Bangkok: The Bangkok Metropolitan Administration (BMA) is in the process of transferring the Green Line Skytrain to the government, a move aimed at reducing its future financial burden and reallocating funds for urban management and public welfare.

According to Thai News Agency, Bangkok Governor Chatchart Sittipunt disclosed that the Cabinet had resolved approximately two months ago to transfer the Green Line, including all its assets and liabilities, to the government. This transfer aims to facilitate the management of a unified ticketing and fare system. Governor Chatchart emphasized that alleviating this financial burden would enable Bangkok to allocate more funds toward enhancing public services in other areas.

The transition is expected to be smooth for BTS, as the necessary conditions are already established. It is primarily a change of ownership, with no anticipated alterations to contract terms. The key issue involves discussions with the government regarding the book value, or actual value, of the line. The government will need to determine the compensation for the BMA. This development is viewed positively, as it will ease the financial strain on the BMA, particularly concerning fare issues. The BMA cannot subsidize the entire line, so this transfer will help mitigate the fare differences and generate funds for other urgent developments in Bangkok. However, discussions with the Bangkok Metropolitan Council are necessary due to the substantial nature of the asset.

Governor Chatchart also mentioned that outstanding construction costs are included in the book value and should be settled by offsetting the debt. If transferred back, these costs would belong to the Mass Transit Authority of Thailand (MRTA). The current value of these assets needs to be determined, as the revenue will be fully owned by the BMA after 2029. The BMA has already covered certain expenses, such as train costs and operating expenses throughout the concession period. A valuation is currently underway, involving negotiations and discussions related to the Joint Venture Act post-2029.