DistantNews
Support us
🇹🇭 Thailand /Energy & Infrastructure

Infrastructure fund to help finance rail buyback plan

From Bangkok Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Thailand's government plans to buy back rail concessions in Greater Bangkok for up to 200 billion baht to reduce fares.
  • Funds will be raised through the Mass Rapid Transit Authority and a gradual issuance of infrastructure fund units.
  • A common ticketing scheme, with fares between 17-45 baht, is set to launch by January 1, 2027, to ease commuter costs.

The Thai government is planning a significant move to make public transport more affordable by buying back all electric train concessions in Greater Bangkok for an estimated 200 billion baht. This initiative aims to reduce fares and improve accessibility for commuters.

Funds raised via the infrastructure fund will not be regarded as public debt.

— Tiboldee WattanakulExplaining the financial mechanism for the concession buyback.

Funding for the concession buyback will be sourced from the Mass Rapid Transit Authority of Thailand and through the phased issuance of infrastructure fund units. Tibordee Wattanakul, director-general of the State Enterprise Policy Office, anticipates strong investor interest in these low-risk funds, which typically offer yields of 6-7%. Funds raised this way will not be counted as public debt.

The valuation of 200 billion baht is based on projected future cash flows and benefits for concession owners during their remaining contract periods. If the buyback occurs in 2027, some concessions, like the Green Line's which ends in 2029, will have shorter remaining terms, potentially lowering the total cost. The government believes this state intervention is worthwhile if it can manage the lines efficiently while maintaining low ticket prices, thereby increasing passenger numbers.

The government's plan to buy back the concessions of all electric train lines for a maximum of 200 billion baht is part of an effort to make public transport more affordable.

— Tiboldee WattanakulStating the primary goal of the concession buyback initiative.

In parallel, the cabinet has approved a common ticketing scheme for Bangkok's electric rail services, aiming to ease the cost of living for commuters. This integrated fare system will allow passengers to travel across all mass transit lines with a single entry payment, with fares ranging from 17 to 45 baht depending on the distance. Transport Minister Phiphat Ratchakitprakarn stated the ministry intends to have a central clearing house for fare collection operational by New Year's 2027 to ensure seamless payments under the unified system.

The ministry intends to have the clearing house in place for a New Year 2027 rollout.

— Phiphat RatchakitprakarnAnnouncing the timeline for the integrated ticketing system.
DistantNews Editorial

Originally published by Bangkok Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog