More public-private projects in pipeline in Thailand

Construction News

More public-private projects in pipeline in Thailand

Combined value of B100bn proposed

Eight government investment projects worth a combined 100 billion baht will be developed this year under public-private partnerships (PPP), says Tibordee Wattanakul, director-general of the State Enterprise Policy Office (Sepo).

He said Sepo is preparing to propose eight additional public-private joint venture projects for approval by the PPP committee.

There are currently 127 projects in the pipeline worth a combined 1.16 trillion baht.

Mr Tibordee said more PPP projects are expected in the future requiring investment from the private sector because of limited fiscal budget, such as the Land Bridge megaproject.

The funding sources for government investment projects could be the state budget, government loans or investment from the private sector under a PPP arrangement.

Government investment projects play a crucial role in driving economic expansion as every 100 billion baht worth of investment propels GDP expansion by 0.3%, he said.

The 127 PPP projects under the 2020-27 plan comprise 93 new projects worth 311 billion baht, 20 high-priority projects worth 629 billion, and 14 regular projects worth 226 billion.

There are 16 rail infrastructure projects worth 579 billion baht, 26 air transport projects worth 470 billion and 22 road transport projects worth 327 billion.

The state investment budget for fiscal 2024 is 200 billion baht, with Sepo setting a 95% disbursement target.

The government’s public debt burden increased following the emergence of the pandemic, causing the government to issue an emergency loan decree worth 1.5 trillion baht to alleviate the economic impact.

As a result, the government’s public debt-to-GDP ratio exceeded the 60% ceiling.

As of November 2023, the public debt-to-GDP ratio was 61.9%, causing the government to increase the ceiling to 70% of GDP.