Thailand plans to optimize the PPP mechanism and advance the bidding of transportation projects worth 140 billion Thai baht.

The State Railway of Thailand (SRT) plans to terminate the PPP contract with Asia Era One, a subsidiary of Charoen Pokphand Group, for the high-speed rail project connecting Don Mueang, Suvarnabhumi and U-Tapao three airports, which has aroused market attention to public-private partnership (PPP) projects in the future.

The Ministry of Transport stated that it will continue to promote large-scale infrastructure construction under the PPP mode, and plans to launch project bidding with a total value of about 140 billion Thai baht in 2027, including projects such as the M5 and M9 expressways, the second phase of Phuket Expressway and the Samui Island cruise terminal. The Ministry of Transport emphasized that it will learn from the experience of the three-airport high-speed rail project, improve the terms of PPP contracts, enhance the flexibility of contracts, and fully consider external risks such as the epidemic and energy prices. The Thailand Development Research Institute (TDRI) believes that PPP helps to speed up infrastructure construction, but high-speed rail projects have relatively high risks. In the future, a more reasonable cooperation mode should be designed according to the characteristics of different projects to scientifically allocate risks between the government and the private sector.

Source: Economic and Commercial Office of the Embassy of the People's Republic of China in the Kingdom of Thailand