The Finance Ministry has moved to assist the state-owned bus operator Bangkok Mass Transit Authority (BMTA) by making its 90-billion-baht-plus debt a public debt on condition that the state enterprise improves its efficiency.
Finance Minister Sommai Phasee yesterday said discussions between the Finance and Transport ministries had resulted in his ministry agreeing to allow the BMTA to transfer all its debt from its balance sheet to the public arena.
Sommai: Review of busoperator's operation
"By doing so, the debt will no longer be a problem for the BMTA, as it will become the government's burden instead," he said, adding that the problem would be addressed as soon as possible.
"If we let the BMTA keep operating this way for another five or 10 years, debt will keep piling up and its financial problems will only worsen," Mr Sommai said.
The BMTA has the second-largest financial burden among Thailand's state enterprises, with accrued debt of 90 billion baht.
The largest financially ailing state enterprise, the State Railway of Thailand, has debts surpassing 100 billion baht.
Mr Sommai said the state bus operator's operation should be quickly reviewed, with expired co-bus concessions held by independent operators renewed in order to maintain the BMTA's revenue stream.
In particular, underperforming bus routes operated by the BMTA itself should be opened for qualified independent bus operators to take over in the form of a co-bus concession, he said.
"We're ready to rescue the BMTA, but at the same time it is essential for the BMTA to help itself too. It must figure out how to improve its operation. But we simply cannot let them operate poorly and struggle under such a load of debt like it's been doing for decades," Mr Sommai said.
Kulit Sombatsiri, director of the State Enterprise Policy Office, agreed the city bus concession should have been managed better.
The BMTA has reported assets worth 7.62 billion baht with total liability of 90.7 billion and an accrued operating loss of 94.6 billion.
For the first nine months of the previous fiscal year, the BMTA reported revenue of 5.72 billion baht, operating expenses of 7.34 billion and interest expenses of 2.15 billion, with a net loss for the period of 3.77 billion.
Transport Minister Prajin Juntong said his ministry was considering a rehabilitation plan for the BMTA.
The state agency would minimise its role as both supervisor and bus operator to being only an operator, with the Land Transport Department assuming the role of regulator.
ACM Prajin said city bus route adjustment would be managed by allowing the Bangkok Metropolitan Authority to grant more private concessions for more routes.
The BMTA operates bus routes throughout Greater Bangkok.