Page 222 - BTSGroup ONE REPORT 2021/22_EN

220 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l
jointly submitted the proposals under the name of “BGSR Joint Venture”
(in which they have interests of 40%, 40%, 10% and 10%, respectively)
to Department of Highways in order to invest in the operation and
maintenance of civil work and collection system of Bang Pa-In - Nakhon
Ratchasima (M6) and Bang Yai - Kanchanaburi (M81) Intercity Motorway
Projects. These projects are public-private partnership. On 29 August
2019, the selection committee established in accordance with Section 35
of the Private Investment in State Undertakings Act B.E. 2013 announced
that BGSR Joint Venture was the bidder with the highest assessment
score for both lines. On 21 July 2020, a cabinet resolution approved
the result of the selection of private companies and draft joint venture
agreements for the portion of the Intercity Motorway Projects appointing
a private company to private jointly invest in carrying out Operation and
Maintenance (O&M) for two projects. Subsequently, BGSR 6 Company
Limited and BGSR 81 Company Limited were established in order to
prepare for the signing of the agreement with the government agency.
On 29 September 2021, BGSR 6 Company Limited and BGSR 81
Company Limited, the Company have entered into the public private
partnership agreements (PPP gross cost) with the Department of
Highways to operate the Bang Pa-In - Nakhon Ratchasima intercity 2.
motorway project (M6), having a total distance of approximately 196 km,
and the Bang Yai - Kanchanaburi intercity motorway project (M81),
having a total distance of approximately 96 km. The agreements are
divided into 2 phases as follows:
Phase 1 - Design and construction of the system works including toll
plaza construction and system installation, toll collection system, traffic
management and control system, with a period of 3 years from the
commencement date as agreed in the agreements.
Phase 2 - Operation and maintenance services (O&M) including the
collection and delivery of the entire toll revenue to the Department of
Highways, repair and maintenance of the roads and system works, with
a period of 30 years.
BGSR 6 Company Limited and BGSR 81 Company Limited will receive
payments in return for the Phase 1 works on a quarterly basis for a
period of 20 years from the commencement of Phase 2 works, and for
the Phase 2 works on a quarterly basis for a period 30 years from the
commencement of Phase 2 works. The operations of both projects are
scheduled in 2024.
Currently, the projects are under the process of design and system
installation.
1.5 Coronavirus disease 2019 Pandemic
The Coronavirus disease 2019 pandemic is continuing to evolve.
It has slowed down the economic, adversely impacting most businesses
and industries. The Group’s management has continuously monitored
ongoing developments and assessed the financial impact in respect
of the valuation of assets, provisions and contingent liabilities, and
has used estimates and judgement in respect of various issues as the
situation has evolved.
Basis of preparation
2.1 The financial statements have been prepared in accordance with
Thai Financial Reporting Standards enunciated under the Accounting
Professions Act B.E. 2547 and their presentation has been made in
compliance with the stipulations of the Notification of the Department
of Business Development, issued under the Accounting Act B.E. 2543.
The financial statements in Thai language are the official statutory
financial statements of the Company. The financial statements in
English language have been translated from the Thai language
financial statements.
The financial statements have been prepared on a historical cost basis
except where otherwise disclosed in the accounting policies.