PPPs will fund 20% of new infrastructure projects in Thailand

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PPPs will fund 20% of new infrastructure projects in Thailand

According to the Thai State Enterprise Policy Office (Sepo) about 20% of the 2.4 trillion baht worth of planned infrastructure projects are expected to be financed by the private sector and retail investors.

The infrastructure plan was approved by the National Council for Peace and Order in early August. The plan involves rail, water, air transport and highway public-private partnership (PPP) projects. The eight-year plan will start in 2015.

To achieve this goal the Thai Finance Ministry issued the new public-private partnership Act that took effect in 2013. Additionally, it plans to launch eight ministerial regulations. The act established the details about the procurement process to select preferred bidders for the future PPP projects. It also defines the schedule of the processes.

A national PPP committee will be established as required by the new law. In this committee the SEPO will act as the PPP secretariat and the finance minister will act as vice-chairman. This committee will have to approve projects worth 1 billion baht or more and will have to plan investment.

While fnding from private sources will be used for construction cost, national budget will be used for design and expropriation costs.

The Electricity Generating Authority of Thailand, the Port Authority of Thailand and Airports of Thailand Plc are also considering use funding from the private sector.

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