Bangkok ordered to pay over 12 billion baht to BTS within 180 days
The Supreme Administrative Court upheld a ruling requiring Bangkok Metropolitan Administration (BMA) and Krungthep Thanakom Company to pay BTS Group Holdings over 12 billion baht in outstanding debts related to the Green Line extension project within 180 days.
The Supreme Administrative Court delivered its final verdict at 9am today, July 26, affirming the Central Administrative Court’s decision. The BMA and Krungthep Thanakom Company (KT) must compensate Bangkok Mass Transit System Public Company Limited (BTS) for breach of contract concerning the operation and maintenance services of the Green Line extension. The ruling mandates that the payment, including interest, amounting to 11.76 billion baht, be completed within 180 days from the finalisation of the case.
The case revolves around the BMA’s Green Line extension project, which includes two segments: the first extension from Saphan Taksin to Bang Wa and from On Nut to Bearing, and the second extension from Mo Chit to Khu Khot and from Bearing to Samut Prakan. The court ordered the repayment due to BMA’s failure to adhere to the contractual obligations for compensation for operation and maintenance services provided by BTS.
The ruling specifies that the BMA, having appointed Krungthep Thanakom, a company in which BMA holds a 99.98% stake, for the project to ensure operational flexibility, must also bear responsibility for the unpaid debts.
“Since Krungthep Thanakom has outstanding debts under the contract for the operation and maintenance services of the Green Line extension, BMA is jointly liable to settle these debts to BTS.”
The breakdown of the debt includes 2.35 billion baht for the first extension, with accrued interest of 2.2 billion baht. For the second extension, the debt amounts to 9.4 billion baht, accompanied by interest of 8.79 billion baht.
The interest is calculated based on the Minimum Lending Rate (MLR) announced by Krung Thai Bank Public Company Limited, from the date the lawsuit was filed until the payment is fully made, reported KhaoSod.
“The court has concluded that BMA’s actions in managing the Green Line extension projects and delegating Krungthep Thanakom to handle operations require them to jointly cover the unpaid debts to BTS.”
Source: https://thethaiger.com/news/national/bangkok-ordered-to-pay-over-12-billion-baht-to-bts-within-180-days
