[sustran] news on Bangkok mass transit

[Craig Townsend]

>From the Bangkok Post, 23 January 2004
http://www.bangkokpost.com/Business/23Jan2004_biz68.html

Mass transit operators insist on fair values: Skytrain, subway firms ready for talks

The operators of Bangkok's two mass transit projects say they are willing to
discuss the government's plan to buy back the concessions, but warn that
hammering out a deal might not be easy.

``We are ready to discuss the issue, but the government itself has to come up
with proper values,'' said a source from Bangkok Metro Company Ltd (BMCL), the
subway operator.

``The deal should not be evaluated only on construction cost considerations, but
also on other costs, and future income of which a lot is expected to come from
advertising, related developments and telecommunications systems.''

The source also said that as the subway project was about to open, the value of
the company's shares should increase accordingly.

In addition, he said the government should inform the public clearly about the
source of funding used to buy back the two projects.

Andres Klocke, head of the German development bank Kreditanstalt fur
Wiederaufbau (KfW), a major creditor of Bangkok Transit System Co (BTSC), said
the skytrain operator was willing to listen, but had yet to be approached
officially by the government.

BTSC owes KfW US$452 million, the International Finance Corp, the investment arm
of the World Bank, $80 million, and Siam Commercial Bank 12 billion baht.

According to Mr Klocke, BTSC is in the final stages of debt-restructuring
negotiations.

The long-awaited 45-billion-baht debt-restructuring deal for the skytrain
operator is expected to be settled in the first quarter of this year, he said.

Transport Minister Suriya Jungrungreangkit said on Wednesday that the government
wanted 100% control of Bangkok's underground and the skytrain in order to
control fares and integrate the two systems with future transport expansion plans.

Mr Suriya said he had held talks with Ch. Karnchang chief executive Plew
Trivisvavet about buying the construction company's 67% stake in BMCL.

BMCL was awarded a 25-year concession to operate the 100-billion-baht subway
system in the capital.

The 20-kilometre underground railway is due to begin commercial operations in
August following a soft launch with free service in April.

Other BMCL investors include toll road operator Bangkok Expressway (BECL) and
three state-controlled banks: Krung Thai Bank, Thai Military Bank, and Siam City
Bank.

The government has invested about 100 billion baht on the subway project so far,
while BMCL spent about 13 billion baht.

Tanayong Plc is the biggest shareholder in BTSC with a 29% stake.