Three loss-ridden state enterprise agencies are being urged to finalise their business rehabilitation plans this month so they can be forwarded to the “superboard” for consideration early next year.
Transport Minister ACM Prajin Juntong said the State Railway of Thailand (SRT), the Bangkok Mass Transit Authority (BMTA), and Thai Airways International (THAI) have yet to conclude their rehabilitation plans.
The proposals will be vetted by a sub-committee on state enterprises chaired by Lt Gen Anantaporn Kanjanarat before they go before the State Enterprises Policy Commission, or superboard, for approval.
The superboard, appointed by the National Council for Peace and Order (NCPO), supervises, governs and monitors operations at state enterprises to ensure efficiency and transparency.
According to ACM Prajin, who chairs a separate panel on rehabilitation of state enterprises, the rehabilitation plans for the SRT and the BMTA have been approved by the agencies' boards.
The SRT has initially come up with seven core strategic plans designed to improve rail services and prepare the agency for new technologies.
The SRT’s rehabilitation plan comprises two stages with the first stage covering 2015 and the second covering 2016 and onwards. This will see the establishment of a department of rail transport to oversee railway investment and regulation.
He said one of the SRT’s challenges is management of two chunks of debt worth 150 billion baht. Of the total, 85 billion baht was incurred from the SRT's operations and the remainder from its pension scheme.
The rail agency has to review the feasibility of its proposed income-generating plans including commercial development of its land to make sure it has enough money to cover these costs, he said.
“The plan for 2015 will focus on personnel management so they are ready for new technologies and on debt management before the new department is set up. Clear details in the plan must be screened by the subcommittee before it goes to the superboard,” he said.
He said the BMTA’s rehabilitation plan will focus on bus operations to accommodate the new batch of NGV buses and the drawing of bus routes. The city bus agency is in the process of procuring 3,183 NGV buses worth 13 billion baht.
According to ACM Prajin, the bidding process for the first batch of 489 buses is scheduled for early next month so delivery is likely to be delayed to May next year. The second batch of buses will proceed after that with delivery expected late next year.
On THAI’s rehabilitation plan, ACM Prajin said it has yet to be approved by the airline's board.
The flag carrier in September resolved to set up its own superboard to oversee a financial rehabilitation plan aimed at increasing the carrier’s revenue by three billion baht and cutting costs by four billion baht. The cost reduction would encompass its operational, personnel and overtime expenses.