In a strategic move to alleviate financial burdens, Bangkok authorities have announced plans to settle the outstanding debt related to the Green Line project in a single payment, scheduled for March. The decision, reached after consultations with the Committee to Control the Expenditure of the Additional Budget 2024, underscores the city’s commitment to fiscal responsibility.
Mr. Wisanu Supsompon, Deputy Governor of Bangkok, elaborated on the repayment guidelines, emphasizing the importance of adhering to established protocols for acquiring transportation assets. The debt in question pertains to the Electrical and Mechanical (E&M) components of the Green Line Project Extension 2, encompassing the Mo Chit-Saphan Mai-Khu Khot section and the Bearing-Samut Prakan period, totaling approximately 23.5 billion baht.
Bangkok’s memorandum of understanding with Krungthep Thanakom Company Limited will formalize the payment process, with negotiations underway to finalize interest rates and determine the exact payment date. Despite the anticipated repayment falling slightly below the budgeted amount, estimated between 170-200 million baht less, Bangkok remains poised to fulfill its financial obligations by the end of March.
Mr. Chakkapan Phew-ngam, Deputy Governor of Bangkok, outlined the meticulous process involved in disbursing the budget to settle the debt. With the Bangkok Council’s approval secured, the Traffic and Transport Bureau is tasked with overseeing the financial transactions in accordance with municipal regulations. From collecting pertinent information to preparing disbursement petitions, each step is meticulously scrutinized to ensure transparency and accountability.
Payment approval within the Bangkok Metropolitan Administration (BMA) is delineated based on predetermined thresholds, with varying levels of authority granted depending on the amount. Even after clearing the E&M debt, Bangkok maintains substantial debt-free savings amounting to approximately 28 billion baht, affirming the city’s prudent financial management.
Reportedly, discussions are underway regarding the Operating and Maintenance (O&M) debt, currently under review by the Supreme Administrative Court. With debts totaling around 26.5 billion baht, Bangkok continues to navigate fiscal responsibilities while striving to uphold the efficiency and sustainability of its transportation infrastructure.