Infrastructure & PPPs in Thailand - Q1 2025 Update
- YOG INFRA
- Apr 7
- 12 min read
YOG INFRA Q1 2025 insights
THAILAND has announced ambitious plans for transport infrastructure development, including integration of e-vehicles for public and private use. Most of these projects are expected to be implemented via PPP route, and others via bilateeral arrangements with different countries. We also see a higher number of collaborations and joint ventures between local and international players for development of clean energy projects.
Read more about key developments in Infrastructure and PPPs in the country in our latest insight for the country.
JANUARY 2025
TRANSPORT DEVELOPMENT PLANS ANNOUNCED FOR 2025-2026 IN THAILAND
The government of Thailand has announced plans for an extensive transport infrastructure plan for 2025-2026, aiming to position the country as a regional transport hub. With a total budget of THB 253.45 Bn (USD 7.49 Bn), the initiative includes 223 projects for 2025 and 64 for 2026. The plan emphasizes improved connectivity, safety, and sustainability across road, rail, water, and air transport modes.
Key projects for 2025 include the Chalong Rat Expressway extension, 1,520 new electric buses, capped metro fares, and the development of three new Red Line suburban train routes. Water transport upgrades feature Laem Chabang Port Phase 3 and cruise terminals in Pattaya and Phuket. Air transport projects focus on airport expansions in Chiang Mai, Phuket, and Suvarnabhumi. The 2026 roadmap builds on these efforts with initiatives like Phase 2 of the Thai-China high-speed rail and expressway expansions, driving Thailand’s infrastructure development forward.
SRT PLANS TO MODERNISE TRAIN FLEET WITH NEW PASSENGER RAILCARS
The State Railway of Thailand (SRT) has announced plans to acquire 182 new passenger railcars, valued at THB 10.5 Bn (USD 310.41 Mn). The new railcars will include both sleeper and seated models, designed to improve passenger comfort and enhance transportation services. The project is set to conclude the bidding process by 2026, with deliveries expected to begin in 2028.
This initiative is aimed at boosting the competitiveness of Thailand’s rail transport and supporting the country’s tourism sector by offering more convenient travel options. The acquisition aligns with global standards and is expected to have a positive impact on the country’s transportation infrastructure. SRT’s collaboration with major suppliers, such as China Railway Rolling Stock Corporation (CRRC) in 2016, has previously contributed to successful outcomes, while efforts to develop domestic railcar manufacturing are also underway to support the national economy and create jobs.
REVIVING THE KLONG TOEI PORT DEVELOPMENT MODEL AS A MIXED-USE PROJECT
The Bangkok Port, or Klong Toei Port, managed by the Port Authority of Thailand (PAT), is a crucial hub for cargo transport by water. PAT plans to repurpose 2,353 rai (376 hectares) of port land for new uses, with an updated feasibility study required to align strategies with current needs.
Phase 1: Area C1 (500 rai) and Area C2 (217 rai), consisting of old buildings and open spaces without existing leases or concessions, ensuring minimal public disruption. The PAT has been tasked with completing a business model study for the development within six months, with consulting work expected to begin by January 2025. The site offers potential for diverse projects, including a cruise terminal, mixed-use complexes, shopping malls, and hotels, fostering interconnected activities.
Development zones:
Zone 1 (Commercial Zone): Maritime Business Centre (17 rai): Includes offices, training centres, exhibition and conference spaces, retail areas, and banks. Logistics and Distribution Hub (54 rai): Features warehouses, truck stations, and office buildings. This 126-rai area supports import-export trade, commercial offices, and financial institutions, benefiting both the port and nearby communities. Modern Business and Retail Hub (15 rai): Plans include exhibition centres and a smart community on a 123-rai site, featuring residential complexes for communities and government agencies.
Zone 2 (Core Business Zone): Redevelopment will reduce the current 943 rai to 534 rai. Planned projects include an export cargo station, duty-free zones, cold storage warehouses, halal facilities, truck management yards, and upgraded container terminals at both the western and eastern quays. Connectivity improvements include a link to the Bang Na-At Narong Expressway to streamline truck traffic.
Zone 3 (Bangkok Modern City): Located along the Chao Phraya River, this zone will transform into a landmark urban hub, emphasizing water-based tourism, public spaces, mixed-use buildings, shopping malls, hotels, and parking facilities. This comprehensive redevelopment aims to enhance the port’s role in commerce, tourism, and urban growth.
FEBRUARY 2025
PHASE 2 OF CHINA-THAILAND HSR APPROVED
The Government of Thailand has approved Phase 2 of the China-Thailand High-Speed Railway (HSR), a key project under the Belt and Road Initiative (BRI), which will connect Thailand to China via the China-Laos Railway. This 357-km extension from Nakhon Ratchasima to Nong Khai, with an estimated cost of THB 341.35 Bn (USD 10.11 Bn) is expected to begin construction this year and be operational by 2031. Once completed, the railway will enhance Thailand’s export capacity, attract foreign investment, and strengthen its position in the Trans-Asian Railway (TAR) network.
