BANGKOK, 25 August 2011 -The State Railway of Thailand (SRT) will enter a negotiation with the Bangkok Metropolitan Administration (BMA) for the return of Chatuchak Weekend Market unless the BMA increases the rent.
According to Permanent Secretary for Transport Mr. Supoj Saplom, the SRT demanded that the BMA agree to the rental rates of 420-445 million THB per annum. The BMA is expected to give the answer to the SRT by the end of October. It is said that once the contract between the SRT and the BMA expires, the SRT will step in and take over the weekend market.
Since both sides of the contract are the government agencies, the rent of 420 million THB is the minimum rate per year determined by related agencies. The BMA, however; proposed the rate of 140 million THB which the SRT said was too low.
Mr. Supoj said if SRT could earn up to 12 billion THB from the weekend market if this area was developed to its full commercial service. And when the SRT has a full control of Chatuchak, it could be making as much as 1.1 billion THB per year.
Meanwhile, Mr. Supoj added that the SRT was now gearing up to take a full control and making sure that once the contract expires, it won’t have an impact on tenants. Business owners who are paying rents directly to the BMA will receive a discount rate of 20-30% once the SRT management steps in next year.