The Finance Ministry and Transport Ministry plan to establish a steering committee to drive the government's 20-baht flat fare policy for Bangkok's entire electric train system.
According to Tibordee Wattanakul, director-general of the State Enterprise Policy Office, this committee would decide which train lines will be used to secure funding for the policy.
Mr Tibordee said implementing a 20-baht fare would be easier if the private concession holders in Bangkok agreed to sell their concessions to the government.
The government will use the electric train system as collateral for securitisation to secure funding from investors in a financial instrument, he said. The government estimates roughly 200 billion baht is needed to fund the purchase of concessions from the existing concession holders, said Mr Tibordee.
However, if the private concession holders refuse to sell to the state, negotiations may be necessary to amend the concession agreement to allow the government to implement the 20-baht fare policy.
In addition, calculations are needed to determine the monthly compensation that must be paid to the private concession holders, he said. A dedicated fund would also need to be established to support this project, with an estimated budget of less than 200 billion baht, according to Mr Tibordee.
He acknowledged that negotiations to purchase the concessions would be challenging, as the public and private sectors may have different assessments regarding the project's cash flow. Private firms may anticipate higher revenues than the government does.
The 20-baht flat rate fare for Bangkok's electric trains is one of the flagship policies of the Pheu Thai Party, the leading coalition partner in the current government, aimed at alleviating the financial burden on urban and metropolitan commuters.
Finance Minister Pichai Chunhavajira said earlier the government is expected to establish a 300-billion-baht infrastructure fund within this year to support the implementation of the 20-baht flat fare policy for Bangkok's entire electric train system.
Mr Pichai said the infrastructure fund would use the existing assets of the electric train systems as collateral to raise capital for the scheme, which was a peldge made during Pheu Thai's election campaign.
He said the fund might have a lifespan of 30 years, with potential losses in the first eight years.
Following that period, returns are projected to be positive, and the overall return over the 30-year period should also be positive, said Mr Pichai.
The 20-baht fare policy also requires the Common Ticketing System Management Act.
The House of Representatives recently approved a draft of the act on first reading.