The construction of the 36.67-billion-baht main passenger terminal and concourse started on Dec 1 and is expected to be finished in three years.

The aborted Hopewell project contrasts with plans for a nationwide dual-track system that is estimated to cost at least 214 billion baht.

Italian-Thai development with its Japanese partners, Takenaka Corp and Obayashi Corp, signed the deal with New Bangkok International Airport Co (NBIA) on Nov 9.

The terminal will be capable of handling 36 million passengers a year.

The project had been on a roller-coaster ride throughout the year, with sporadic disputes between the Thai government and the project's major financial sponsor, the Japan Bank for International Co-operation (JBIC).

The Japanese government had threatened to withdraw its financing commitments to the airport, shortly after it had frozen a one-billion-baht loan for piling work at the site. The threat came after the Thai government authorised the piling work without waiting for JBIC's approval.

The terminal project, meanwhile, had been a political football for years, with frequent squabbles over the design, which the government maintained was too costly and relied too heavily on imported materials.

The initial price had been set at 48 billion baht, but after a redesign NBIA declared a median price of 36.78 billion baht. The Italian-Thai group was the only bidder among three contenders to come in under the median price. It also said that 81% of the construction materials and labour would be sourced locally.

The JBIC has agreed to lend all the money needed for the project, at 0.75% interest.

No sooner had construction begun, however, than the airport development committee said it would ask NBIA to expand the terminal to cater for up to 43 million passengers a year. The development company would be asked to seek another six billion baht from JBIC for the expansion.

The government is also pushing to develop multi-billion-baht expressway projects to service the new airport.

One proposed project is a 4.7-km link to connect the Bang Na-Chon Buri expressway with the first- and second-stage expressways, as well as the Ram Intra-Art Narong expressway. The Expressway and Rapid Transit Authority estimated the cost of the links at 3.6 billion baht, which the Interior Ministry said was too high.

Another project under consideration is a one-kilometre ramp linking the Bang Na-Chon Buri expressway with the airport, costing one billion baht.

Meanwhile, the State Railway of Thailand is also pressing hard to develop a rail route linking Bangkok with Suvarnabhumi airport.

Prime Minister Thaksin examines a model of the Suvarnabhumi airport terminal, which will cost 36.7 billion baht.

According to a study by Pacific Consultants International, the 20-km Phaya Thai-Makkasan-Hua Mark-Suvarnabhumi rail link is a vital part of the infrastructure required to serve the airport, as well as provide a transport alternative to tackle traffic problems.

The rails would be elevated to avoid creating crossroads that could cause traffic congestion, and electric-powered trains would operate on the line.

Construction of the new rail route was expected to start early in 2002 and take two years to complete.

The elevated link would connect with the underground train system at Makkasan and the BTS skytrain network at the Phaya Thai station.

The project would be financed by the state budget and loans.

Concessions may be granted to the private sector to operate the trains and terminals, but this was up to the cabinet.

Moreover, the rail agency is pushing for cabinet consideration of a nationwide dual-track system worth more than 214 billion baht.

The system would not only improve rail safety and efficiency, but would also promote the SRT's plan to increase freight services to shore up revenues.

The SRT has been working on two double-tracking projects spanning 234 kilometres.

The first leg, 61 km from Klong Rangsit Station to Ban Phachi junction in Ayutthaya, cost 3.2 billion baht.

It was completed in October 1999 and a traffic-control system is now being installed.

The second part consists of four legs: 45 km from Hua Mark to Chachoengsao (six billion baht); 41 km linking Taling Chan and Nakhon Pathom (4.46 billion); 44 km from Ban Phachi to Map Kaboa in Sara Buri (2.39 billion); and 43 km from Ban Phachi to Lop Buri (2.05 billion baht).

Section one of the second project is due to be completed in March 2003, with the other three sections to be completed in July of 2002.

Elsewhere in mass transit, the aborted Hopewell elevated rail and road project has gone back to the drawing board.

Prime Minister Thaksin Shinawatra had earlier rejected reviving the project, which the government forecast would cost 30 billion baht in state funds.

But the government later relented and decided to consider completing the project but on a smaller scale.

The Office of the Commission for the Management of Land Traffic (OCMLT) has been assigned to hire a consultant to study investment costs and new construction patterns, and set terms for choosing contractors.

Under the Transport and Communications Ministry's revised plan, the state would use Hopewell's concrete pillars to develop a 20-km elevated railway from Bang Sue to Don Muang.

Buses remain the main mode of transport for the cash-strapped masses.

The scheme would cost between nine billion and 12 billion baht and ease traffic congestion.

The Bang Sue railway station would be developed into a new terminal to take over the northern, northeastern and southern trains from Hua Lamphong, which would service only eastern trains.

The ministry has set a deadline of Jan 31 to finalise details of the project.

Mass transit via the Bangkok Mass Transit System (BTS) skytrain has also begun to grow more popular.

It now carries an average of 250,000 commuters a day, up from 150,000 a day in 2000.

However, the total is much lower than the 400,000 projected originally, a level that would cover the company's operating costs and interest payments.

The current number of passengers generates only enough revenue to cover daily operations, including wages, electricity and maintenance.

The skytrain is currently earning between four million and five million baht a day from fares, up from three million baht a year ago.

"The number of commuters is improving. We expect passengers will reach 300,000 a day at the end of 2001 and touch 350,000 in 2002, as people are becoming familiar with commuting by skytrain," said Anant Arbhabhirama, adviser to BTS.

Extending the skytrain route, with one leg crossing the Chao Phraya River, is also expected to improve the system's potential.

The OCMLT will soon hire an advisory firm to conduct a feasibility study on the extension project.

An earlier proposal for the skytrain extension had been turned down by a state panel, which argued that it went against a cabinet decision favouring 100% private investment in any new lines.

The cabinet wanted the system extended on three fronts: three kilometres from Sathon to Phetkasem, eight kilometres from Onnuj to Samrong, and eight kilometres from Chong Nonsi to Rama III road.

But BTS wanted to take on only two routes: Sathon-Phetkasem and Onnuj-Samrong. The company had also asked the state to invest in civil construction work.

City commuters will also have to wait a little longer to ride on the country's first subway system.

The partial opening of the subway, the Hua Lamphong-Huay Khwang route, scheduled for completion late in 2002, was likely to be delayed due to the delay in signing a contract to purchase carriages and operating systems worth nearly 18 billion baht.

Under the 25-year concession contract, Bangkok Metro Co Ltd was required to have signed contracts with train suppliers by May 2001, with delivery to be made within 18 months.