Napapol Jirakul, a councillor for Bangkok Noi district and chairman of the committee studying issues surrounding the Green Line train project, revealed to “Kaohoon” that Bangkok Metropolitan Administration (BMA) is currently facing a substantial unpaid debt owed to Bangkok Mass Transit System Public Company Limited (BTSC), a subsidiary of BTS Group Holdings Public Company Limited (SET: BTS), for operations and maintenance (O&M) services on the Green Line extensions, both Phase 1 and 2.
The total debt, including interest, is now standing at approximately THB 32 billion, suffering from an interest burden that increases at a rate of THB 5.4 million per day. BMA’s unencumbered cash reserves stand at only THB 27 billion, which is insufficient to cover the entirety of this debt at once.
Bangkok Governor Chadchart Sittipunt has assigned a negotiation team from Krungthep Thanakom (KT) and the Traffic and Transport Department (TTD) to hold talks with BTS in hopes of agreeing to a partial payment and entering negotiations on both principal and interest terms to obtain the most favorable deal.
Governor Chadchart will submit a financial ordinance to the Bangkok Metropolitan Council (BMC) requesting approval to use BMA’s cash reserves to settle the debt. This is expected to be formally proposed to the BMC before September 13, with the entire process anticipated to conclude by the end of September this year. The timeline is crucial as it seeks to prevent the payment from spilling into the 2026 fiscal year, thereby enabling disbursement from the 2025 fiscal reserves.
Regarding BMA’s cash reserve status, the administration presently holds total reserves of between THB 80-90 billion. However, a significant portion is legally earmarked for other expenses, leaving only about THB 27 billion in unencumbered funds. By regulation, a minimum reserve of THB 5 billion must always be maintained.
The role of the BMC is to review and approve the appropriateness of the debt negotiations and the use of reserves, though it cannot directly disburse the funds itself. The final decision and execution authority rest with the governor.
The projected timeline is as follows: before September 13, the governor will submit the financial ordinance to request use of the cash reserves. By the end of September, council review should be completed and the ordinance published in the Royal Gazette, officially permitting the use of 2025 fiscal year reserves for payment.
The BMA’s management of this substantial debt is being closely watched by the financial and business community, as delays or missteps could have far-reaching implications for the city’s finances and for BTS Group’s financial statements.
