Page 219 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited
Annual Report 2021/22
b) The provision of operation and maintenance services for the extension
to the Core BTS Sky Train System under the Operation and Maintenance
for Bangkok Mass Transit System Agreement dated 3 May 2012 made
with Krungthep Thanakom Company Limited (“Krungthep
Thanakom”) (established by the Bangkok Metropolitan Authority) and
the amendment to the agreement, for 30 years from 8 May 2012
to 2 May 2042. BTSC has received the consideration as stipulated
in the agreement, throughout the concession period.
e) On 11 April 2019, the National Council for Peace and Order issued
c) The provision of operation and maintenance services for the Green
Line under the Operating and Maintenance Agreement for the Green
Line (Mochit - Sapanmai - Kukot and Bearing - Sumutprakan) dated
1 August 2016 made with Krungthep Thanakom and the amendment
to the agreement, for 26 years from 1 August 2016 to 2 May 2042.
BTSC has received the consideration as stipulated in the agreement,
throughout the concession period.
d) The provision of purchase and installation of operating system (electric
and mechanic) agreement and additional agreements related to the
Green Line (Mochit-Saphanmai-Kukot and Bearing-Samutprakan)
with Krungthep Thanakom Company Limited (“Krungthep Thanakom”)
and BTSC. BTSC will receive fixed payments as stipulated in the
agreements. Moreover, the agreement stipulates that Krungthep
Thanakom has an option to make payment within a 4-year period
after payment is due (or the extended period to transfer title of the
asset) and can extend this period to another 2 years, with interest
to be charged at the rate stipulated in the agreement as from
the date the option is exercised, while BTSC is to transfer legal
title of the assets as stipulated in the Purchase and Installation of
Operating System Agreement by 30 June 2020. However, BTSC
6.4 Notes to Consolidated Financial Statements 217
and Krungthep Thanakom have entered into an amendment to the
agreement, postponing the asset transfer date to 8 March 2021
and subsequently re-postponing to 28 May 2021, which has been
approved by Krungthep Thanakom Krungtep Thanakom exercised
the option to extend the payment period for 2 years and interest to
be charged at the rate stipulated in the agreement as from the date
the legal title of the assets is transferred.
order No. 3/2019 regarding the operation of the Green Line. Currently,
the management of mass transit system for Mochit-On nut and Saphan
Taksin - National Stadium (“Core Line”), Krung Thon Buri - Bang Wah
and Bang Chak - Bearing (“First Extension Line”), Ha Yaek Lat Phrao
- Khu Khot and Samrong - Kheha (“Second Extension Line”) still lacks
integration in management and unity of relating contracts. A plan is
therefore required to resolve these issues, to ensure that all sections
are operating in a systematic manner (Through Operation), that public
transit services are convenient, and that fares are appropriately and
fairly determined, in order to avoid creating a financial burden for
the public. The aim is to provide equitable and accessible mass transit
services that benefit the public good and increase the efficiency of the
country’s transportation and economic systems. The order requires
the Ministry of Interior to set up a committee to establish criteria
for sharing train-fare benefits and other criteria for a combination of
the Green Line and its extensions. The committee is to negotiate
the criteria with BTSC within the period stipulated in the order. Currently,
BTSC has prepared a draft amendment of the concession agreement
for the operation of Green Line, whereby BTSC will be responsible for
specified obligations and bear the long-term operating risk in
exchange of claiming outstanding debts from the government authority.