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Thailand Infrastructure News

Issue 1015 February 2019

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PwC Thailand l February 2019 2

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Headlines

CP GROUP, GOVT CONTINUE TALKS ON RAIL-LINK PROJECT

Somkid says key projects on course

EEC investment set to exceed forecast

PTT budgets B450bn for 2019 expansion

Bang Saray new destination on EEC

3PwC Thailand l February 2019

Headlines

NESDC: Infrastructure investment booms

IEAT optimistic on EEC industrial estate sales

BSR still in running for fast rail project

Rail agency's electric dreams

Agency OKs final Orange Line rail


Headlines

Somkid hastens mega-projects

PPP Act restricts scope to basic projects

Rail overseer gets NLA nod

Completion of bids for Thai-China rail project expected in March


CP GROUP, GOVT CONTINUE TALKS ON RAIL-LINK PROJECT01 February 2019

6

State agencies and the Charoen Pokphand Group are continuing their negotiation on the high-speed railway project which will link up Thailand's three main international airports, said KanitSangsubhan, secretary general of the Eastern Economic Corridor Office.

The mega project requires negotiations in details. The CP Group has over 100 conditions up for discussions with the government, he said.

So far, most of negotiations have centred on land and land transfers.

For example, work at Makkasan station could start when transfer is made on 50 per cent of the land required.

When asked whether the other group will be called if negotiations with CP Group failed, Kanit said the negotiations is still on-going and is expected to conclude this month.

Source: THE NATION

http://www.nationmultimedia.com/detail/Economy/30363313

PwC Thailand l February 2019


Osaka: Deputy Prime Minister Somkid Jatusripitak reaffirmed Thursday to 500 Japanese investors that the development projects initiated by this government will continue, saying it's unlikely that any political parties wouldbe foolish enough to discontinue projects which are vital to the country's future economic growth.

In his keynote speech at a seminar organised by the Board of Investment in Osaka, he reiterated his confidence that the significant policies initiated by this government, such as the Thailand 4.0 initiative, the EasternEconomic Corridor (EEC) and Southern Economic Corridor, will be carried out.

Mr Somkid said the EEC was instrumental in drawing foreign investment to reach 680 billion baht in 2018, up from 290 billion in 2017, with Japanese investment in the EEC making up 44 billion baht. Japan is the largestforeign investor in Thailand, with total investment of US$2.2 billion in 2018. Japan is also the second-largest trading partner of Thailand, with two-way trade amounting to $60 billion. Some 1.66 million Japanese touristsvisited Thailand last year, while Thai tourists to Japan totalled 1.13 million.

"I am quite confident that those significant policies will not at all get stalled, as they are instrumental in propelling Thai economic growth in the future," Mr Somkid said. "No political party is likely to be a fool to interrupt theirdevelopment."

According to Mr Somkid, the government has established the foundation for development under the national 20-year strategic plan and the law has already been issued to make sure that the EEC project will beimplemented by the next government. He said the government has laid down the cooperation framework for the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy and the Greater Mekong Subregion, aswell as the Mekong-Japan strategic partnership.

Thailand plays an active role supporting the Japan-initiated Free and Open Indo-Pacific Strategy under which the two nations will develop infrastructure and connectivity such as the high-speed train linking Bangkok andChiang Mai and the high-speed train in the East-West Economic Corridor. Thailand has also pledged to join Japan in settling the Regional Comprehensive Economic Partnership this year.

"I believe the general election will pave the way for Thailand 's stability in all dimensions, be it politics, economics, trade and investment, which can create more confidence among foreign investors," Mr Somkid said.

Source: Bangkok Post

https://www.bangkokpost.com/business/news/1621530/somkid-says-key-projects-on-course

Somkid says key projects on courseDeputy PM assures Japanese investors01 February 2019


https://www.bangkokpost.com/business/news/1621530/somkid-says-key-projects-on-course

