Bangkok Metro

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The consortium led by Ch Karnchang Plc was awarded a concession to provide subway trains and operate a 20-km subway line in Bangkok in 1999 (fixed assets have been provided by the government). The project company will pay the government a net present value of US$ 270.6 million for the concession rights (annual installments starting from the 11th year of the 25-year concession), plus 50% of the fare revenue if the return of equity exceeds 20% (if the ROE exceeds 25%, the concessionaire will transfer 75% of the extra revenue). In addition, the sponsors will invest US$ 440 million. Financial closure was achieved in Jun. 2001 with US$ 350 million in loans from foreign banks and additional loans from local commercial banks. This funding will be directed to the acquisition of trains and electrical equipment. The subway is expected to carry 300,000 commuters per day. The opening of the subway was delayed from July 2003 until at least May 2004 due to signing disagreements. In December 2003, Developer Natural Park Plc (N-Park) acquired a 24.71% stake in Bangkok Metro Co Ltd (BMCL) for 2.51 billion baht, making it the largest shareholder in the capital's subway operator. The shares were acquired from Chantawee Menton Co Ltd at Bt150 apiece, giving it a stake that was slightly larger than that of Ch Karnchang Plc, which owned 23.09 per cent of BMCL. The investment in BMCL was financed with funds raised from an earlier capital increase and bank loans. None None