City Hall has decided to postpone the bidding process to select a private partner to jointly invest in the 25.6-billion-baht North-South extensions of the skytrain's Green Line, as it tries to seal a deal with Bangkok Mass Transit System Plc (BTS).
BTS is the sole concessionaire with the right to operate services between Mo Chit and On Nut stations.
The postponed bid concerns the right to operate services on the North-South extensions of the line between Khu Khot and Lam Luk Ka, as well as between Kheha and Bang Pu.
Bangkok Metropolitan Administration (BMA) said it is still reviewing the terms of reference (ToR) for public-private-partnership (PPP) cooperation on the North-South extensions.
"We had initially planned to forward the ToR draft to the cabinet by early next year, but the draft -- which contains the results of our initial study -- was rejected by the State Enterprise Policy Office (Sepo)," said Phanurak Klannurak, director of the BMA's Traffic and Transport Department.
Sepo said the study failed to assess the impact on passengers in the event that two separate companies were given concessions to operate services on the main section of the Green Line and its extensions.
"The scenario is highly likely to happen, as the BMA is expected to allow BTS to continue operating services between Mo Chit and On Nut until their concession expires," said Mr Phanurak.
"A new company may be selected to operate services along the Green Line's extensions."
Mr Phanurak said Sepo also asked the BMA to look into how it would ensure convenience for passengers
This was needed especially in the event that they might have to change trains even while travelling along one line.
However, the BMA has yet to rule out the possibility of allowing BTS to operate on the Green Line's extensions, he said, before adding the BMA may also run its own services.
"No decision has been made," he said.
A source in the BMA said BTS has so far agreed to only one out of the three conditions imposed by the BMA for it to be allowed to operate services on the North-South extensions without having to go through a bidding process.
BTS has agreed to assume 100-billion-baht worth of assets and debts incurred during the construction of the Green Line from the BMA, the source said.
However, the source said BTS has yet to sign off on the two remaining conditions -- which are to charge passengers a fixed rate of 65 baht per ride, and commit to fully invest in the entire route while paying a percentage of its annual income from the services to the BMA.