Public-Private Partnership (PPP) in Thailand

Public-Private Partnership
(PPP) in Thailand
Context
1. Public-Private Partnership (PPP) in Infrastructure
2. Regulatory Framework
3.PPP Project Supervision
4.PPP Types and Forms

PUBLIC-PRIVATE PARTNERSHIP (PPP) IN INFRASTRUCTU
1. Definition of PPP
• Public-private partnerships (PPPs) involve public and private sectors working
together to develop, finance, operate, and maintain infrastructure projects, with the
private sector typically taking on more responsibility and risk.
 PPP Unit in Thailand:

 In Thailand, the PPP approach is often overseen by dedicated units or agencies responsible for
promoting and facilitating PPP projects. The key agency involved in PPP in Thailand is the Public
Private Partnership Center of Thailand (PPPCT).
 Public Private Partnership Center of Thailand (PPPCT):

 The PPPCT, a government agency under the Ministry of Finance, focuses on promoting and
facilitating the implementation of PPP projects across various sectors.
.
 Functions of PPPCT:
• Project Identification: The PPPCT identifies potential projects that could benefit from private sector
involvement.
• Project Preparation: It assists in the preparation and structuring of PPP projects, including feasibility studies and
risk assessments.
• Procurement Support: The PPPCT plays a role in the procurement process, helping to select private partners
through transparent and competitive processes.
• Capacity Building: The center works on building the capacity of government agencies to manage and implement
PPP projects effectively.
• Policy Advocacy: PPPCT may also contribute to the development and improvement of PPP policies and
regulations in Thailand.
.
 Legal and Regulatory Framework:

 Thailand has a legal and regulatory framework for Public-Private Partnerships (PPPs), aiming to ensure
transparency, fairness, and clarity for both public and private entities involved.
 Types of PPP Projects:
 PPP projects in Thailand span various sectors, including transportation (roads, airports, railways), energy, water
supply, and social infrastructure (such as hospitals and schools).
 Challenges and Opportunities:
 Thailand faces regulatory complexities, political resistance, and financing issues in implementing PPP projects,
but well-structured PPPs can offer private sector investment, improved infrastructure, and efficient service
delivery.
.
REGULATORY FRAMEWORK
•PPP Project Proposal and PPP Project Approval

 Pursuant to the PPP Act, the Project-Owner Agency (the “POA”) who wishes to pursue a
PPP project must submit a key principle of the project as well as a project appraisal report to
the responsible minister for approval.
 Upon approval of the report by the responsible minister, the POA must then submit the
principle of the project and the report to the Ministry of Finance, State Enterprise Policy
Office (SEPO). The SEPO must then complete its consideration and, should it approve the
report, submit it to the PPP Committee together with the opinion of the Office of the
National Economic and Social Development Council and other relevant government
agencies for approval.
 In cases where the proposed PPP project involves any expenditure under the State budget, or
any expenditure from public debt by way of a loan for the funding of the project, the approval
process should take into consideration the opinion of the Budget Bureau.
 Once the PPP Committee approves the principle of the project, the responsible minister shall
submit it to the Cabinet for final approval.
 Upon issuance of the final approval by the Cabinet, the POA must prepare an Invitation to
Tender (“ITT”), Request for Proposal (“RFP”), and a draft public-private partnership
agreement (“PA”) and propose these documents to the Selection Committee (defined below)
for approval.
•Tendering and Negotiation Process

 The selection of the private party can be either by way of bidding or non-bidding (in the case
that the Cabinet has approved the non-bidding method). Either way, in preparing the ITT, the
RFP and the PA, the POA must hold a public hearing.
 The selection process includes the following steps: invitation to tender, selection of tenderer,
PA negotiation, and PA execution. The ultimate granting of the concession involves approvals
from several governmental entities (as detailed below).
(a) Selection Process

 The Selection Committee shall be chaired by a representative from the POA and shall have the following duties:
• to consider the approval of the draft ITT, draft RFP and draft PA;
• to set the fees for selling the RFP, for evaluating the bids and for execution of the PA;
• to set the bid bond and performance bond;
• to negotiate and select the private entity for participating in the project;
• to negotiate the draft PA;
• to require the POA or private entity to give an explanation or submit relevant information or documents; and
• to consider taking other actions related to the project as deemed appropriate.
 The PPP Act does not prescribe the timeframe for the consideration of bids. In practice, the Selection
Committee would take approximately 80 – 100 days from the date of submission to complete the
selection process.
 The selection decision made by the Selection Committee will be notified to the bidder; it should be noted
though that such selection decision will not constitute a final approval, as the final granting of the
concession to the successful bidder will be subject to the approvals by the selected bidder and of the
agreed concession agreement by the and by the Cabinet as explained below.
(b) From Selection until Final Execution

 Negotiation of the draft PA begins upon conclusion of the Selection Committee’s initial selection decision. The
Selection Committee is responsible for negotiations, which last approximately 30 days, although no timeline is
prescribed by law.
 Within 15 days from the date the PA is considered in final agreed form, the POA shall propose the final agreed
PA to the Office of the Attorney-General (the “OAG”),. The OAG will have 45 days to review this final agreed
draft. Then the POA shall propose the selection result, the draft PA approved by the OAG and other important
terms and conditions of the PA to the responsible minister for approval before the final approval by the Cabinet.
 Should the responsible minister not agree with the proposed selection and the draft PA, the matters will be
returned to the POA and the Selection Committee for reconsideration. Alternatively, if the responsible minister
as well as the Cabinet approve the proposal, the POA will proceed to execute the PA with the successful
tenderer.
PPP PROJECT SUPERVISION
 The responsible minister will appoint a supervisory committee after executing the PA to monitor
and supervise the project to ensure compliance with the PA.
 The supervisory committee's responsibilities include proposing solutions to potential project
implementation issues, reporting to the minister, and providing opinion on PA amendments.
PPP TYPES AND FORMS
 No specific Thai law or regulation defines specifically or regulates the partnership

model. The ownership of assets depends on the particular POA’s establishment act.
However, based on our experience, the POA will usually adopt one of the following
PPP types
REFERENCE
•https://www.google.com/search?client=firefox-bd&q=PPP+unit+or+PPP+process+%28infrastructure
%29+in+Thailand+
•https://www.kwm.com/au/en/insights/latest-thinking/public-private-partnerships-in-thailand.html
the Public Private Partnership Center of information provided in my previous response is based on general knowledge
up to January 2022,

Public-Private Partnership (PPP) in Thailand

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Public-Private Partnership

1. Public-Private Partnership (PPP) in Infrastructure

3.PPP Project Supervision

4.PPP Types and Forms

 PPP Unit in Thailand:

 Public Private Partnership Center of Thailand (PPPCT):

 Legal and Regulatory Framework:

•PPP Project Proposal and PPP Project Approval

•Tendering and Negotiation Process

(a) Selection Process

(b) From Selection until Final Execution

 No specific Thai law or regulation defines specifically or regulates the partnership

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