Outgoing Deputy Transport Minister Pailin Chuchottaworn has defended a contentious proposal to grant Bangkok Expressway and Metro Plc (BEM) a 30-year contract extension, saying it is the "best way" to write off huge debts.
The Expressway Authority of Thailand (Exat), which owes BEM 4.3 billion baht, plans to allow the firm to operate three expressways for that period, but the move was temporarily shelved after a protest by the State Enterprises Workers' Relations Confederation, which staged a rally at the Transport Ministry earlier this month.
Mr Pailin said on Friday it is fine to negotiate with BEM and in his view, the deal is "likely to be the best way out".
The outgoing deputy minister also referred to the government's stance against clearing the debt with cash.
The Transport Ministry only put the proposal on hold by not forwarding it to the cabinet, but this does not mean it has cancelled it, Mr Pailin said last week. He yesterday refused to comment on whether the debt swap plan will put BEM at an advantage.
"The final say will rest with the Exat board and the new government," he said.
Exat was dragged into a legal battle with BEM's subsidiary, Northern Bangkok Expressway Co Ltd (NBCL), after the expressway authority violated a contract by building expressways that run parallel to a BEM-built structure.
The main issue of contention is a section of Exat's Don Muang Tollway from between the National Memorial and Rangsit. It was alleged to be snatching revenues from NBCL which operates the nearby Pak Kret-Bang Pa-in expressway.
The case ended with a court ruling requiring Exat to pay 4.3 billion baht to BEM in compensation.
Meanwhile, the construction of a 2.6-kilometre link between part of the Don Muang Tollway and Si Rat-Outer Ring Road expressway (Kanchanaphisek-Chatuchak) is expected to be completed in December, according to an Exat source.