Political standoff over Green Line

Political standoff over Green Line

Concession controversy continues to undermine stability of government as cabinet in chaos

An electric train is seen leaving Khu Khot station on the Green Line in Pathum Thani. (Photo: Apichit Jinakul)
An electric train is seen leaving Khu Khot station on the Green Line in Pathum Thani. (Photo: Apichit Jinakul)

All eyes are on the Bhumjaithai Party's next move against a 30-year extension of the Green Line railway concession with the maximum fare set at 65 baht.

The matter was withdrawn from last week's cabinet meeting agenda with the absence of ministers from the coalition Bhumjaithai Party -- including its leader, Deputy Prime Minister and Public Health Minister Anutin Charnvirakul, and Transport Minister and party secretary-general Saksayam Chidchob -- thought to be a factor.

The Interior Ministry has proposed that the agreement be extended from 2029 to 2059 with the stipulation that the maximum fare goes no higher than 65 baht.

Observers have claimed the Interior Ministry did not comply with regulations and principles of good governance. If the matter is approved, it may affect laws in the future, they have said.

Mr Anutin and Mr Saksayam had earlier opposed the extension and this was the seventh time the matter had been tabled then withdrawn prior to a cabinet meeting, according to a source.

Moreover, the absence of ministers from the Bhumjaithai Party has shaken the stability of Prime Minister Prayut Chan-o-cha's government given disunity within the ruling party amid growing political pressure.

The party brought up the reason Mr Saksayam was against the 30-year Green Line railway concession which was that he thinks the government would be disadvantaged by it.

The matter began during the tenure of former Bangkok governor MR Sukhumbhand Paribatra in 2012.

At that time, he chaired a signing ceremony for a contract to operate railway line extensions from On Nut-Bearing and Wong Wian Yai-Bang Wa sections from 2012-2042, in addition to Mo Chit-On Nut and National Stadium-Saphan Taksin sections from 2029-2042.

A study by the Bangkok Metropolitan Administration (BMA) said that since Bangkok Mass Transit System Plc (BTSC) has certain capital advantages, such as having its own maintenance centre, other firms may not be able to offer competing bids when the BTSC reaches the end of its term in 2029.

Despite MR Sukhumbhand's reiteration that BMA only hired the BTSC for a long-term operation which was not the extension of the concession, the matter had sparked criticism against him over violations of the Bid Rigging Act and Public-Private Partnership Act, prompting queries from opposition parties since.

On April 11, 2019, Gen Prayut invoked sweeping powers under Section 44 of the interim charter in a bid to resolve the issue by forming a panel to negotiate with the BTSC.

The negotiations led to the conclusion that a 30-year concession will be offered to the BTSC to operate Green Line extensions, as well as Bearing-Samut Prakan and Mo Chit-Saphan Mai-Khu Khot transferrals from the MRTA.

In exchange, the BTSC would have to shoulder the BMA's debt of almost 100 billion baht. Additionally, the maximum fare must also be capped at 65 baht.

Now, it has to be closely observed whether the matter will end on Feb 22.

A source said the issue may stem from the benefits of the MRT Orange Line project. This belonged to the MRTA, which had opened bidding for the western extension from Bang Khun Non-Thailand Cultural Centre section.

The BTSC, one of several potential bidders, filed a lawsuit against the MRTA including a decision to revise the terms of reference when bidding for the Orange Line's western extension.

The changes came despite the MRTA having already sold bid envelopes to several potential bidders.

The bid was later cancelled after the BTSC protested.

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