PPP plan receives cabinet tweak

PPP plan receives cabinet tweak

Goal to encourage more investment

High-speed train models are displayed at an exhibition held in Bangkok. The transport system is one of the 55 projects in the government's PPP plan. PAWAT LAOPAISARNTAKSIN
High-speed train models are displayed at an exhibition held in Bangkok. The transport system is one of the 55 projects in the government's PPP plan. PAWAT LAOPAISARNTAKSIN

The cabinet on Tuesday approved an amendment to the five-year strategic plan for public-private partnerships (PPP) to make them compatible with the country's 12th National Economic and Social Development Plan (2016-2020).

Kobsak Phutrakul, assistant minister to the Prime Minister's Office, said amended joint investment under the PPP programme will be categorised into two groups: one that should allow the private sector to take part in joint investment, and another with which the government wants to promote joint investment.

The projects in which the government can form joint ventures with the private sector include city rail mass transit, toll projects for rail projects in urban cities, roads, ports and high-speed rail that require private investment. Total investment for this group is estimated to be worth 987.32 billion baht.

Projects the government wants to promote using joint investment include telecom networks, high-speed internet, intercity toll roads, large-scale convention centre development, and residential development for low-income earners, the elderly, the handicapped and the underprivileged. Total investment in the second group is estimated at 629.90 billion baht.

New investment projects under the PPP plan are slightly changed from the previous investment plan, with the number of projects cut to 55 from 65 approved for 2015-2019. But the investment values increased to 1.62 trillion baht from 1.41 trillion baht.

"The government aims to attract the private sector to play a key role in the first group," said Mr Kobsak. "If the state agencies want to invest in the projects themselves, they need to explain how to invest in the projects at a cheaper cost than the private sector."

He said the government sees joint investment in the second group as essential because it will help speed up project development and reduce the government's burden and budget constraints.

The State Enterprise Policy Office (Sepo) said recently it expected the budget approval for PPP for next year to be similar to this year's tally worth 340 billion baht.

The shorter time frame for PPP investment approvals, down to nine months from two years, has accelerated the approval rate to exceed the 47 billion baht per year as targeted in the PPP Strategic Plan, said Sepo director-general Ekniti Nitithanprapas.

The government cannot allocate its budget for all infrastructure investment projects because some funds are needed for social development and social security, said Mr Ekniti. Partnering with the private sector helps boost efficiency in investment projects, he said.

The PPP fast-track system will be adopted for projects in special economic zones to accelerate the approval process, said Mr Ekniti. These projects include a high-speed train connecting Suvarnabhumi airport, U-tapao airport, and Don Mueang airport, as well as development of Laem Chabang seaport, and development of U-tapao seaport.

For PPP projects included in fiscal 2018, Deputy Prime Minister Somkid Jatusripitak also wants to cover social development projects such as building hospitals and schools, housing for low-income earners, and purchasing medical equipment.

PPP investment terms will be applied to these projects, with private sector benefits taken into account, he said.

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