The Public-Private Partnership (PPP) Committee has approved to put two motorways worth a combined 142 billion baht under the fast-track PPP scheme, the first joint investment projects from the Highways Department in 20 years.
The two projects are motorways linking Ayutthaya's Bang Pa-in district with Nakhon Ratchasima province, worth 85.9 billion baht, and Nonthaburi's Bang Yai district with Kanchanaburi, worth 56.5 billion.
The PPP gross cost concession, which allows private investors to invest in and operate projects under government ownership, will be applied to the two motorways.
Deputy Prime Minister Somkid Jatusripitak said under the PPP gross cost model, the government will fund the civil work for both infrastructure projects, while private actors that win the auction will invest in operation and maintenance.
Private investors will be granted a 30-year concession to operate and maintain the projects, he said.
Under the fast-track PPP scheme, the joint investment period will be shortened to nine months from 20 months.
The private sector is expected to be allowed to submit bids for the two motorways by this year.
Mr Somkid said that the policy he delivered to the PPP committee considered the balance of the joint investment projects between cities and rural areas.
The committee should prioritise projects that should be invested in first, he said, adding that residential or energy projects should also be fast-tracked.
"Airports of Thailand and the Civil Aviation Department have investment projects, which the State Enterprise Policy Office should negotiate to bring under PPP. I want to see cooperation among the Treasury Department, the National Housing Authority and GH Bank in developing residential projects," he said.
The PPP committee has already approved six projects under the fast-track PPP scheme, worth 613 billion baht. Four are electric trains: the Purple Line between the Kanchanaphisek Outer Ring Road and Tao Pun (128 billion baht), the Orange Line's eastern and western sections (worth 221 billion), a route connecting Phuket airport and Chalong Circle (worth 31 billion), and one in Chiang Mai, the investment budget of which is under study.
The Bangkok-Rayong high-speed rail is projected to cost 152 billion baht and a motorway linking Nakhon Pathom and Cha-am in Phetchaburi is expected to cost 80 billion.