The project will integrate freight and passenger services, including a transit centre in Nong Khai for cross-border cargo transport. The HSR, Thailand’s first standard-gauge high-speed rail, will operate at speeds of up to 250 km/hr using Chinese railway standards. The first phase, a 253-kilometer link between Bangkok and Nakhon Ratchasima, is currently 35.74 % complete and set for full operation by 2028. Upon completion, travel time between Bangkok and Nakhon Ratchasima will drop from over four hours to just one hour.
Additionally, the expansion also aligns with broader BRI cooperation, further deepening China-Thailand economic ties amid growing trade, which reached USD 959 Bn in 2024.
EGCO GROUP TO INVEST THB 30 BN IN RE EXPANSION
Electricity Generating Public Company Limited (EGCO Group), a subsidiary of the Electricity Generating Authority of Thailand (EGAT), will invest THB 30 Bn (USD 8.89 Bn) in 2024 to boost its renewable energy (RE) portfolio by 1,000 MW. The company is focusing on biomass, solar, hydro, wind, and energy storage projects, with a goal to raise RE’s share from 21 % to 30 % by 2030. The Yunlin Wind Farm in Taiwan, with a 640 MW capacity, is set to become fully operational in 2025 after delays due to the pandemic and financial restructuring. EGCO is also expanding investments in Laos, the Philippines, Indonesia, Taiwan, South Korea, Australia, and the U.S.
THAI EXPRESSWAY AUTHORITY ANNOUNCES DEVELOPMENT OF ROAD NETWORKS
The Expressway Authority of Thailand (EXAT) has announced a significant investment of over THB 30 Bn (USD 892.57 Mn) in two major road projects, the Phuket Expressway and the Kaset Expressway. Looking ahead to 2025, EXAT aims to further develop its road network and boost revenue. The two flagship projects, with a combined investment exceeding THB 30 Bn (USD 8.89 Bn), are the third phase of the Northern Expressway (N2 section, Prasert Manukitch Road to the Outer Ring Road of Bangkok) and the Kathu-Patong Expressway in Phuket. The projects are expected to be presented to the Thai cabinet for approval in Q1 2025, with bidding to commence soon after. EXAT anticipates awarding contracts to private companies by October, with construction beginning in early 2026 and completion targeted for 2029.
The Phuket Expressway project will be implemented in two phases:
The first phase, a 3.98-kilometre tunnel section between Kathu and Patong, will be prioritised due to its complex construction and estimated four-year completion time.
The second phase, a 30.62-kilometre stretch from Mai City to Koh Kaew and Kathu, is expected to be submitted to the Cabinet in 2026, with completion also anticipated around 2029.
The Phuket Expressway will operate under a Public-Private Partnership (PPP) gross cost model, with the government collecting all tolls and compensating the private operator.
Beyond these new expressways, EXAT is also seeking private investment in commercial developments located beneath existing roads, such as a 4.5 rai (approximately 1.8-acre) site under the Ploenchit Expressway and a 60-rai roadside rest area development near Bang Pong. The latter project, with an estimated investment value of THB 2.32 Bn (USD 688.01 Mn), will operate under a PPP Net Cost model.
THAILAND MOT PLANS DUAL-TRACK RAILWAY AND MOTORWAY TO SOUTHERN BORDER
The Ministry of Transport (MoT) of Thailand has announced plans to develop a dual-track railway network and a new motorway to improve connectivity between Hat Yai and the Sadao border checkpoint.
The State Railway of Thailand (SRT) is preparing to seek cabinet approval for three railway expansion projects: a 168-km Chumphon-Surat Thani route worth THB 30.4 Bn (USD 903.09 Mn), a 321-km Surat Thani-Hat Yai-Songkhla route worth THB 66.27 Bn (USD 1.96 Bn), and a 45-km Hat Yai-Padang Besar route THB 104.46 Bn (USD 3.10 Bn). The SRT plans to seek 2025 budget funding for a 216-km Songkhla-Sungai Kolok-Narathiwat route worth, set to open in 2034.
The ministry is also considering investment for the M84 motorway, a THB 40.78 Bn (USD 1.21 Bn) project connecting Hat Yai to the Malaysia border, with construction expected between 2027 and 2030. The government is also progressing with a THB 9.3 Bn (USD 4276.27 Mn) Yai bypass project to ease traffic congestion.
