PPP puts six more projects on fast track

The Public-Private Partnership (PPP) Committee has agreed to put six additional big infrastructure projects worth more than 600 billion baht under the fast-track PPP scheme.

The pre-investment period — including drafting the terms of reference and the auction — for the fast-track PPP projects will be cut to nine months from the 20 months it usually takes for the joint investment process, Deputy Prime Minister Somkid Jatusripitak said after chairing the meeting.

The six projects comprise three electric train routes, two high-speed train routes and a motorway.

The three electric trains are the Purple Line between Kanchanaphisek Outer Ring Road and Tao Pun, expected to cost 131 billion baht, the Orange Line’s eastern and western sections worth 196 billion and a route connecting Phuket airport and Chalong Circle worth 39.4 billion.

The Bangkok-Rayong high-speed railway is projected to cost 152 billion baht while the Bangkok-Chiang Mai high-speed railway has its investment budget under study. A motorway linking Nakhon Pathom and Cha-am in Phetchaburi is expected to cost 80 billion.

The government is stepping up efforts to accelerate big-ticket infrastructure investment to boost economic growth and trigger crowding in of private investment. One method is streamlining the joint investment process between public and private sectors.

The committee also outlined the progress of five fast-track PPP developments, worth 500 billion baht.

Mr Somkid said the Yellow and Pink Line mass transit projects are expected to seek cabinet approval by mid-April, while the Blue Line extension contract is scheduled to be signed tomorrow.

The 34.5-kilometre Pink Line, costing of 53.5 billion baht, will stretch from Nonthaburi’s Khae Rai district to Bangkok’s Min Buri district. The 30.4km Yellow Line valued at 51.9 billion baht will link Bangkok’s Lat Phrao district and Samut Prakan’s Samrong district.

He said the cabinet has given the nod to a draft framework of new terms of reference for six double-track railway projects and it is expected to be completed by June.

Apart from accelerating public investment, the government is considering ways to amend some laws in an effort to raise Thailand’s ranking in the World Bank’s Ease of Doing Business report to the top 30, from 46th, to attract more investment. The amendments are expected to be finalised in the next two days, said Mr Somkid.

Ekniti Nitithanprapas, director-general of the State Enterprise Policy Office, said the office is reviewing amendments to the PPP law to help investment in infrastructure projects and cut the PPP approval period to under nine months. The Finance Ministry is expected to propose a draft amendment to the cabinet by the second quarter.