XOSAKA: Thailand's investment is expected to grow by 10% in 2020, largely driven by outlays to the government's flagship Eastern Economic Corridor (EEC). Kanit Sangsubhan, secretary-general of the EEC Office, saidinvestment in the corridor is expected to become vibrant in 2020, with the growth rate likely far higher than projections by state agencies. The National Economic and Social Development Council, formerly the NationalEconomic and Social Development Board, forecasts the country's overall investment to grow 5.1% this year, higher than the 4.5% growth forecast by the Bank of Thailand, up from an estimated 3.6% in 2018 and 0.9% in2017. Mr Kanit said 2020 investment growth will largely stem from five key infrastructure projects in the EEC, which is expected to begin operation by the middle of this year. The five projects are a high-speed railwaylinking three airports (225 billion baht); U-tapao aviation city (290 billion); a maintenance, repair and overhaul (MRO) centre (10.6 billion); the third phase of Laem Chabang seaport (114 billion); and the third phase of MapTa Phut seaport (55.4 billion). Mr Kanit said those five main projects in the EEC will move forward as planned, with the winning bidders expected to become available before April. The Board of Investment (BoI) reportedlast month that applications filed for promotional privileges amounted to 902 billion baht for 2018, 43% higher than in the previous year. Some 84% of the applications were in the government's targeted industries,including digital healthcare, petrochemical and robotics, with a total value of 758 billion baht. Applications in new S-curve industries such as digital, medical, petrochemical, robotics and space totalled 539 billion baht, whilethose in the first S-curve grouping fetched 219 billion, mostly in the farming/bioeconomy, smart electronics, smart automotive, tourism and food industries. Applications in the EEC dipped slightly from 436 projects in 2017to 422 projects in 2018, but the total investment for the applications rose to 684 billion baht from 288 billion in 2017. Mr Kanit said the EEC project is instrumental in driving economic growth this year and next and will helpoffset the negative impact of the ongoing trade row between the US and China.

"The trade war will definitely slow world economic growth," he said. "However, the EEC project helps offset such impact.“ He said tourism in the EEC is also expected to help contribute to the economy in the long term,with the number of tourists expected to double to 51.3 million by 2037. Many investors from Japan, China and the EU are keen on expanding their investment in the EEC, with 24 French companies having recently visitedthe region to witness the EEC development plan and eyeing investment in the smart city, defence industry and human resource development.

Mr Kanit assured Japanese investors that the EEC will continue after the March 24 general election because the corridor's development is legally bound by the EEC law, which requires the next government to carry outEEC development. He said a study to expand the EEC project to cover additional provinces such as Samut Prakan, Sa Kaeo, Prachin Buri, Chanthaburi and Trat, in addition to the existing three eastern provinces ofChachoengsao, Chon Buri and Rayong, is likely to conclude by mid-year.


https://www.bangkokpost.com/business/news/1623142/eec-investment-set-to-exceed-forecast

EEC investment set to exceed forecast04February 2019


https://www.bangkokpost.com/business/news/1623142/eec-investment-set-to-exceed-forecast

PTT Plc, the national oil and gas conglomerate, together with five subsidiaries is allocating a 2019 budget for all business expansion worth a combined 450 billion baht.Most of the budget will be spend on thegovernment's Eastern Economic Corridor scheme in three provinces (Chachoengsao, Chon Buri and Rayong) where the group operates petrochemical and utility businesses.President and chief executive ChansinTreenuchagron said PTT itself will spend 130 billion baht in 2019, including the fifth phase of an onshore gas pipeline, the second phase of a liquefied natural gas (LNG) receiving terminal and an oil retailer unit.Thereceiving terminal is in Nong Fab, Rayong province and has a capacity of 11.5 million tonnes a year.Mr Chansin said all PTT business plans are based on an estimate of crude oil prices averaging US$60 a barrel, downfrom $69 in 2018.The oil and gas drilling firm, PTT Exploration and Production Plc (PTTEP), is assigned 60 billion baht, mainly for drilling in existing oil and gas blocks in Thailand, Myanmar, Malaysia andAustralia.PTTEP also has two new petroleum blocks in the United Arab Emirates.Phongsthorn Thavisin, PTTEP's chief executive, said the firm plans to expand its oil and gas reserves from five to seven years, equal tothe current proven reserve volume of 670 million barrels of oil equivalent."PTTEP is in a transformation period of the business concept, refocusing on Southeast Asia and the Middle East instead of covering all regions inthe world," Mr Phongsthorn said. "It plans to add value to existing assets from upstream oil to power generation."PTT's largest budget in 2019 is for the well-known takeover deal between its power business, Global PowerSynergy Plc (GPSC), and Glow Energy Plc.The takeover deal was previously worth 139 billion baht but was rejected by the Energy Regulatory Commission (ERC) at first.The ERC finally approved a deal in lateDecember in which Glow will sell its power plant in Rayong to a third party before the takeover can take place.Chawalit Tippawanich, GPSC's president and chief executive, said the deal is expected to conclude in the firsthalf of 2019 after Glow sells the SPP1 power plant in Map Ta Phut. "The delay will not impact Glow's parent firm, Engie, which wants to shift its fossil-fired power generation to renewable resources," Mr Chawalit said.ThaiOil Plc, a refiner under PTT, will start construction of the Clean Fuel Project (CFP) in Sri Racha, Chon Buri in 2019. The CFP is designed to complement Thai Oil's existing oil refinery and utility units and is set fordevelopment during 2019-22 at a total cost of $4.73 billion. Capacity for oil refining will increase by 45% to 400,000 barrels a day, up from 275,000 barrels a day at present. The new crude oil output of CFP will come witha higher grade, and all types of refined oil will cost more because the new environmental standard of marine oil aims for a lower sulphur content of 0.5% in January 2020, down from 3.5% now. A petrochemical business,PTT Global Chemical Plc, will invest 50 billion baht in 2019 for its ongoing project of performance upgrades and specialty petrochemical products such as propylene oxide and ethylene oxide. SupattanapongPunmeechaow, PTTGC's president and chief executive, said the massive new investment in petrochemical production facilities will see significant results in 2020, as the biggest investment is set for 2019. "PTTGCbelieves that the tension of the US-China trade war will ease up this year and demand for petrochemical and oil products will resume its high growth," Mr Supattanapong said. IRPC Plc, another petrochemical maker, willspend 30 billion baht in 2019 for the Maximum Aromatics project, a naphtha-reforming and aromatics complex. The complex will be built at the existing integrated petrochemical complex in Rayong province. The complexwill increase production capacity to 1.2 million tonnes of paraxylene (PX) a year, up from 1 million, and 495,000 tonnes of benzene, up from 114,000. PX is a component of polyesters, and benzene is a key additive ofpetrol. PTT shares closed Friday on the Stock Exchange of Thailand at 49.50 baht, up one baht, in trade worth 2.24 billion baht.