THAILAND ADVANCES LAEM CHABANG PORT EXPANSION TO BOOST TRADE
The Government of Thailand is moving forward with an expansion of Laem Chabang Port to increase cargo handling capacity from 11.1 Mn twenty-foot equivalent unit (TEUs) to 18 Mn twenty-foot equivalent unit (TEUs) annually. The government met with Terminal Investment Limited (TiL) executives in Bangkok to discuss investment in new terminals E1 and E2, set for construction in 2025.
The project, part of Phase 3 of the port’s development, includes marine construction, railway expansion, and modernized terminal facilities. Terminal F1 is expected to begin operations by 2027, with F2 following in 2029. The initiative aims to position Thailand as Southeast Asia’s logistics hub, strengthening trade links with China and India. Sustainability measures, including digitalization and green port initiatives, are also key aspects of the plan.
Investment agreements for the E terminals are expected to be finalized by 2026. The expansion is set to enhance Thailand’s competitiveness in global trade, create jobs, and attract more shipping lines, reinforcing its role as a regional logistics center.
THAILAND EXPANDS BANGKOK’S RAIL NETWORK WITH NEW ELECTRIC TRAIN LINES
The Government of Thailand has taken a major step toward improving public transit in Bangkok by transferring control of three electric train projects from the Bangkok Metropolitan Administration (BMA) to the Ministry of Transport. The move aims to enhance citywide connectivity and reduce congestion.
The projects include the 19.7 km Silver Line connecting Bangna to Suvarnabhumi Airport, the 16.3 km Grey Line running from Wacharapol to Thonglor, and the 9.5 km Blue Line extension from Din Daeng to Sathorn. These additions will integrate with Bangkok’s existing 13-line, 276.84 km rail system, facilitating smoother transfers. The Ministry of Transport will now coordinate with the State Railway of Thailand to oversee project execution, with the new lines expected to be operational within five years.
BANPU NEXT ECOSERVE PARTNERS WITH SPI ENERGY TO LAUNCH JOINT VENTURE FOR ROOFTOP SOLAR PROJECTS
Banpu Next EcoServe Company Limited (BPNE), a subsidiary of Banpu Public Company Limited (BANPU), has announced a strategic partnership with US-based SPI Energy Investment Pte. Ltd. (SPI) to establish a new joint venture company, BNSP Company Limited. The collaboration aims to invest in and develop rooftop solar projects both in Thailand and internationally.
Under the agreement, Banpu Next EcoServe will hold a 51% stake in the joint venture, while SPI Energy will own the remaining 49%. The newly formed BNSP Company Limited will serve as a holding company to oversee the investment and development of renewable energy projects. In addition, the joint venture has established BNSP Smart Tech One Co., Ltd., a subsidiary with a registered capital of THB 3 Mn (USD 0.089 Mn). The capital is divided into 30,000 shares, priced at THB 100 per share (USD 2.98 per share). The subsidiary will focus on investing in and developing district cooling systems and rooftop solar projects, further expanding the companies’ footprint in the renewable energy sector.
MARCH 2025
EECPC TO DEVELOP KEY INFRASTRUCTURE PROJECTS WITH PASSENGER OPERATIONS SET FOR 2029
The Eastern Economic Corridor Policy Committee (EECPC) has confirmed that construction on three key infrastructure projects—a high-speed rail link, U-Tapao Airport expansion, and an aircraft maintenance centre—will begin in 2025, with operations set to start in 2029.
The high-speed rail project, valued at THB 271.766 Bn (USD 8.07 Bn), will connect Don Mueang, Suvarnabhumi, and U-Tapao airports via a 220 km route with nine stations. The updated contract, reflecting pandemic-related delays, is under final review and is expected to be signed this year, enabling construction to commence.
The U-Tapao International Airport and Eastern Airport City project, worth THB 218.701 Bn (USD 6.50 Bn), will expand terminal capacity to accommodate 60 Mn passengers annually. Preparations include hiring contractors for the second runway, upgrading cargo facilities, and developing the Eastern Aviation City.
The U-Tapao Aircraft Maintenance, Repair, and Overhaul (MRO) Centre, with a THB 10,000 Bn (USD 297.31 Bn) investment, will support up to 70 daily flights and handle 110 wide-body and 130 narrow-body aircraft annually. Initially planned as a Thai Airways-led joint venture, the project will now be opened for private sector bids, with Thai Airways and Bangkok Airways preparing a joint investment proposal.
THAILAND ALLOCATES THB 3.6 BN TO AVIATION MODERNISATION
The Government of Thailand will invest THB 3.6 Bn (USD 107.03 Mn) in aviation technology to expand air traffic control capacity and position itself as a regional hub by 2037. Aeronautical Radio of Thailand (AEROTHAI) will upgrade air traffic management at U-Tapao, Andaman, and Lanna airports, expected to be operational between 2029 and 2030. Each site will receive THB 1.2 Bn (USD 35.67 Mn) for air traffic control infrastructure to support increased flight capacity.
