The Public-Private Partnership (PPP) Policy Committee has approved an extension of the Blue Line electric train and renewal of a 30-year land rental contract for Thai Oil's refinery in Chon Buri province, a combined investment value of 204 billion baht.
The panel chaired by Deputy Prime Minister Somkid Jatusripitak yesterday agreed in principle on a joint investment with the private sector on a Blue Line extension of 27 kilometres, said Finance Minister Apisak Tantivorawong.
The Blue Line extension, which includes Hua Lamphong to Bang Khae and Bang Sue to Tha Phra, will be financed under a net cost PPP model whereby the government will be responsible for land expropriation fees and the private sector will invest in the rail system and provide operation and maintenance, Mr Apisak said.
The private sector will assume operation of the line for 30 years, he said. Project investment is estimated at 84 billion baht.
A PPP priority is installing an electric train connection for the one-kilometre gap between Tao Poon station and Bang Sue station to link the Purple Line with the Bang Sue metro station, said Mr Apisak. Ekniti Nitithanprapas, director-general of the State Enterprise Policy Office, said the work must be completed in 15 months.
The committee also agreed to renew the contract with Thai Oil to rent 1,500 rai of state land in Si Racha for another 30 years. The current contract is due to expire in five years.
The panel decided to renew the contract for energy security purposes, said Mr Apisak, adding the refiner offered a higher return than the market.
The committee instructed the Transport Ministry and the Port Authority of Thailand to reconsider a master plan in developing a 17-rai area of Bangkok port into a maritime business centre. The project will allow the private sector to jointly invest, he said.
The ministry must discuss the legal issues with the Council of State to determine if land expropriated by the state for port development can be developed for other purposes, said Mr Apisak.