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Published on November 19, 2007

To maximise revenue from properties at new stations and along the routes, the city plan may need to be adjusted to increase maximum saleable area, panellists at a Krungthep Turakij rail development seminar heard last week.

President and chief executive of Ananda Development, Chanond Ruangkritya, said many investors would be interested in bidding for property-development proposals if the government opted to invite them.

"The private sector is ready to raise funds for the development. Many investors have shown interest. A Dubai investor also told me so," Chanond said.

Office of Transport and Traffic Policy and Planning (OTP) director-general Maitree Srinarawat said the Thaksin administration proposed to invite private-sector bidders for property development.

Maitree and Sombat Kitjalaksana, managing director of Bangkok Metro, the operator of Thailand's first subway, were in favour of the idea, saying it would save government money.

The six lines approved by the interim government last November are expected to cost Bt165 billion. The government has so far opened bidding for part of the Red Line, from Bang Sue to Taling Chan. Bidding for the Purple Line is expected soon, but none of it allows simultaneous property development.

According to Maitree, the lines would be linked by five main sub-centres, which included huge potential for property development.

Chanond said floor-area ratios would need to be increased. Floor-area ratios put a ceiling on saleable space relative to actual land size.

He said while the ratio was 7:1 along Sukhumvit to Onnuj, the ratio from Onnuj to Soi Baring, where the Skytrain extension will run to, was only 5:1. This is unattractive for investment, he said.

"Is it possible to allow a ratio of 10:1 for all plots around train stations, regardless of zoning?" he asked.

Bangkok Metropolitan Administration (BMA) urban development planning division director Panyapat Noppun said the city plan was governed by a master law which did not allow relaxation on a case-by-case basis.

"That could be done only when we have a council which has a final say on what projects should enjoy higher privileges," she said.

She said the ratio was defined in line with infrastructure availability and that if it was not, the city would expand without limit.

She said there had been some relaxation of the ratio along Ratchadaphisek Road. Extra-large buildings are allowed, even though the area is zoned residential. As a result of the subway, the BMA plans to charge passenger cars to use the road.

Large buildings with park-and-ride services for train commuters are given a "bonus", whereby they are allowed to increase saleable space.

All the panellists were hopeful the planned rail construction would not be subject to any changes, considering the benefits of mass transit in reducing traffic, energy consumption and accidents.

The OTP estimated there were 17 million commuter trips a day within Greater Bangkok. Only 700,000 trips are made on the Skytrain and subway, while 6.5 million are on public buses and 10 million in personal vehicles.

Maitree is hopeful that once the city has a train network with a combined length of 137 kilometres within the next five years it will accommodate at least three million commuters.

"Bidding could be done for all the planned lines if the government wanted. Traffic congestion caused by construction could be reduced if the structures were built at warehouses and transferred for assembly at the sites," Maitree said.

He admitted the only bar to such massive bidding was the public demand for a transparent bidding process.

Achara Deboonme

 The Nation