Bus option study rolls into cabinet

A plan to equip the Bangkok Mass Transit Authority with a new bus fleet should not pose a long-term financial burden for the government, according to a study to be forwarded to the cabinet today.

Members of the National Economic and Social Development Board have completed a one-month study on the BMTA plan after being assigned by the government to find the best solution to how to handle new buses.

Transport Minister Sohpon Zarum of the Bhumjaithai Party has pushed for the lease of new buses powered by natural gas to improve services and the financial health of the BMTA.

But Prime Minister Abhisit Vejjajiva and the Democrat Party wanted the NESDB to investigate both leasing and purchase options - and they wanted a straightforward answer.

The study undertaken by NESDB board members led by chairman Panas Simasthien, however, did not directly answer the question of which option was the best, giving the cabinet just four suggestions.

The board decided not to reveal details of the study yesterday because it did not want to interfere in the cabinet decision, NESDB secretary-general Ampon Kittiampon said.

It remains uncertain whether the cabinet will make a decision today after seeing the report or will keep it for further study.

Mr Sohpon said yesterday the Transport Ministry would accept the decision of the cabinet. He stressed the matter would pose no threat to ties between Bhumjaithai and Democrats in the coalition government.

One of the four suggestions was that the BMTA's improvement plan should not put a greater burden on the government and that it should improve the agency's performance.

The other suggestions are: using estimates of how many passengers would use the buses as a basis for considering how many new buses would be needed; the need to revamp routes to end redundancy; and devising measures to guarantee better and safer services.

The number of bus users could decline given that new mass transit lines would become the main public transport service, Mr Ampon said.

The ministry-pushed project needs 4,000 new buses for the BMTA. It will replace 3,500 buses which have been in service for between eight and 18 years.

The BMTA says it has a total debt of 67 billion baht. Its loss is about 6 billion baht a year and it needs a financial subsidy of 9 billion baht from the government every year. But analysts estimate the accumulated debt is 57 billion baht.

Pallapa Ruangrong, a member of the Energy Regulatory Commission who studied the reform plan for the BMTA, urged a quick solution to the plan to rescue the bus agency.

As far as the balance sheet and financial status were concerned, "the BMTA is practically bankrupt", she said in a forum to discuss the future of the agency. Whether the buses are bought or leased, the BMTA needs new buses to improve its fleet, she said.

"Doing just a little thing now will at least help the BMTA stop the bleeding," she said.

Ms Pallapa said the BMTA had to do more to improve than just having new buses if it wanted to survive.

Overhauling the routes and restructuring the organisation were among issues needed to be addressed by the BMTA, she said.

Veerapong Wongwaen, deputy leader of the BMTA union, said the union favoured buying or the hire-purchase option so the buses would be the agency's asset. The union would lobby the prime minister to support those two options, he said.