Thai government setting up 200 billion baht fund to repurchase all electric train concessions to support the 20 baht flat fare policy
The government is setting up a 200 billion baht fund to repurchase all electric train concessions to support the 20 baht flat fare policy, said Transport Minister Suriya Juangroongruangkit.
The Ministry of Finance and the Ministry of Transport are studying how to ensure financial viability and identify funding sources, with an emphasis on expediting the process.
He also insisted that the 20 baht flat fare policy will be realized, with services available on all routes for public use by September 2025.
This follows the implementation of a 20 baht fare on the red and purple lines, which are state-operated and can be executed immediately.
The result from these two lines has been a 50% increase in ridership.
Suriya added that the establishment of the fund will require discussions with the Council of State and careful study, as there must be a revenue source for repurchasing the trains. This initiative will also need to be enacted as law, and he believes the coalition parties will support it.
If the Ministry of Finance successfully establishes a fund for repurchasing the trains, they can proceed with the buyback immediately. However, if the Ministry of Finance is delayed, the Ministry of Transport will use revenue shares from the Mass Rapid Transit Authority of Thailand (MRTA) on the blue line to subsidize fares for the public while awaiting the completion of the study.
The Ministry of Finance will also consider various methods for establishing the fund and identifying funding sources, including a congestion tax.
The Office of Transport and Policy Planning has studied this in collaboration with the German International Cooperation Agency (GIZ) in Thailand, which provided free assistance.
It is anticipated that around six routes will implement the congestion tax, which could generate approximately 700,000 vehicles per day. Assuming a charge of 50 baht per vehicle, initial estimates suggest sufficient revenue for the fund to repurchase the electric train concessions.
Source: Thai Examiner on twitter
