BMTA buses given green light

POLITICS

Plans by the Transport Ministry to lease 4,000 natural gas-fuelled buses at a cost of 64 billion baht have been given the green light by the cabinet.

BangkokMassTransit Authority workersrally outside Government House to protest against what they say is a government plan to privatise the debtridden state enterprise. The demonstration took place yesterday after the cabinet approved a plan to lease 4,000 natural gas-powered air-conditioned buses. CHANATKATANYU

Transport Minister Sohpon Zarum yesterday said the cabinet had approved the project for the Bangkok Mass Transit Authority to lease the air-conditioned buses for 10 years.

The scheme is part of a plan to improve the BMTA's management and services.

"The cabinet has approved the plan proposed by the BMTA even though many cabinet members expressed differing views," Mr Sohpon said.

Prime Minister Abhisit Vejjajiva said the project could be up and running in two years.

The approval follows a review of the project by the National Economic and Social Development Board looking at both the purchase and lease options.

The decision was based on an NESDB study which found that leasing the buses equipped with an electronic ticket system would pose less of a financial burden for the debt-ridden agency, Mr Abhisit said.

Critics of the scheme have questioned its viability because of the heavy investment required.

Mr Sohpon said that in order to ensure transparency in the project to improve the BMTA, his ministry would draw up an action plan covering details of the operation, a definite timeframe, an early retirement scheme for 7,000 BMTA staff to downsize the agency, a plan to acquire a bus depot and the budget required to cover the overall project.

The plan would take no more than a month to complete before it could be submitted to the cabinet, he said.

A committee will be set up to look into details of the terms of reference of the tender for the lease scheme, a project which has been pushed hard by the government coalition partner, the Bhumjaithai Party, and its power broker Newin Chidchob.

The committee will be made up of representatives from the Transport Ministry, the BMTA, the Budget Bureau, the Finance Ministry, professional organisations and other relevant sectors. The committee will determine the median price for the bid and set conditions to boost price competitiveness.

Mr Sohpon said the original draft terms would be adjusted.

Tenders for the project were expected to be called this year, he said.

Mr Sohpon said the first batch of 1,500 buses was expected to be delivered within 15 months of the contract being signed. The rest would be delivered within another 24 months.

Use of an e-ticket system casts a cloud over the future of BMTA conductors and the prime minister said the bus agency should come up with an effective early retirement scheme.

BMTA board chairman Piyapan Champasut welcomed the cabinet approval for the leasing of the buses. It coincided with a BMTA study which proposed that leasing the buses was the best way to serve Bangkok's commuters.

Puea Thai Party spokesman Prompong Nopparit said the approval of the bus project was proof that favours had been given and returned among coalition members.

More than 500 members of the BMTA labour union yesterday gathered at Government House to demand the government scrap the plan to privatise the bus agency by granting private firms concessions to operate 155 routes.

They said privatisation would cost more than 10,000 BMTA staff members their jobs.