The cabinet yesterday approved a proposal to put two expressways as underlying assets for Thailand Future Fund (TFF), with the first batch of the fund expected to be filed with the Securities and Exchange Commission by the third quarter of this year.
Nathporn Chatusripitak, an adviser to the Prime Minister's Office Minister Suvit Maesincee, said the Chalong Rat Expressway (Ram Intra-At Narong) and Burapha Withi Expressway (Bang Na-Chon Buri, owned by the Expressway Authority of Thailand), will be sold as TFF units.
Mr Nathporn said 45% of future revenue from Chalong Rat Expressway and Burapha Withi Expressway, or 44.8 billion baht, will be sold to investors through TFF.
The funds raised by these assets will be used for the construction of the expressway linking Rama III Road-Dao Khanong and the Western Outer Ring Road, worth 30.4 billion baht, and the third stage of the long-delayed Northern expressway linking the Kasetsart intersection and Nawamin Road, also known as the N2 section, valued at 14.4 billion baht.
The cabinet in December approved the launch of the TFF infrastructure fund to raise liquidity from the public for the construction of state projects and to lower the fiscal burden incurred by the government's massive infrastructure plans.
Mr Nathporn said TFF was designed as an investment option for Thais when savings interest rates are low. It is also a financial instrument for the Thai government to invest in infrastructure projects and help ease the government's public debt burden.
With TFF, the government will have more room in borrowing, particularly to fund publicly beneficial projects, including hospitals, telecommunications and a safety net for retirees.
Even though public debt is still below the 60% ceiling, the government must seek other funding sources for its big-ticket infrastructure projects.
Public debt stands at 43% of GDP, meaning there is only 2.6 trillion baht left before reaching the threshold.
The government's big-ticket infrastructure projects for transport alone need a combined investment of 2.3 trillion baht.