Bangkok is planning to transferring ownership of the Green Line BTS Skytrain to the central government to streamline rail management, reduce the financial burden and free up funding for other public services.
Bangkok Governor Chadchart Sittipunt said yesterday, August 3, that the Cabinet approved the Green Line transfer in principle about two months ago.
The proposal would shift ownership of the project’s assets and liabilities from the Bangkok Metropolitan Administration’s (BMA) to the government, allowing the national administration to oversee the rail network more efficiently.
According to Chadchart, the transfer is expected to support a unified transport system through integrated ticketing, coordinated fare policies and improved connections with other rail lines.
Following the discussion with the Bangkok Metropolitan Council on the 2027 budget, the BMA continues to shoulder about 6 billion baht in costs related to Green Line extension operations, maintenance and loan interest payments.
He said those obligations leave the city with approximately 86.956 billion baht for other public administration and development projects, making prudent budgeting and fiscal discipline increasingly important.
Chadchart said transferring the project would ease the city’s long-term financial commitments and allow more funding to be directed towards services that benefit Bangkok residents.
The governor added that Bangkok Mass Transit System Public Company Limited (BTSC), which operates the Green Line, is not expected to be affected because the operating agreement would remain unchanged. Only ownership of the project would transfer from the BMA to the government.
One of the main issues still under negotiation is the project’s book value, which will determine how much compensation the government would pay the BMA for the transfer.
Chadchart said the valuation must take into account the city’s previous investments, including construction costs, rolling stock procurement and some operating expenses.
The proposal must also receive approval from the Bangkok Metropolitan Council because it involves the transfer of high-value state assets.
Regarding outstanding construction costs and unpaid debt, Chadchart said these liabilities could be incorporated into the project’s book value and offset against the value of the transferred assets.
Officials must also consider the project’s future revenue. Under the current arrangement, the BMA is entitled to receive all income generated by the Green Line after 2029. The value of those future earnings will therefore form part of negotiations between the city and the government.
Talks are also continuing on how the Green Line will be managed under the Public-Private Partnership (PPP) Act after 2029.
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