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Infrastructure & PPPs in Thailand - Q1 2024 Update

YOG INFRA Q1 2024 insights

THAILAND is developing a large number of multimodal logistics projects, with a strong focus on enhancement of transport infrastructure and increasing connectivity with neighbouring countries. A large pipeline of USD 33 Bn of infrastructure projects has been annouced for implementation till 2027, a majority of which are to be developed through PPP modality. There is also an increase in support from multilateral banks, in form of debt and equity, to finance clean energy projects in the country.

Read more about key developments in Infrastructure and PPPs in the country in our latest insight.

 

Thailand Q1 2024

January 2024

KOREA’S DOOSAN ENERBILITY PLANS CARBON CAPTURE PROJECTS IN THAILAND

South Korea’s major power plant builder Doosan Enerbility Co. will promote the supply of carbon-free power generation technologies such as carbon capture, utilization and storage (CCUS) and ammonia cogeneration to Thailand. The company signed a memorandum of understanding (MOU) with the Electricity Generating Authority of Thailand (EGAT) for joint research and cooperation on CCUS and carbon-free power generation technologies. EGAT is a state-owned power utility that produces and supplies 33 % of Thailand's electricity. Under the agreement, the two companies will apply CCUS technology to power plants operating in Thailand, as well as establish a comprehensive partnership to introduce carbon-free power generation technologies such as ammonia cogeneration, renewable energy and hydrogen.


TAIWAN MANUFACTURER SIGNS ROOFTOP SOLAR DEAL WITH THAI DEVELOPER

Taiflex Scientific Company, which makes flexible copper clad laminates for electronic products, is looking to collaborate with a local partner to develop distributed solar energy facilities in Thailand. The Taipei-based company signed an agreement with Thai solar developer Enmax Group to purchase green certificates converted from 75 Mn kwh of electricity to be generated by solar projects developed by Enmax. As part of the deal, Enmax will build solar projects on the rooftops of Taiflex’s manufacturing plants in Thailand. The agreement has a duration of 10 years. Enmax specialises in solar power generation, having developed more than 1,800 projects with a total capacity of 250 MW. 

The move is part of Taiflex’s plan to achieve net zero emissions by 2050. The company also formed a sustainable development centre focusing on developing businesses related to clean energy and environment protection. Flexible copper clad laminates are primarily used for the production of mobile phones, tablets and earphones. Taiflex is currently building its first manufacturing plant in Thailand’s Amata City Chonburi Industrial Estate. The plant will cover 42,000 sqm with a target commissioning date in the second quarter of year 2024.

 

ADB LENDS USD 67 MN TO THAI E-MOBILITY COMPANY 

The Asian Development Bank (ADB) will lend THB 2.4 Bn (USD 67.3 Mn) to Thailand-based BANPU Public Company to finance 1,500 six-seater electric tuktuks (e-tuktuks) and related charging stations for micro-scale transit services in Bangkok. It will also support a 1.3 GWh expansion of a lithium-ion electric vehicle battery manufacturing facility in China’s Jiangsu province. 

The package includes a concessional loan of up to USD 10.7 Mn from the ADB-administered Clean Technology Fund. Additionally, the Manila-based multilateral lender will provide technical assistance, funded by the ASEAN Catalytic Green Finance Facility, to assess the potential for micro-scale transit services in other Southeast Asia cities. Thailand is among the most urbanized countries in Southeast Asia, and its transport sector contributes a third of the nation’s carbon dioxide emissions. The e-tuktuks have been operating under the MuvMi brand, managed by Urban Mobility Tech Company, an associate company of BANPU. MuvMi has more than 600 e-tuktuks in 12 major areas throughout Bangkok.

 

February 2024

THAILAND PLANS USD 33 BN PUBLIC-PRIVATE INVESTMENT PROJECTS DURING 2020-2027

The government of Thailand plans public-private partnership investment projects worth 1.19 Trn baht (USD 33 Bn) during 2020-2027, as it tries to boost long-term economic growth. The revised amount is slightly higher than 1.17 Trn baht (USD 32 Bn) previously approved and aims to attract more private companies to invest in government projects.

