Mon Aug 5, 8:38 AM ET By VIJAY JOSHI, Associated Press Writer

BANGKOK, Thailand (AP) - Bangkok's Skytrain, an efficient elevated train service in this traffic-clogged city, is doomed unless its creditors agree to a debt restructuring plan that includes writing off massive accrued interest, an official said Monday.

The private company that operates the two-line system, Bangkok Mass Transit System or BTS, owes about 35 billion baht ($854 million) to its Thai and international creditors, including $580 million in U.S. dollar-denominated loans.

BTS is optimistic about concluding a debt restructuring plan by the end of this year, but hard negotiations are needed, a company official told The Associated Press on condition of anonymity.

The first meeting between the lenders and BTS in three months is scheduled for Friday, the official said. Major creditors of BTS include the German development bank KfW, the International Finance Corp. and Siam Commercial Bank.

The official said BTS envisages a restructuring plan that includes writing off 5 billion baht ($122 million) accrued interest and 25-year repayment on the principal at an interest lower than the minimum lending rate.

BTS also wants at least 35 percent of the debt to be converted into equity and conversion of the U.S. dollar loan into baht.

"If they don't agree to these terms, this project cannot survive," said the official.

When it was launched on Dec. 5, 1999, the $1.5 billion mass transit system was heralded as a savior of commuters seeking to escape smoky gridlocks that can last hours in Bangkok.

But expensive tickets and limited reach have kept commuters away, with the company posting losses of 2 billion baht ($48.7 million) in the financial year ending March 2002.

Its revenue in the financial year was 1.779 billion baht ($43 million), not including exchange rate gains — just enough to repay the interest.

Average daily ridership has increased from 161,102 in December 2000 to about 278,000 now, far below the projected 500,000. The company, the only private commuter system in Asia, needs 650,000 passengers a day to make profits.

The number is not expected to go beyond 300,000 this year because of the high ticket prices amid a depressed economy, said the official.

Anat Arbhabhiroma, a company adviser, acknowledged at a news conference last year that commuters would rather take the bus or suffer in the traffic in this city of 10 million than take the comfortable and fast Skytrain.

Fares run 10 to 45 baht (25 cents to $1.10) compared to 5 baht (12 cents) on a bus.

The official said BTS also wants the government to extend its concession from the present 30 years to 50 years so that it can make money after its debt repayment.

tja, so läufts, wenn sich der Staat überhaupt nicht mehr an einem Teil des Transportwesens beteiligt. Am Anfang habe ich, als überzeugter Töff-Fahrer in BKK (Bankgkok-Rider) noch ein bisschen gegen den Sky-train geschnödet, aber nach der ersten Benutzung musste ich zugeben, dass dies für die Stadt und die Touristen eine echte Bereicherung und zeitliche Einsparnis war. Wäre sehr schade und für den sonst schon geplagten Verkehr in BKK katastrophal, wenn die Benutzer wieder auf die Strasse, in die Busse, Taxis, Tuk-Tuks und anderes Zeugs gepfercht würden. Auch eine Meinung dazu???