No guaranteed return on investment in pilot road project pitched on Tuesday

TUESDAY, MAY 30, 2017
No guaranteed return on investment in pilot road project pitched on Tuesday

The Finance Ministry will on Monday seek Cabinet approval for a Thailand Future Fund pilot project aimed at mobilising Bt40 billion for the Expressway Authority of Thailand.

According to a source familiar with the project, however, the ministry will not guarantee investors a return on money committed to the Future Fund. That refers to revenue generating by existing Expressway Authority assets that will be transferred to the fund.
“It is a brownfield project [developed land being upgraded or modified], so we don’t guarantee a minimum return,” said the source, speaking on condition of anonymity. An earlier report had suggested the government might guarantee a return of 7-8 per cent on investments.
“If the ministry launches greenfield projects [at undeveloped sites], we may need to guarantee a minimum return,” the source said. 
The ministry aims to raise Bt40 billion to finance the outer-ring Rama III-Dao Khanong expressway and Route 2 East-West motorway.