https://www.bangkokpost.com/business/news/1623082/ptt-budgets-b450bn-for-2019-expansion

PTT budgets B450bn for 2019 expansionGroup, 5 subsidiaries to splash on upgrades04 February 2019


https://www.bangkokpost.com/business/news/1623082/ptt-budgets-b450bn-for-2019-expansion

Pattaya has been a focal point for development historically. In the past decade, the resort town's more popular areas such as Wong Amat, Phra Tamnak, Jomtien and Na Jomtien were developed heavily for thecondominium market. With limited beachfront land along these beaches, leading developers are looking further down the coastline in areas between Bang Saray and Sattahip.The shift in development to the southcoincides with the government's plans to develop the Eastern Economic Corridor (EEC), which further increases the opportunity for the area's potential for future growth and expansion. In 2018, Pattaya was the 18thmost-visited city in the world, attracting 8.67 million international travellers, according to the MasterCard Global Destination Cities Index 2018. This makes the city more popular than Bali and creates a powerful focal pointfor the EEC region.Pattaya is well situated between Bangkok and the EEC, being only a two-hour drive from Bangkok, and is the nearest resort location from Bangkok, which means it will always be an ideal location forweekend getaways.Due to the increasing density of Pattaya, many are expanding their attention further out from downtown Pattaya to previously overlooked beach areas such as Bang Saray.As a result, these areas areattracting rising numbers of visitors and businesses. Considering potential investment, we believe there are good fundamental factors to support future growth in the value of land and property around the Bang Saray andU-Tapao area.We have seen new developments completed in the area to enhance both short-term vacations and long-term relocation. New hotels such as the Renaissance Pattaya have shown exceptional performancewith an 80% occupancy rate."A number of other five-star branded hotels are also planned to be built in the area. Quality residential developments such as Sunplay Bangsaray and new golf courses have been developedin the area as well,"Traditional tourist spots and family activities such as wineries and Big Buddha Mountain are now being supplemented with modern family attractions such as branded water parks, a theme park, world-renowned golf courses and a growing selection of food and beverage destinations.In addition, international schools with famous names like Rugby and St. Andrews, along with private hospitals and sports clubs, aremaking the growing area a destination for relocation, retirement, and expatriate leasing market.We think the area around Na Jomtien and Bang Saray up to U-Tapao will grow as an upmarket location for Pattaya withseveral large-scale developments being planned.Furthermore, EEC has received and continues to get heavy government investment as a hub for industrial, trade, tourism, and commercial sectors. The incentives forestablishing businesses, combined with the area's scenery and climate, have set a good foundation for creating strong demand for new accommodation along this stretch of coast as industry draws workers. In recentyears, the area's accessibility has been enhanced through infrastructure projects. The expansion of U-Tapao airport has created a dedicated EEC air hub that now welcomes international flights from key feeder marketsincluding China, Russia and even the UK, and considerable expansion is being planned in the future.Other ground transportation developments are also making the area far more accessible. New expresswaydevelopments are going to make driving far more convenient as commuters can bypass the busy downtown areas of Pattaya.The planned High-Speed Rail Link connecting U-Tapao with Bangkok and its two airports —Don Mueang and Suvarnabhumi — will further streamline connectivity, creating almost seamless access throughout the EEC when it comes into service in 2023.The combination of industrial growth, the development ofefficient transportation infrastructure, as well as the area's natural beauty and host of attractions, gives this area a high potential for future growth.We are observing that the area is growing as an upmarket hub and believethat, due to these factors, this area provides many opportunities for developers to cater to rising demand in a variety of market segments such as hotels, residential homes, retirement communities, and retail centres andfor the investors to start looking for investment opportunities.


