line, which has been operating since August, was supposed to run from Nonthaburi's Bang Yai station to Bang Sue station in Bangkok but currently ends at Tao Pun station, 1km away from Bang Sue, resulting in the missing link due to problems in the operating contract.

A Transport Ministry source, however, said the MRTA's board, chaired by Gen Yodyuth Boonyatikarn, had already approved an agreement to allow BEM to separate the train service contract portion concerning the missing one-station section from the rest of the Blue Line's extended routes that still are being negotiated.

The agreement was reached by the committee directing the Blue Line that is chaired by Chartchai Tipsunave, permanent secretary for transport, said the source.

The MRTA board had already forwarded the agreement to Gen Prayut for approval three days ago and it was still waiting to hear from the PM, said the source. Citing the submitted agreement, the same source said BEM will be hired for 693 million baht to install the system for the missing link, which will require six to eight months to complete.

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