Chalerm Mahanakorn Expressway

Bangkok Expressway and Metro Public Company Limited (BEM) had reported the arbitral award that BEM filed its statement of Claim with the Thai Arbitration Institute on June 13, 2013 requiring the Expressway Authority of Thailand (EXAT) to pay the difference between the toll revenues under the Ministry of Transport’s Announcement dated August 15, 2018 and the applicable toll rates under the Agreement. On October 30, 2018, BEM was informed the arbitral award dated October 24, 2018, whereby the Arbitral Tribunal unanimously rendered its award requiring EXAT to compensate BEM for damages, which can be summarized as follows: 1) Damages, together with interest, amounting to ฿9,091.79 million, and default interest under Clause 25.6 of the Second Stage Expressway Agreement on such principal damages of ฿7,909.59 million, calculated on a daily basis from June 1, 2013 onwards until EXAT will make such payment in full. 2) Compensation for damages representing the difference of toll revenue sharing based on the toll rates under the Ministry of Transport’s Announcement dated August 15, 2008 and the toll rates which BEM entitled to receive under the Agreement, calculated by the actual number of vehicles in each category using the expressways under the Agreement, calculated on a daily basis from June 1, 2013 onwards, including default interest under Clause 25.6 of the Agreement on the difference of toll revenue sharing from June 1, 2008 onwards until the damages, together with interest, will be paid in full to BEM. Moreover, “Kaohoon Online” has done the research and saw that there were other cases that BEM filed against EXAT. According to the ruling of the Supreme Court on September 21, 2018, ordered Expressway Authority of Thailand (EXAT) to pay the compensation to Northern Expressway Company Limited (NECL), a subsidiary of Bangkok Expressway and Metro Public Company Limited (BEM) for a total of 1.84 billion baht with interest. On July 24, 2008 Bangkok Expressway Public Company Limited had requested EXAT to pay the compensation of the different in express fee from vehicle types of 2nd phase expressway, D section, according to the rate quoted in the complaint and the rate from Ministry of Transportation dated August 29, 2003 and also additional fee as requested until the requested fee would be taken into action no later than August 31, 2008, with interest. The total of this compensation was 1,048.24 million baht with interest. On June 13, 2013, Bangkok Expressway Public Company Limited had requested EXAT to pay the compensation of the different in express fee of the city and metropolitan network from vehicle types according to the rate quoted in the complaint and the rate from Ministry of Transportation dated August 15, 2003, for a total of 9,091.79 million baht. On June 28, 2013 Bangkok Expressway Public Company Limited had requested EXAT to pay the compensation of the different in express fee from vehicle types of 2nd phase expressway, D section, according to the rate quoted in the complaint and the rate from Ministry of Transportation dated August 15, 2003 for a total of 4,062.83 million baht. NECL had filed a complaint with Thailand Arbitration Center against EXAT regarding the compensation of the different of express fee adjustment in 2003 on Pakkret-Bang Pa-in expressway according to the rate quoted in the complaint and the rate from Ministry of Transportation dated August 29, 2003, for a total of 69 million baht. The total of this filing is ฿23.6 billion that could possibly be booked to BEM’s financial statement, resulting in higher profit and good sentiment of BEM’s shares. However, there are rumors going around that EXAT might seek an alternative way to pay its debt to BEM. Giving BEM a concession would be one of its way out.