https://www.bangkokpost.com/business/news/1624562/bang-saray-new-destination-on-eec

Bang Saray new destination on EEC06 February 2019


https://www.bangkokpost.com/business/news/1624562/bang-saray-new-destination-on-eec

Thailand saw significant economic and social progress in the past five years, especially in infrastructure development, according to a report by the National Economic and Social Development Commission (NESDC).Thosaporn Sirisamphand, NESDC secretary-general, said the report showed infrastructure development progressed with 2.45 trillion baht in investment during 2014-18, which is forecast to increase the country'scompetitiveness. "There has been quite some progress in development after new investments in main infrastructure over the past 10 years," he said.This includes 1.27 trillion baht in rail development that grew the amountof dual-track rails in the country to 2,453 kilometres, up from 251km, making a total of 5,738km of tracks that includes the first stage of Thai-Sino high-speed rail. Investment in three motorways accounted for 302 billionbaht, including Pattaya-Map Ta Phut, Bang Pa-in-Nakhon Ratchasima and Bang Yai-Kanchanaburi. The next development includes Nakhon Pathom-Cham-am, the third phase expressway and Kathu-Patong in Phuket.Mass transit investment in Bangkok and its vicinity accounted for 875 billion baht, with routes spanning 343km by 2025, covering 680 square km in operating service and accessing 5.13 million passengers. Otherinvestments were in internet broadband, a submarine cable and satellites. Mr Thosaporn said economic growth expanded 1% in 2014, and 4.3% in the first nine months of 2018. In 2018, NESDC gauged economic growthat 4.2%, with 4% forecast for 2019, higher than the 3.7% average global economic growth. The agency is scheduled to announce GDP results for the fourth quarter on Feb 18. He said the main risk factors to the economythis year were a slowdown of the global economy, Brexit, and the US-China trade war. Private consumption is expected to increase this year, while the 1% unemployment rate will remain unchanged. Public debt isforecast at 41.8%. Mr Thosaporn said developing the 10 target industries will drive the economy over the next decade, with total investment of 765 billion baht over the next five years. Some 510 billion baht will go topetrochemicals, 151 billion to robotics, 13.2 billion for digital, 9.26 billion to medical and 6.5 billion for aviation. R&D expenditure reached 1% of GDP in 2018, accounting for 154 billion baht, while the agency expects R&Dexpenditure will reach 2% of GDP by 2022. The agency suggested development of small and medium-sized enterprises (SME) and startups should be accelerated because they accounted for 42.6% of GDP in the first 10months of 2018, up from 39.7% in 2014. In many developed countries, SMEs account for 70-80% of GDP. He said the tourism infrastructure should be developed to direct visitors to second tier provinces to redirectincome to remote areas. The sector is projected to drive the economy this year with a total of 40 million foreign visitors. Tourism accounted for 14.2% of GDP in 2014 and 18.4% in 2018.


https://www.bangkokpost.com/business/news/1624858/nesdc-infrastructure-investment-booms

NESDC: Infrastructure investment booms7 February 2019


https://www.bangkokpost.com/business/news/1624858/nesdc-infrastructure-investment-booms

The Industrial Estate Authority of Thailand (IEAT) is confident it can achieve its 2019 land sales goal of 3,500 rai after it sold 720.75 rai worth 5.56 billion baht in the first quarter of fiscal 2019, ending in December.

Of the total land sales, 664.06 rai worth 2.84 billion baht were both sales and rental plots in the government's Eastern Economic Corridor (EEC) scheme, while the remainder of 56.69 rai worth 2.72 billion was outside theEEC. "Many megaprojects in the three EEC provinces of Chachoengsao, Chon Buri and Rayong are increasing investor confidence, and other new investment projects are planned," said governor Somchint Pilouk. "Allfive EEC megaprojects are very attractive to investors looking to buy or rent plots along these initiatives.“ The five projects are: the U-tapao aviation city (worth 290 billion baht); a maintenance, repair and overhaul centre(10.6 billion); a high-speed railway linking three airports (225 billion); the third phase of Laem Chabang port (114 billion baht); and the third phase of the Map Ta Phut port (55.4 billion baht). The government expects toattract investment worth 1.7 trillion baht ($49 billion) for the scheme over five years (2017-21). "Many industrial estates are benefiting from the EEC such as Amata City Rayong, Amata City Chon Buri, three WHA EasternSeaboard estates in Rayong and Chon Buri, and Pinthong Industrial Park in Chon Buri," said Ms Somchint. Automotive, electronics and steel are the three top sectors bringing investment flows into the EEC. In fiscal2018, ending in September, IEAT posted land sales of 1,377 rai, well below its target of 3,500 rai, because global and domestic investment sentiment were cloudy. IEAT is the state-run operator of 54 industrial estates in16 provinces nationwide, spanning 165,400 rai. Of those, 13 locations are under IEAT operation and 41 industrial estates have been granted licences for cooperation with private companies. IEAT has 20,352 rai worth ofplots for sale and rent. For the EEC, the government has prepared plots of 137,723 rai in 35 industrial estates, with 10,840 rai ready for sale. The authority expects new investment of 1.31 trillion baht in the three EECprovinces during 2017-21.


