Thai rail PPP projects to be tendered in June

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Thai rail PPP projects to be tendered in June

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Thailand's government has plans to tender two metro projects in Bangkok: the development of the MRT Yellow and Pink lines.

According to sources, the tender processes are scheduled to be launched by June. The rail lines are expected to be operational by 2019 after a 3 year construction period.

Transport Minister Arkhom Tempittayapaisith said that the two projects would be under the consideration process of the public-private partnership (PPP) fast-track scheme. He added that the Mass Rapid Transit Authority of Thailand (MRTA) has plans to set up a committee, under the Article 35 of the PPP law, to invite private firms to bid for the projects.

The state will be responsible for land expropriation, and the private parters will bear the costs of civil works, the train systems and operation & maintenance. The concession contracts would have a period of 30 years.

Bangkok's 30 km MRT Yellow Line will link Lat Phrao with Samrong with 23 stations. It is expected to handle a ​daily ridership of 247,900 persons. The total project investment is estimated at Bt51.8 billion (US$1.46 billion).

The 29.1 km Pink Line will link Khae Rai to Min Buri with 30 stations. It is expected to handle a ​daily ridership of 270,000 persons. The total project investment is estimated at Bt53.5 billion (US$1.51 billion).

Regarding to the government subsidy, Arkhom Tempittayapaisith commneted:

"The Cabinet also approved a state subsidy for civil engineering works capped at Bt20.14 billion for the Pink Line and Bt22.35 billion for the Yellow Line projects."

The two projects are part of a 5 project plan to stimulate the country's economy and improve its transport system. The three other projects are the following:

  • Operation of Blue Line extension project.
  • Bangpa-in - Nakhon Rachasrima motorway PPP project. 
  • Bangyai - Kanchanaburi motorway PPP project. 

The five projects are part of Thailand's infrastructure development plan from 2015 to 2020. Under this plan, Bt1.57 trillion (US$43.6 billion) is expected to be invested, most of it through partnerships with the private sector. The plan includes a total of 66 projects in 20 categories, 80% of them being transport projects.

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