The Company has been granted concessions for construction and operation of the expressways, namely, (1) the Si Rat Expressway (Second Stage Expressway) under the Second Stage Expressway Agreement with the Expressway Authority of Thailand (“EXAT”) for a concession period of 30 years from March 1, 1990, and the Extension of the Second Stage Expressway System, Sector D, under the Agreement for the Extension of the Second Stage Expressway System, Sector D, with EXAT for a period of 30 years from April 17, 1997; (2) the Si Rat - Outer Ring Road Expressway under the Concession Agreement for Investment, Design, Construction, Operation, Service and Maintenance of the Si Rat - Outer Ring Road Expressway Project, with EXAT for a concession period of 30 years from December 15, 2012; and (3) the Udon Ratthaya Expressway (Bang Pa-in - Pak Kret Expressway), operated by a subsidiary, namely, Northern Bangkok Expressway Company Limited (“NECL”) under the Bang Pa-in - Pak Kret Expressway Agreement with EXAT for a period of 30 years from September 27, 1996.
The Company has been granted concessions for two mass rapid transit rail system projects from the Mass Rapid Transit Authority of Thailand (“MRTA”), namely, (1) the M.R.T. Chaloem Ratchamongkhon Line (Blue Line) (Hua Lamphong Station - Bang Sue Station) (“MRT Blue Line Project”), whereby the Company has the exclusive right to collect fare box revenue and undertake activities and commercial development, including advertising, leasing space and telecommunications services in the metro stations and in the trains for a period of 25 years from July 2, 2004; and (2) the MRT Purple Line Project, Bang Yai - Rat Burana, Bang Yai - Bang Sue Section (Khlong Bang Phai Station – Tao Poon Station) (“MRT Purple Line Project”), Contract 4: Concession for Supply of M&E Systems and O&M Services, whereby MRTA invests in all civil works and the Company invests in the M&E Systems and the rolling stocks, as well as provides the operation and maintenance services in accordance with the specified service standards, whereby MRTA is entitled to all fare box revenue and commercial development revenue from the utilization of the civil infrastructure and the railway systems and MRTA shall make repayment to the Company in the form of service fee for the O&M Services and the M&E Systems throughout the concession period of 30 years from the date of execution of the Agreement.
In addition, the Company has been selected to operate the MRT Purple Line Project, Bang Yai - Rat Burana, Bang Yai - Bang Sue Section (Tao Poon Station - Bang Sue Station, excluding stations), Contract 5: Concession for Investment, Supply of M&E Systems and O&M Services under the resolution of the Council of Ministers on October 28, 2014, implemented under Section 16 of the Act on Private Participation in State Undertaking B.E. 2535 (1992) (“Private Participation Act”) by negotiating directly with the Company (formerly, BMCL), whereby the Company shall have the duties to design, supply, install and test the operation of the M&E Equipment and other relevant systems, and trial run for the public service to the extent of commencement of the train operation service in connection with the MRT Blue Line Project within the specified time, as well as providing all financing for operation of Phase 1 of the Concession Agreement, Contract 5, which shall complete the works under the scope of Works in Phase 1 within 15 months, and under the scope of Works in Phase 2, O&M Services for a period of 12 months from the commencement date of train operation service for the MRT Purple Line Project under the Concession Agreement, Contract 5. At present, the draft Concession Agreement, Contract 5, is in the process of consideration and review of the contract term for further seeking approval of the Council of Ministers.
Commercial Development Business
The Company and one of its subsidiaries, namely, Bangkok Metro Networks Limited (“BMN”), operate the commercial development business of the MRT Blue Line Project for 1) procurement and/or production of advertising media of various forms in the trains and metro stations; 2) lease of retail spaces in the MRT Blue Line stations and spaces in the basement level of the Lat Phrao park and ride facility; and 3) provision of service and maintenance of telecommunications system equipment inside the metro stations. In addition, as for the expressways, the Company and another subsidiary, namely, NECL, allowed private entities and individuals to take on lease of spaces for commercial operation for installation of Intelligent Traffic Signs and various advertising boards, including retail spaces around toll plazas, and other business activities, such as, the use of the expressway areas for installation of 3G signal boosters, etc.
Investment in Other Companies
The Company invests in the companies operating the public utility businesses, as follows: (1) CK Power Public Company Limited (“CKP”) operates its core business by holding shares in other companies (Holding Company) operating the business of production and distribution of energy of various types; (2) TTW Public Company Limited (“TTW”) operates the business of production and distribution of tap water to the Provincial Waterworks Authority and invests in companies which operate the business of other public utilities; and (3) Xayaburi Power Company Limited (“XPCL”) operates the main business for construction and operation of the Xayaburi Hydroelectric Power Project, located on the Mekong River, for the installed capacity of 1,285 MW.