Four state-owned firms to access new fund

“The proceeds from the fund will be used to finance development of energy operations and the supply system,” he said.
The plan to establish the open-ended Vayupak II Fund has been completed and will be submitted to the Cabinet for approval next month.
In the first phase of the infrastructure fund, the Bt100-billion proceeds will be used to finance these state enterprises’ plans.
Of the total, Bt2 billion will be raised by Egat, Bt10 billion by the Metropolitan Waterworks Authority, Bt30 billion by the Port Authority of Thailand and about Bt40 billion to Bt50 billion by the Expressway Authority of Thailand.
Several projects are likely to raise money through this type of fund.
The infrastructure fund is an attractive investment option with a higher return than deposits, Prasong said. It should enjoy a low cost of funds of about 5-6 per cent due to its zero risk, while the state enterprises offering units are profitable.
The open-ended Vayupak II Fund is targeted at Bt500 billion, while the Vayupak I is about Bt325 billion.
The infrastructure fund will be open-ended to allow it to help develop the economy and investment over the long term.
Prasong also said there was no progress yet on the planned listing of Star Petroleum Refining Co on the Stock Exchange of Thailand this year. The proposal is under the consideration of one of Star Petroleum’s major shareholder, PTT.
He noted that state enterprises were expected to forward about Bt100 billion to their owner, the Finance Ministry, in fiscal 2013. This is slightly lower than the fiscal 2012 target of Bt104 billion because all state enterprises have to abide by corporate accounting standards while specialised financial institutions have to contribute 0.47 per cent of their deposits to the monetary authority. This will cost them about Bt7 billion to Bt8 billion in lost revenue.
The Securities and Exchange Commission recently joined with the Office of the Auditor-General to improve audits of SET-listed state-owned enterprises (SOEs) to ensure that they are in compliance with the international audit standards that became effective this year.
The project will be assisted by the World Bank’s experts on international audit standards, who will train Auditor-General officers and sponsor registration fees for their training courses. The training will be based on the curriculum of the Institute of Chartered Accountants in England and Wales.
The commission will coordinate with SEC-approved auditors to allow Auditor-General officers to observe their overseas branches.
This collaboration will give these officers an opportunity to exchange knowledge and experiences on audit practices while the SEC and Office of the Auditor-General will work together to strengthen the audit work of listed companies.
“Most of the listed SOEs are large organisations, accounting for 17 per cent of total market capitalisation. This collaboration will enhance confidence in the quality of financial statements of listed firms in the Thai capital market, boost market competitiveness and attract worldwide investors,” SEC secretary-general Vorapol Socatiyanurak said.