The Finance Ministry has created a checklist for investment projects under the publicprivate
partnership (PPP) programme as a way to get projects to start in nine months, says Ekniti
Nitithanprapas, directorgeneral of the State Enterprise Policy Office (Sepo).
Mr Ekniti said even with the Public Private Partnership Act amendments in 2013 shortening the
approval time for PPPs to two years from over 10 years, this is still too long. The Sepo's new scheme
aims to whittle that down to nine months.
The PPP law was created in 1992 to allow companies to invest in public projects, reducing
government borrowing in order to control public debt.
But the old act failed to increase public investment because of the lengthy project approval process,
unclear wording in the law itself and lack of specific state agency responsible for guidance.
The checklist has a clearer definition of PPP projects, mandates Sepo as the body responsible for
drafting PPP project guidelines, and shortens the approval time to eightandahalf months, aiming to
boost privatesector confidence in PPPs.
A separate checklist will be developed for each PPP project, such as dualgauge rail development
requiring the Public Debt Management Office, the National Economic and Social Development Board
and the Transport Ministry to get involved. These agencies will receive a checklist the day after the
project is approved.
"For example, a Transport Ministry project skipped an essential 'market sounding' process
unintentionally, requiring it to redo the whole process again, taking several months. If we have a
checklist, we won't miss essential items, which could cut a lot of that time," said Mr Ekniti.
There are 66 PPP projects under the government's fiveyear investment plan ending in 2019 worth 1.4
trillion baht. Six of the total worth 350 billion baht can be developed first, he said.
Two have already submitted their projects details to Sepo for approval: the Pink Line elevated train
from Khae Rai to Min Buri worth 56.7 billion baht and the Yellow Line from Lat Phrao to Samrong
valued at 54.7 billion baht.
The other four projects are under consideration before they will submit for Sepo approval: the Blue
Line, a biogas renewable power plant, a new motorway route and a maritime business centre at the
Port Authority of Thailand.
"We are confident the first project using our checklist will be ready for cabinet approval by midyear,"
said Mr Ekniti.
The Pink and Yellow lines are likely to allow companies to fund the whole project, with the
government repaying the investment capital later, he said.
PPP investment may incur higher financial costs than government borrowing, but the opportunity cost
for the government to spend funds on other projects and higher efficiency of private management
must be considered, said Mr Ekniti.