The public-private partnership committee also approved an investment worth about 18.4 Bn baht (USD 503 Mn) at Laem Chabang port in the eastern province of Chonburi. The government will also expedite other infrastructure projects which have high economic value, as Southeast Asia's second-largest economy has lagged regional peers. The finance ministry has forecast only 2.8 % growth in year 2024 after 1.8 % growth estimated for 2023, a sharp downgrade from earlier forecasts.


THAI TRANSPORT MINISTRY ANNOUNCES USD 17.8 BN FOR INFRASTRUCTURE PROJECTS

The Transport Ministry has unveiled its plans to invest 652 Bn baht (USD 17.8 Bn) in about 150 transport projects this and next year to improve the country's infrastructure. 64 projects would be launched in year 2024 and 31 more are in the pipeline with a total budget of 389 Bn baht (USD 10.63 Bn). In year 2025, the ministry has 57 new projects in the pipeline worth a total of 263 Bn baht (USD 7.2 Bn).

For motorway projects, 18 projects will be launched for commuters in year 2024 such as Motorway No 81 (Bang Yai-Kanchanaburi) and Motorway No 6 (Bang Pa-in-Nakhon Ratchasima) while ground will be broken on the 5th Thai–Lao Friendship Bridge in Bueng Kan in 2024. 9 railway projects will be launched in Year 2024 such as a double-track railway running from Nakhon Pathom to Hua Hin, Hua Hin to Prachuap Khiri Khan and Prachuap Khiri Khan to Chumphon. The ministry also plans to push the Railway Act to be put in place in year 2024.


March 2024

AIIB PLANS USD 170 MN FINANCING FOR THAI RENEWABLES

The Asian Infrastructure Investment Bank (AIIB) plans to help finance a THB 34 Bn (USD 1 Bn) clean energy portfolio in Thailand. The Beijing-based multilateral bank will loan USD 170 Mn to the GULF Renewable Power Project. The portfolio involves the development, construction, and operation of 8 solar PV power plants with a total capacity of 393 MW, and 4 solar PV power stations with a total capacity of 256 MW integrated with battery energy storage systems.

Among them are

  • The Saeng Thai Phalangngan Solar Power Plant,

  • The Breeze,

  • Shine Solar Power Plant, and

  • The Phalangngan Rungrueang Solar Power Plant.

The portfolio will be co-financed with the Asian Development Bank (ADB) as lead co-financier.  The project sponsor is Thai energy group Gulf Energy Development Public Company, with the estimated date of last disbursement scheduled for the fourth quarter of 2025. The AIIB plans to grant final approval on the financing by the end of the second quarter of 2024.


FACTORIES IN THAILAND WILL NO LONGER NEED PERMISSION TO INSTALL SOLAR ROOFTOPS

The Thai Ministry of Industry is amending the Factory Act, such that rooftop solar installations with a capacity exceeding 1 MW will no longer require obtaining a factory license. This represents a relaxation of restrictions on rooftop photovoltaic systems, allowing organizations with higher electricity consumption to utilize such installations.

Under the current regulations, which only with factory license are allowed to use rooftop photovoltaic systems with larger capacities. However, with the rapid advancement of battery technology, the number of solar panels required to generate the same amount of electricity has significantly decreased by 2.7 times compared to 2014. Moreover, these systems are now safer and more environmentally friendly. In response to continuous demands from both public and private sectors, the Ministry of Industry has initiated this process of amending the regulations.


THAILAND PLANS PPP AUCTION FOR BANGKOK AIRPORT EXPRESSWAY

Thailand plans to use a public-private partnership (PPP) model to develop an elevated highway connecting southern Bangkok to the Suvarnabhumi International Airport. The country’s expressway authority estimates the total cost of the Srinakarin-Suvarnabhumi Expressway project to be THB 20 Bn (USD 560 Mn). The 18 km elevated motorway will run through the Srinakarin Interchange, ending at Lat Krabang district with an interchange linking to the airport.

 

List of key transactions - Thailand Q1 2024

 

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​YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.


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