https://www.bangkokpost.com/business/news/1624850/ieat-optimistic-on-eec-industrial-estate-sales

IEAT optimistic on EEC industrial estate sales7 February 2019


https://www.bangkokpost.com/business/news/1624850/ieat-optimistic-on-eec-industrial-estate-sales

BSR Joint Venture, one of two contenders in the bidding for the high-speed railway project connecting three major airports, still has a chance to enter negotiations with the State Railway of Thailand (SRT) over the resultsof the bid, the SRT said on Thursday.

Even though the Charoen Pokphand Group (CP)-led consortium has offered the lowest bid, it has not yet been named the winner as its offer is subject to due diligence by the SRT's bidding committee, SRT actinggovernor Worawut Mala said previously.

The CP-led consortium comprises CP, Bangkok Expressway and Metro Plc, China Railway Construction Corporation Ltd, Ch Karnchang Plc, and Italian-Thai Development Plc.

Despite the fact that BSR offered a bid above the cabinet-approved threshold, there isn't any rule in the terms of reference indicating that it should be disqualified, Mr Worawut said.

BSR Joint Venture is made up of Bangkok Mass Transit System Plc, Sino-Thai Engineering and Construction Plc, and Ratchaburi Electricity Generating Holding Plc.

Negotiations between the SRT's bidding committee and the CP-led consortium yesterday failed to come to any conclusion. The next round of talks is slated for Tuesday, according to a member of the committee.

The cabinet approved the valuation of the project at 119.4 billion baht. The CP-led consortium had offered 117.2 billion baht and BSR 169.9 billion baht, said Mr Worawut.

The SRT aims to get the negotiations with the CP-led consortium wrapped up this month.

"Details of these negotiations are confidential," Mr Worawut said. "Wait until results of the negotiations are made public as they may defy people's general expectations."

The government expects the rail link project connecting Don Mueang and Suvarnabhumi airports in Bangkok with U-Tapao airport in the eastern province of Rayong to yield an economic return of 700 billion baht..


https://www.bangkokpost.com/business/tourism-and-transport/1625378/bsr-still-in-running-for-fast-rail-project

BSR still in running for fast rail project8 February 2019


https://www.bangkokpost.com/business/tourism-and-transport/1625378/bsr-still-in-running-for-fast-rail-project

The State Railway of Thailand (SRT) is pushing ahead with an investment plan to turn railroads within 500 kilometres of Bangkok into an electric system, according to SRT's acting governor Voravuth Mala.

He said the plan for the the rail system around Bangkok to go electric, which is estimated to cost about 30 million baht per km, is divided into two phases involving changes of the signalling system to ETCS (EuropeanTrain Control System) level 1. The first phase involves 250km of routes around Bangkok and the second involves the next 250km of rail routes.

Mr Voravuth said the SRT will have to replace diesel locomotives with electric engines and diesel multiple unit trains with Electric Multiple Unit rail cars and procurement plans will be drafted in line with the transition.

The plan to electrify the railroad is in line with the development of the Red Line's electric commuter rail network being developed by the SRT. The 26km Bang Sue-Rangsit route with 10 stations will be opened along withthe Bang Sue Central Station in early 2021. Valued at about 30 billion baht, the station is part of the Red Line's 80-billion-baht network.

According to Mr Voravuth, the project is expected to break even in two or three years after the commercial launch when the total of daily passengers is estimated to rise to 80,000. A subsidiary to operate the Red Linenetwork is likely to be set up within two months.

Bidding for the planned extension of the Red Line from Rangsit to Thammasat University's Rangsit campus is expected to take place this year and the SRT has a plan to extend the route north to Ban Phachi in Ayutthaya.

However, he said when the Bang Sue Central Station first opens in 2021, it will serve only the Red Line route while all long-haul and suburban trains running on diesel engines will go to Hua Lamphong station.