The funding will be secured through private loans, avoiding public debt. AEROTHAI will also implement digital tower systems at major airports by 2026 to improve safety and efficiency. Airports such as Suvarnabhumi, Don Mueang, and Phuket will be among the first to adopt the technology, while smaller airports like Narathiwat and Betong will receive remote tower systems in 2027. The modernization effort aims to double Thailand’s flight handling capacity from 1.2 Mn to 2 Mn annually.
THAILAND’S PAT LAUNCHES WATER TRANSPORT DEVELOPMENT PLAN
The Port Authority of Thailand (PAT) has unveiled a water transport infrastructure plan for 2025 to improve navigability and boost economic growth. The initiative includes surveys of 360 km of waterways, focusing on key routes such as the Nan, Mae Lao, and Kok rivers. With rising energy costs, PAT aims to enhance cargo and passenger transport efficiency while aligning with national competitiveness goals.
PAT will collaborate with local agencies to ensure safer and more sustainable water transport. Plans include dredging projects, digital monitoring systems, and depth management at ports like Phuket to accommodate larger vessels. Public engagement is encouraged through digital platforms, reflecting PAT’s commitment to transparency and long-term waterway management.
BERDE RENEWABLES AND PSS PARTNER TO ADVANCE SOLAR AND BATTERY STORAGE PROJECTS IN THAILAND
Philippines-based renewable energy firm Berde Renewables Inc. has announced a joint venture with Thailand’s Power Systems and Solutions Co. Ltd. (PSS) to accelerate the deployment of solar photovoltaic (PV), battery storage, and hybrid energy solutions across Thailand.
The collaboration will commence with 18.9 megawatt-peak (MWp) of operating assets, 30 MWp of under-construction projects, and a pipeline of 170 MWp. Over the next three years, the partners aim to develop, own, and operate 300 MW of renewable energy (RE) projects, catering to Thailand’s growing demand for clean energy in industrial, commercial, and grid-scale applications.
Berde Renewables stated that the partnership would leverage its clean energy technologies alongside PSS’ extensive expertise in engineering, power, renewables, and industrial services. By combining their capabilities in utility-scale projects, corporate power purchase agreements (PPAs), and grid-stabilizing solutions, the companies intend to expand operations across Southeast Asia.
The joint venture seeks to provide integrated solutions that enhance energy efficiency, optimize asset management, and extend the lifespan of key infrastructure within Thailand’s renewable energy market.
EGAT ISSUES INVITATION FOR BIDS FOR 205.40 MWP HYDRO-FLOATING SOLAR HYBRID PROJECT AT BHUMIBOL DAM, THAILAND
The Electricity Generating Authority of Thailand (EGAT) has announced Invitation for Bids No. EGAT 15/2566-BB-PV1 for the development of the Hydro-Floating Solar Hybrid Project at Bhumibol Dam Unit 1. This initiative aims to integrate a floating solar photovoltaic (PV) system with the existing hydropower infrastructure to enhance renewable energy production.
The Bhumibol Dam Floating Solar PV Power Plant project, located in the Sam Ngao District, Tak Province, Thailand, involves the design, procurement, construction, and commissioning of a floating solar photovoltaic (PV) power plant with a capacity ranging between 205.35 MWp and 205.40 MWp. The scope of the project includes the installation of crystalline silicon solar PV modules, a floating PV system, anchoring and mooring systems, as well as a 33 kV electrical system with transmission lines and associated control and monitoring systems. The estimated budget for the project is approximately THB 4.09 Bn (USD 118.38 Mn), which includes Value Added Tax (VAT) and other expenses. Additionally, bidders are required to provide a bid security amounting to THB 204.60 Mn (USD 6.04 Mn).
THAILAND MOVES FORWARD WITH USD 29 BN LANDBRIDGE PROJECT
The Government of Thailand has introduced draft legislation to establish a special economic zone in the southern provinces of Chumphon, Ranong, Suratthani, and Nakhon Si Thammarat, paving the way for the USD 29 Bn Landbridge project. The initiative aims to connect the Indian and Pacific Oceans via a 100 km transport link, bypassing the congested Malacca Strait.
The proposed law would create a commission, chaired by the prime minister, to oversee logistics, infrastructure, and financing for the project. The government is allowing foreign investors to hold more than 50 % ownership in joint ventures. The project, which includes deep-sea ports in Ranong and Chumphon costing THB 630 Bn (USD 18.61 Bn), is targeted for completion by 2030. It will follow a Public-Private Partnership (PPP) model, allowing the private sector to invest in construction and management under a 50-year concession.
List of Transactions - Thailand Q1 2025
Source: YOG INFRA, Public Information
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