Reformation of PPP laws in Thailand


To encourage private investment , new PPP bills are introduced in Thailand.






New laws governing public-private partnerships will elucidate guidelines and assist investment in public infrastructure for the private sector, says Kulit Sombatsiri, director-general of the State Enterprise. The government is ready to put in 1.35 trillion baht in public infrastructure over the next five years in PPP modes. 


The five-year plan will be submitted to the cabinet for approval shortly. It appeals for 65 investment projects in 20 categories.

This year investment will be started. The State Railway of Thailand will initiate for the project, an extension of the light-rail Blue Line.


According to Mr Kulit, a number of models could be launched under public-private partnerships (PPPs). For instance, rail investments may be based on either a gross cost or a net cost basis. 


Mr Kulit clarified that for routes that open before full accomplishment, a gross cost basis might be the best model for private operators, as revenue streams were undefined. 


But once the network is finish and fully integrated, a net cost PPP model would be best, where income is clearly divided between the state and the private operator.