The SRT will speed up switching from diesel-powered to electric-powered trains and when all routes are transferred to the Bang Sue Central station, Hua Lamphong will be developed into a depot for the Red Line system,he said, adding that the property will be turned into a railway museum or a hotel.

Commenting on the SRT's financial heath, Mr Voravuth, who is also deputy governor in charge of asset management, said the rail agency's earnings before interest, taxes, depreciation and amortisation are expected toreach zero in 2023. He said the debt-ridden SRT has rolled out revival plans, debt servicing, and new railway projects to turn the situation.


https://www.bangkokpost.com/business/tourism-and-transport/1627014/rail-agencys-electric-dreams

Rail agency's electric dreamsSRT launches push for network revamp11 February 2019


https://www.bangkokpost.com/business/tourism-and-transport/1627014/rail-agencys-electric-dreams

The National Economic and Social Development Council (NESDC) has given the nod to the Orange Line's western section, stretching from Bang Khun Non to Min Buri, as one of the last mass transit projects in Bangkokapproved by this government. According to an NESDC source who requested anonymity, the council on Feb 6 approved the Orange Line's 235-billion-baht western section after the Public-Private Partnership (PPP)Committee agreed to the development under a fast-track joint investment scheme on Jan 21. Investment in the western section will be in the form of the net cost PPP model, whereby the government will be responsiblefor land expropriation fees and the private sector will invest in the rail system and provide operations and maintenance. The section's operating contract will run for 30 years.The new section will help commuters travellingfrom both Bangkok's western and eastern districts to the capital's centre after it connects with the eastern section, running from Thailand Cultural Centre to Min Buri. The eastern Orange Line, scheduled for opening in2023, is under construction. According to the source, the Mass Rapid Transit Authority of Thailand, which handles the project's development, is expected to complete the terms of reference early this year, withconstruction likely to kick off by late this year or early 2020. The project is scheduled to become operational in 2025. The source said the Orange Line's western section is likely to be the last mass transit project inBangkok approved by this government before the general election set for March 24. Last month the NESDC approved the Dark Red Line extension linking Rangsit with Thammasat University's Rangsit campus and theLight Red Line connecting Taling Chan-Salaya and Taling Chan-Siriraj.Thosaporn Sirisamphand, the NESDC's secretary-general, said 70% of the 10 planned mass transit lines in Bangkok and its vicinity are underconstruction. The agency reported recently that Thailand saw significant economic and social progress in the past five years, especially in infrastructure development.The report showed that infrastructure developmentprogressed with 2.45 trillion baht in investment during 2014-18, which is forecast to increase the country's competitiveness.This includes 1.27 trillion baht in rail development that expanded the amount of dual-track rail inthe country to 2,453 kilometres, up from 251km, making a total of 5,738km of tracks that includes the first stage of the Thai-Sino high-speed rail.Investment in three motorways accounted for 302 billion baht, includingPattaya-Map Ta Phut, Bang Pa-in-Nakhon Ratchasima and Bang Yai-Kanchanaburi.The next development includes Nakhon Pathom-Cha-am, the third-phase expressway and Kathu-Patong in Phuket.Investment for 10mass transit projects in Bangkok and its vicinity accounted for 875 billion baht, with routes spanning 343km by 2025, covering 680 sq km in operating service and accessing 5.13 million passengers.

Other investments were in internet broadband, a submarine cable and satellites.Mr Thosaporn said that once completed the 10 mass transit projects are sufficient to facilitate commuters in Bangkok and the vicinity,helping ease traffic congestion and reduce pollution.He said the development of other mass transit projects in big cities such as Phuket, Khon Kaen, Hat Yai, Nakhon Ratchasima and Phitsanulok will be handled by thenext government.

Deputy Prime Minister Somkid Jatusripitak, who chaired the meeting of the Land Traffic Management Commission last October, assigned responsible units to speed up construction of mass transit projects in Phuket,Chiang Mai, Nakhon Ratchasima and Khon Kaen.


https://www.bangkokpost.com/business/tourism-and-transport/1627166/agency-oks-final-orange-line-rail

Agency OKs final Orange Line rail11 February 2019


https://www.bangkokpost.com/business/tourism-and-transport/1627166/agency-oks-final-orange-line-rail

