BTS Group Holdings Plc, which operates the skytrain lines in Bangkok, formed a partnership with PT Jakarta Monorail for joint development of two monorail lines in the Indonesian capital at a cost of US$800 million.
An executive of BTS who asked not to be named said the company was approached by the Indonesian partner, who was granted a concession to operate monorail lines in Jakarta.
"The partnership has been signed. We are sending staff to study the projects in detail," said the executive.
Under the concession, PT Jakarta will operate two lines of 14.3 kilometres and 14.7 km. The partnership also included Ortus Infrastructure Capital Ltd, which is a major shareholder of PT Jakarta Monorail.
Surapong Laoha-Unya, BTS director and chief operating officer of Bangkok Mass Transit System (BTSC), said the two monorail lines are expected to be operational in 2016, with BTS the operator for the entire concession period of 40 years.
The management fee for the train lines has not been finalised.
Mr Surapong said BTS is also about to join the bidding process for two electric train lines in Ho Chi Minh City, Vietnam.
The project comprises two routes of 13 km and 10 km, mostly underground.
"We are looking into the conditions of the terms of reference, which are expected to be tendered soon," he said.
Locally, BTS expects to join bids to operate two mass transit train lines in Bangkok later this year.
The Bearing-Samut Prakan line, with a distance of 12 km, is under construction, while the route linking Mor Chit, Saphan Mai and Khu Khot in Pathum Thani is projected to seek cabinet approval soon for its construction and operating contract bidding.
The Bearing-Samut Prakan section is expected to require about 10 billion baht to buy the trains.
The Mor Chit-Saphan Mai-Khu Khot section should necessitate around 20 billion, of which two-thirds are expected to be bank loans. BTS has cash on hand of over 30 billion baht, Mr Surapong said.
Shares of BTS closed yesterday on the Stock Exchange of Thailand at 7.85 baht, up 10 satang, in trade worth 1.64 billion baht.