Thailand : Bangkok Mass Rapid Transit Project (Pink and Yellow Lines)

Transport / Urban public transport

The Thai government approved the implementation of PPP Net Cost scheme for the monorail system of the MRT Pink Line and Yellow Line projects in Bangkok in March 2016, in which the Mass Rapid Transit Authority of Thailand (MRTA) will be responsible for provision of the land and the right of way whereas the private sector will invest in all civil works, M&E systems, and rolling stocks, including operations & maintenance services. The two projects are feeder lines to diversify the transport modality of the city, and to feed passengers to the main MRT lines, in particular those that connect to Bangkok CBD. The projects will mitigate traffic congestion and associated environmental issues, provide convenient and cost-effective public transportation system, and reduce the government's fiscal burden. The projects are parts of the government's stimulus measures to improve infrastructure which is an essential part of the country's sustainable development.

The MRTA announced invitations for tender of the MRT Pink Line and Yellow Line projects in July 2016. Although the tender process was undertaken separately for the two lines, the BSR Joint Venture (BSR) submitted the most competitive proposal and was selected as the preferred bidder for both lines in December 2016. BSR has entered into the concession agreements with MRTA for the MRT Pink Line and Yellow Line projects, respectively, in June 2017. Under the concession, BSR will obtain the rights to operate the lines, and be entitled to receive farebox revenues, commercial development fees, and parking fees during the concession period.

BSR comprises BTS Group Holdings Public Company Limited (BTS Group), the market leader in mass transit business, operating existing Green line, Sino-Thai Engineering and Construction Public Company Limited (Sino-Thai), major construction company, and Ratchaburi Electricity Generating Holding Public Company Limited (Ratchaburi Electricity), one of the largest energy investment company.

The MRT Pink Line will operate between Min Buri district (Bangkok) and Khae Rai (Nonthaburi province), it will connect with existing MRT lines (e.g. Purple Line, Green Line), and new MRT lines (e.g. Red Line, Orange Line). The entire route length is about 34.5 kilometers, and the project components include 30 stations, one depot and stabling yard, and one park & ride building. The MRT Yellow line will operate between Lat Phrao (Bangkok) and Samrong (Sumut Prakarn province), it will connect with existing MRT lines (e.g. Green Line, Airport Rail Link), and new MRT lines (e.g. Blue Line, Orange Line). The entire route length is about 30 km., with 23 stations, one depot, and one park & ride building.

The government will provide subsidies during the first 10 years of the operation when the ridership is most uncertain. To further mitigate the ridership risk, ADB will extend a loan tranche whose door-to-door tenor is longer than the commercial banks to reduce the annual schedule repayment amount during the period following the expiry of the government subsidies.

The project is in line with ADB's country partnership strategy for Thailand, 2013-2016, and its country operations business plan, 2018-2020, both of which promote the support for private sector development and uphold two key core strategic areas for ADB's focus: infrastructure development, and environmentally sustainable development.

The project is also in line with ADB's Sustainable Transport Initiative, which promotes a transport system that is efficient, safe, environmentally friendly, and has urban transport as one of the key pillars for ADB operations in the sector.

Information disclosure and numerous consultation activities were conducted as part of the environmental impact assessment preparation. Information was disclosed in TV, radio, print media, leaflets, brochures, video, exhibition boards, and a dedicated website. Consultation meetings were held with communities along the route, local government officials, business operators, and private service providers.

The MRTA (i) conducted a census and full asset inventory, disclosed information, and consulted meaningfully with affected people; and (ii) offered compensation payments for land, structure, and lost income due to business disruption at replacement cost. The MRTA is implementing a robust grievance mechanism where requests for changes in design are being implemented to minimize impacts.