Somkid hastens mega-projects12 February 2019

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DEPUTY PRIME Minister Somkid Jatusripitak has urged the Transport Ministry to speed up disbursement of its infrastructure investment as planned, while bids will open for six projects in February-March with contracts signed by the middle of the year. After evaluating the ministry’s major projects that could help stimulate the Thai economy in the first and second quarters of this year, Somkid saidinvestment, particularly in public infrastructure, was the key. Noting a slowdown in disbursement, he asked the Transport Ministry to push the pace of mega-projects. In particular, he asked nationalcarrier Thai Airways International for implementation of its plan to procure 24 aircraft by the end of this month, as well as speedier execution of its maintenance, repair and overhaul (MRO) centreproject, which is a joint project with European planemaker Airbus.“This is a period when foreigners want to see the election [in Thailand]. The global export situation is not satisfactory so we have tostrengthen the domestic economy. We must fully speed up in the first half of this year and once the election is over, we can carry on,” Somkid said.Transport Minister Arkhom Termpittayapaisith saidthe ministry would expedite its tasks and push major projects for Cabinet review within the next couple of months.The ministry’s 21 urgent projects are worth a combined Bt1.29 trillion. Air transportprojects include THAI’s Bt160-billion new fleet procurement of 38 aircraft and the Bt10-billion MRO centre, Suvarnabhumi Airport’s Bt16-billion satellite building construction and the Bt15-billion ChiangMai Airport expansion. Water transport projects are the Bt84-billion third phase of Laem Chabang Port, the Bt23-billion Klong Toey Port expansion, and the Bt5-billion Ranong Port improvement.Therail transport projects extend from the Bt179-billion Thailand-China high-speed railway, to the Bt220-billion high-speed rail which will connect three Thai airports (Don Mueang, Suvarnabhumi and U-tapao), and the Bt77-billion Bangkok-Hua Hin high-speed rail as well as laying double-track rail in several routes.“We have asked THAI to accelerate its new fleet procurement and the joint investmentfor the MRO centre to be finalised within this June,” Arkhom said. A joint contract signing is expected by June.The contract signing is expected for construction of the second section of the 252-kilometre Thailand-China high-speed rail project within one to two weeks, while bidding for other sections is likely during March-May.The double-track railway – Khon Kaen’s Ban Phai-NakhonPhanom extension – will be forwarded to the Cabinet for approval by early March and the remaining seven double-track rail projects will be proposed to the Cabinet by the end of that month.HighwayRoute No 35 (Thon Buri-Pak Tho), Bang Khun Thien-Ekkachai section is reportedly in the bidding process and the contract signing is expected in March. The Rama III-Dao Khanong-WesternBangkok Outer Ring Expressway project is in an international bidding process with bids expected this month and the contract signing in April.

Source: THE NATION




The PPP Promotion Act, which already passed through the National Legislative Assembly (NLA), stipulates only basic infrastructure projects and public services can be invested in jointly by the public and private sectors,says the head of the State Enterprise Policy Office (Sepo).

The new law, which will replace the Private Investment in State Undertakings Act, will expedite the joint investment process between the public and private sectors, empowered by the cabinet to tackle obstacles and anydelays, said Sepo director-general Prapas Kong-Ied.

The draft is awaiting royal approval before being published in the Royal Gazette.

The law hinges on using the private sector's expertise and innovation in joint investment projects and transferring knowledge to state agencies, as well as setting clear-cut policy for joint investment infrastructure andpublic service projects to comply with the legal process.

The law will require chairmen of the Thai Chamber of Commerce, the Federation of Thai Industries and the Thai Bankers' Association to be additional members of the Public-Private Partnership (PPP) committee to add aprivate sector angle in joint investment projects. Moreover, experts related to joint venture projects will be a part of the selection committee.

The law sets regulations and processes that are concise, transparent and require better inspection, as well as market sounding from companies during the process, Mr Prapas said.

If there are problems or obstructions delaying joint investment projects, state agencies can go to the PPP committee and the cabinet will set a time frame to address such problems.

The law requires joint investment measures to be launched in an appropriate manner under the fiscal policy discipline framework, and empowers state agencies tasked with ushering along projects to exercise power forpublic benefit, delegate others to run joint investment projects on a temporary basis, and amend or even cancel contracts.

State agencies must compensate private contractors if they are not the cause of the problem.

The prospective PPP developments cover 12 categories of the national infrastructure plan -- roads (highways and motorways), railways, airports, seaports, water management, irrigation, energy, telecommunications,science/technology, hospitals, schools and housing for low-income earners.


https://www.bangkokpost.com/business/news/1627758/ppp-act-restricts-scope-to-basic-projects

PPP Act restricts scope to basic projectsNew law to hasten investment process12 February 2019


https://www.bangkokpost.com/business/news/1627758/ppp-act-restricts-scope-to-basic-projects

The Rail Department, a newly created body tasked with regulating rail management, is set to begin operations in April. Nathporn Chatusripitak, a spokesman for Deputy Prime Minister Somkid Jatusripitak, who overseesthe government’s economic affairs, said the National Legislative Assembly (NLA) approved a draft bill on the Rail Department and it is pending royal endorsement. Under the draft bill, the existing Rail ProjectDevelopment Office under the Transport and Traffic Policy and Planning Office will be upgraded to the Rail Department. The department will function as a policymaker and regulator for overall rail management.

