The initial public offering (IPO) of the Thailand Future Fund (TFF), an infrastructure fund to finance transport projects, will be delayed to next year.
The TFF's IPO filing with the Securities and Exchange Commission (SEC) scheduled for this year will remain on track but the unit offering will be launched at the start of next year, Ekniti Nitithanprapas, director-general of the State Enterprise Policy Office (Sepo), said yesterday at a seminar on the 2018 economic outlook held by Bank of Ayudhya (BAY).
The delay is not expected to cause any overarching problems, as the new schedule still falls within the fund utilisation period to develop 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.
The TFF is expected to raise 44 billion baht from the general public.
Earlier, problems emerged regarding an amendment to the Expressway Authority of Thailand's revenue contract over money transfers to the infrastructure fund, for which the Expressway Authority of Thailand (Exat) labour union has filed a petition with the Supreme Administrative Court to revoke the cabinet resolution for the fund's launch.
The cabinet in May approved a proposal to use two expressways as underlying assets for the TFF. Under the proposal, 45% of future revenue from the Chalong Rat Expressway (Ram Intra-At Narong) and Burapha Withi Expressway (Bang Na-Chon Buri), owned by Exat, will be backed by TFF units.
Investor confidence has been improving, bolstered by the bull-run stock market and rising economic momentum, Mr Ekniti said.
"Even though public spending is driving economic growth, the real objective of the government's infrastructure project investment is to strengthen the country's competitiveness," he said. "Large proportions of government investment will be amortised annually, so there will not be sharp boosts in economic growth each year."
Infrastructure development will support other economic engines including private investment, foreign direct investment, exports, domestic consumption and tourism.
Separately, BAY chief economist Somprawin Manprasert said the bank revised its GDP growth forecast for the third time to 3.8% this year from 3.6% previously predicted, citing double-digit export growth in recent months.
The bank also raised its export growth forecast to 6.5% this year.
Improving private investment will also facilitate economic expansion after capacity utilisation hits a six-month high, BAY said.
For next year, the bank's research centre estimates that GDP growth will reach 3.7-3.8%.