From left: Mr. Surapong Laoha-Unya, Executive Director of the BTS Group, Mr. Keeree Kanjanapas, Chairman of the BTS Group, Mr. Rum Herabat, Chief Executive Officer of Ratchaburi Electric and Mr. Pakpoom Srichamni, President of Sino-Thai, on behalf of the BSR Joint Venture, giving information regarding the Pink Line Project: Khae Rai - Min Buri Section and Yellow Line Project: Lat Phrao - Samrong Section at the Surasak Room 2-3,11th Floor of the Eastin Sathorn Hotel Bangkok.
The BSR Joint Venture (BSR), comprising of BTS Group Holdings Public Company Limited (BTSG), leading in mass transit operating business , Sino - Thai Engineering and Construction Public Company Limited (STEC), leading in construction service business and Ratchaburi Electricity Generating Holding Public Company Limited (RATCH), leading in integrated energy business, recently held a press conference regarding the Pink Line Monorail Project : Khae Rai - Min Buri Section and Yellow Line Monorail Project : Lat Phrao - Samrong Section, in occasion that the BSR Joint Venture is nominated by the Mass Rapid Transit Authority of Thailand (MRTA) to be the winning bidder for the concessions of the both line projects.
Mr. Keeree Kanjanapas, Chairman of the BTS Group, on behalf of the BSR Joint Venture, expressed gratitude to the government and the Mass Rapid Transit Authority of Thailand (MRTA)for nominating the BSR as the winning bidder for the concessions, in compliance with the Private Investments in State Undertaking Act, B.E. 2556 (2013). Under prescribed terms, the concessionaire will be responsible for the design, build, and supply of Civil Works, M&E Systems and O&M Services for the two projects. Accordingly BSR will now enter into further negotiations for the implementation of a PPP Net Cost arrangement for both the Pink Line Monorail Project : Khae Rai - Min Buri Section and the Yellow Line Monorail Project: Lat Phrao - Samrong Section, results of which are to be submitted for cabinet approval in March or April 2017.
Under the PPP Net Cost arrangement for the Pink and Yellow Line Projects, the government will be responsible for the acquisition of land and provide funding of up to 20,135 billion Baht for civil works construction of the Pink Line, and 22,354 Billion Baht for the Yellow Line. The concessionaire will carry out civil works construction, install M&E systems, and provide train operation and maintenance services. The total investment cost of the Pink Line is 53,490 Billion Baht and for the Yellow Line 51,810 Billion Baht. The concession contracts for both projects cover a period of 33 years and 3 months (construction period of 3 years 3 months, followed by 30 years of train operation and maintenance). The concessionaire will be responsible for train operation and maintenance, automatic fare collection and commercial development in the system throughout the concession contract, with revenue going to the MRTA.
Mr.Keeree added that BTSC, as an established investor in elevated train development for more than 25 years since, became the country's first mass transit railway operator when the BTS SkyTrain opened in 1999 and now has over 17 years of experience operating under a PPP net cost concession. Over the years the company has faced many difficulties, but has succeeded in providing fast, convenient and high quality transport services for the people of Bangkok. The company has undertaken a thorough feasibility study of these two projects and is confident that the two lines are suitable for investment by the private sector and can achieve an acceptable return. Given the strong alliance with Sino - Thai and Ratchaburi, BSR Joint Venture can ensure that the project will be run efficiently and that the cost of construction is competitive. During the bidding process, Sino - Thai, the country's leading construction company, worked hard to establish the most cost-effective pricing for the civil works, while Ratchaburi, with established expertise in electrical power systems provided detailed technical advice, lending further competitive edge to the bid. Together with a thorough knowledge of train system procurement and good connections with international suppliers established over many years, the BSR Joint Venture is confident in its capability to both invest in and successfully deliver these major new mass transit projects.
In addition, to further enhance the convenience and viability of the Pink and Yellow Lines for the travelling public, BSR has offered to extend the Pink Line a distance of 2.6 km. from Sri Rat Station (PK 10) on Chaeng Wattana Road, to provide a direct connection to Muang Thong Thani. This densely populated area is rapidly expanding with major commercial developments and government offices, as well as the site of the Impact Muang Thong Thani Exhibition Trade Centre, which hosts many international events attended over 2 million people. The new line extension would provide both added convenience as well as reduce road traffic congestion at peak times.
For the Yellow Line Project, BSR Joint Venture is offering to extend the line from Ratchada Station (YL01) running along Ratchadapisek Road and terminating at a new station close to the Ratchayothin intersection. The new station would then be linked via a walkway to the Green Line extension (Mo Chit – Ku-Kot now under construction) at Station 10 (Soi Phaholyothin 24).
In order to provide passengers with even more travel convenience, BSR will provide one ticket: Single Journey and SmartPass (Mangmoom Card) for use on the existing line, pink line and yellow line. The links with existing lines will be paid-to-paid, allowing passengers to connect seamlessly without exiting and re-entering the system.
BTS Group, Sino - Thai and Ratchaburi intend to invest in both projects, with each project having a fully registered share capital of 14 billion, totaling 28 billion. The remaining investment of 70 billion will be in the form of a loan from an appropriate financial institution and/or raised from the capital market i.e. bond issue etc. BSR Joint Venture has already discussed arrangements with various financial institutions and concerned parties, and believe that funding can be secured to meet the project schedule.
Mr. Pakpoom Srichamni, President of Sino-Thai, said that the company has undertaken a careful feasibility study of both projects and is confident that it is able to construct the civil works as scheduled within the price offered. Launching construction of both projects simultaneously will lead to various cost advantages from combined resourcing.
Mr. Rum Herabat, Chief Executive Officer of Ratchaburi Electric said that the company is interested to invest in the new railway system, as it has established expertise and resources in electrical systems related to the mass transit. The company will work closely with BTS Group and Sino-Thai on the project implementation and is confident in the investment potential of the Pink and Yellow Line Projects.