“The Rail Department has duties to propose rail-related policy, strategy and development plans for the complete rail network, not only at home but also connectivity with neighbouring countries,” Mr Nathporn said.

The department is also tasked with supervising electric rail, double-track rail and high-speed rail to ensure development lives up to international and safety standards; setting fair ticket prices; and upgrading rail services.

Mr Nathporn said the State Railway of Thailand and the National Science and Technology Development Agency have reached an agreement to improve Thailand’s parts-making industry for the rail system so that it meetsinternational standards.

He said the government will later establish the Institute of Rail Technology Development as a public organisation to conduct research, training and human resource development.

The government is encouraging the private sector to manufacture trains, signalling systems and equipment in Thailand, with the goal of increasing competitiveness in the rail industry and reducing train imports.

The Board of Investment (BoI) earlier on Jan 11 approved special measures to promote investment in rail and rail-related industries, projecting demand to top 10,000 trains over the next 20 years.

Over the next 10 years, plans call for developing a 6,000km network with double-track, electric and high-speed rail. The BoI’s special measures will be offered for making train cars, significant parts of the operator’s cab,signalling and braking systems, couplers, rails and power supply.Under the special measures, investment in train cars with domestic engineering designs will be entitled to a corporate income tax exemption for eightyears.Interested parties who submit applications to the BoI by Dec 30, 2021 will be granted a 50% reduction in corporate income tax for three to five years.The measure aims to accelerate investment within threeyears.Projects with factories in Khon Kaen and Nakhon Ratchasima will be afforded a 50% reduction in corporate income tax for five years.


https://www.bangkokpost.com/business/tourism-and-transport/1628286/rail-overseer-gets-nla-nod

Rail overseer gets NLA nod13 February 2019


https://www.bangkokpost.com/business/tourism-and-transport/1628286/rail-overseer-gets-nla-nod

Completion of bids for Thai-China rail project expected in March15 February 2019

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TRANSPORT Minister Arkhom Termpittayapaisith is confident of completing the bids for the remaining 12 separate contracts of the Thai-Chinese high-speed rail project, with the first phase runningfrom Bangkok to Nakhon Ratchasima, in March this year. Arkhom said, after chairing a meeting of the committee on the Thai-Chinese high-speed rail scheme yesterday, that the State Railway ofThailand (SRT) is preparing terms of reference (TOR) for five contracts of the third 144-kilometre section. Fair price is expected to be determined this month for seven contracts related to the fourth91.25-kilometre section, also under the first phase. The terms of reference for the contracts are to be released next month. So far, construction of the first 3.5-kilometre section from Klang Dong toPang Asok in Nakhon Ratchasima's Pak Chong district has commenced , while contract-signing for the second 11-kilometre section will take place on March 6. The 252.5-kilometre-long phase fromBangkok to Nakhon Ratchasima has been split into 14 separate contracts, which will use design and construction blueprints from China.“In March, bidding for the first phase of the Thai-Chinese high-speed rail project will be completed for consideration. Contract signing will take place in May with construction set to start in June," Arkhom said. The second phase, with a budget of Bt797 million, isstill in the design process. Thailand will take charge of design and construction under China’s advice. Arkhom said the 27th official Thai-Chinese high-speed railway meeting, which will be held duringFebruary 27-March 1 in China, will continue discussions on guarantee period, contract collaterals, fine for delay, compensation, as part of the project's so-called contract 2.3. "Contract 2.3 has a lot ofdetails for further discussion in contract conditions and each party's responsibility as this involves the project's railway, train signalling system and maintenance, which should be finalised in this roundof negotiation,” he said. The result will be likely be forwarded to the Thai Cabinet in March with contract signing expected in the same month. Arkhom said that Thailand will stand firm on Thai laws butnegotiation must be made first and contract 2.3's amount is about Bt38 billion as proposed to the Cabinet earlier. In regard to the 25-year borrowings for contract 2.3, Thai Ministry of Finance confirmedthat it could accept the lending rate, proposed by China, of no more than 3 per cent with a grace period of five years. But this matter has not been discussed in details as contract 2.3 issues must befinished first, Arkhom said. An anonymous source from Thai Ministry of Transport said that China's proposal for contract 2.3 is not based on Chinese law, but China's experience in joining investmentwith other countries, while expecting this upcoming meeting to reach conclusion of the remaining 60 issues, out of 130 issues of contract 2.3.

Source: THE NATION




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