The Bangkok Mass Transit Authority (BMTA) is seeking Cabinet approval for a plan to lease 1,520 electric air-conditioned buses for a seven-year period. The project, with a budget of 15.36 billion baht, is scheduled to run from 2025 to 2032 and aims to modernize Bangkok’s public transport system by replacing conventional fuel-powered buses. The National Economic and Social Development Board (NESDB), the Ministry of Finance (MOF), and the Budget Bureau (BBP) have reviewed the proposal, with their recommendations now submitted for Cabinet consideration.
The NESDB supports the initiative, emphasizing its role in reducing fuel and maintenance costs while aligning with the BMTA’s 2023 business strategy. The agency also stressed the need for clear contractual terms, particularly regarding charging station maintenance and equipment replacement over the lease period.
The Ministry of Finance raised no objections but urged the BMTA to implement a robust risk management plan. It highlighted the project’s estimated financial return rate of 77.23%, driven by optimistic passenger projections and cost-effective procurement. The ministry advised BMTA to adjust its business plan if financial difficulties arise to ensure long-term self-sufficiency.
The Budget Bureau endorsed the project but recommended that BMTA clarify its role in relation to private competitors and establish appropriate fare structures. It also called for strict risk management measures to ensure that revenue and expenditure align with projections, ultimately minimizing dependence on government funding.
The BMTA board is set to review the proposal on February 27, 2025. If approved, it will be forwarded to the Ministry of Transport and then to the Cabinet for final approval. The bidding process is expected to follow, with the first 500 buses anticipated to be in service by late 2025 and full deployment by 2026
