Reports said the Mass Rapid Transit Authority (MRTA) of Thailand has appealed to the Japanese Bank for International Co-operation (JBIC) to continue supporting subway projects even though Bangkok Metro Company did not pick a Japanese bid to supply the Thai capital’s subway train system.
JBIC has provided US$1.19bn in low interest loans to the MRTA in order to finance the construction of 22km of tunnels and 18 stations, which is over 90% complete.
Earlier this year, Bangkok Metro agreed a deal worth US$430M with German firm Siemens Transportation Systems for mechanical and electrical supplies associated with the train system. The Nippon-Euro Subway Consortium, which is made up of French firm Alstom as well as Mitsubishi Electric Corporation and Mitsubishi Corporation of Japan, was said to be disappointed as it had originally won the bid in 2000 by submitting the lowest price for supply of 30 trains.
A revision of predicted ridership figures from 400,000 to 240,000 per day, led to the tender being reduced to only 19 trains. This was subsequently awarded to Siemens, due to its stated ability to supply the trains five months earlier than the Franco-Japanese consortium. The deal also included the supply of the complete infrastructure such as signalling, power supply, communications and depot equipment, as well as project management and maintenance of the system for ten years.
Bangkok Metro has a 25 year concession from the Thai government to operate an initial 20km of subway network. If approved by the Thai cabinet, a 14km extension consisting of subway and elevated routes is due to come out to tender next year and the MRTA are said to require JBIC support for the extension project.
Although MRTA cannot influence Bangkok Metro or financiers to favour a Japanese firm in order to avoid disappointing JBIC decision makers, the MRTA board does have to approve the decision and is free to overturn it if problems are discovered.
