New plan for ending dispute with BECL
AMORNRAT MAHITHIROOK
The Expressway and Rapid Transit Authority (ETA) board may hand over 40% of its revenue from the second-stage expressway to Bangkok Expressway Plc (BECL) after its concession contract ends, in a bid to settle multi-billion-baht disputes over suspended toll hikes, according to an ETA source.
The board chaired by Deputy Transport Minister Surachai Tharnsitthipong met on Friday to discuss the revenue-sharing arrangement proposed by an arbitration committee, said the source.
Under the proposal, the ETA would grant 40% of toll collections from the second-stage expressway to BECL for a period of eight years and 10 months after the current contracts ends in February 2020.
The ETA board expects to table the proposal to cabinet soon.
The plan is part of an attempt to settle long-standing disputes between ETA and BECL over BECL's unsuccessful bids to raise tolls on the second-stage expressway in 1998, 2003 and 2008 as allowed in the concession contract.
The company filed lawsuits against the ETA seeking compensation which has risen to tens of billions of baht as the lawsuits drag on.
BECL initially estimated damage of 78.955 billion baht _ 52.727 billion in lost revenue and the rest in interest. However, ETA estimated damage at 48.508 billion baht. The company lowered the figure to 78.350 billion baht.
However, the proposed revenue-sharing deal has raised questions as the dispute is pending in the Supreme Court which is expected to hand down a ruling this year.
The source also said the proposal had been processed in a hurry.
The ETA board set up a committee to mediate the dispute on July 25 and on Aug 11 the committee invited BECL to appoint representatives to negotiate. They met five times in August to work out a conclusion which was submitted to the ETA's board last Friday.
The source said that at the Aug 29 meeting BECL asked for an extension of the concession contract for another 30 years, 50:50 revenue sharing, and the right to boost expressway tolls every five years.
However, after negotiations the meeting agreed to hand over 40% of its revenue from the second-stage expressway operation to BECL. The source said the ETA's committee believes the proposal is in the ETA's best interest _ in case the Supreme Court rules in BECL's favour.
''But the case is not finalised yet. And if the ETA wins the case, BECL will get a windfall at the ETA's expense,'' said the source.
Another source in the ETA said the board has reviewed the matter but no agreement was reached.
Mr Surachai said he will explain the matter to the media tomorrow.
The minister said the proposal is nothing new and every ETA board has been asked to review it but no conclusion has been reached.
He also denied the matter had anything to do with the upcoming appointment of a new permanent secretary.
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