PPP projects to start in January
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THE ECONOMIC Stimulus Committee, chaired yesterday for the last time by Finance Minister Sommai Phasee, said the process for forming public-private partnerships (PPPs) for infrastructure projects, including two high-speed rail routes, would begin by Janua
Sommai will be replaced as finance minister in the new Cabinet set to be announced this week.
“The new finance minister will chair the next meeting of this committee, and what the current team has done in preparation is to put all the stimulus measures into profile for the new incoming team,” he said.
“The PPP process is expected to start in January 2016 and the process will take around 14 months to complete, before construction work can commence after February 2017,” he added.
The military government in April endorsed and unveiled a five-year strategic plan for public-private partnerships covering 65 development projects in 20 categories, worth Bt1.35 trillion in total.
PPPs are currently expected to be used for about Bt380 billion, or 20 per cent of the overall Bt1.9-trillion infrastructure spending plan.
The strategic plan will comprise mass transit in the city, expressways, ports, high-speed trains, the telecommunications network, and high-speed Internet, along with other projects in which the government wants to promote private investment, including motorways, water management, the digital economy and related industries.
The Transport Ministry is currently conducting a feasibility study to allow private investment in 10 projects of the infrastructure spending plan, including Bangkok-Chiang Mai and Bangkok-Hua Hin high-speed rail routes, along with several double-track rail and expressway projects.
Meanwhile, Sommai said the Cabinet had approved a plan to revise and extend the free bus and train travel policy, with the aim of helping lower-income earners.
The policy is being revised by the Economic Stimulus Committee, as it should be more controlled and targeted in terms of the category of passengers that benefit, he said, adding that he believed the revamped plan would help the government save around Bt200 million in expenditure on the scheme.
“The matter concerning the extension of free bus and train travel was not completed today, as it needs to be revised to make the purpose of the policy clearer. There is time, since the scheme will not expire until the end of October,” he stressed.
“I believe that once the policy is more controlled and targeted, it should be made permanent instead of having to renew it every year, as it is a good scheme to help low-income earners,” he added.
