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Infrastructure & PPPs in Thailand - Q4 2021 Update

THAILAND saw a marked increase in urban and social infra PPPs in last quarter of 2021, partly driven by the need to build back better post COVID-19, with help of private sector participation. The country announced first hospital PPP as part of EEC, and there are upcoming projects in water and waste management sectors as PPPs which were traditionally driven by transport sector.

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

 

October 2021

IEAT TO CONSTRUCT AN INDUSTRIAL ESTATE IN THE EASTERN ECONOMIC CORRIDOR

The Industrial Estate Authority of Thailand (IEAT) has announced plans to build a THB 1.76 Bn industrial estate, called Apex Green Industrial Park, in Chachoengsao to support high-tech industrial growth projects in Thailand’s Eastern Economic Corridor (EEC). The agency will partner will Apex Industrial Park Company to develop the new industrial estate on 350 hectares of land.

The biggest component of the budget worth THB1.34 Bn, approximately 88 per cent of the total, will be allocated for infrastructure development of the industrial park. The estate will also consist of green and buffer zones. The land development is planned to be finished in two years, with commercial operations beginning in 2023.


GOVERNMENT OF THAILAND TARGETS CARBON-NEUTRALITY BY 2065

The Government of Thailand is moving toward a low carbon economy with a goal of achieving carbon neutrality by 2065. The Ministry of Natural Resources and Environment (MNRE), as well as the Ministry of Energy (MOE), have developed plans to make the country carbon neutral by 2065.

The government will also assist the country’s private sector in transitioning to a low carbon economy and ensuring that the shift has minimal impact. The government is also developing a long-term strategy to attain net-zero emissions, with the energy and transportation sectors at the forefront of the effort to reduce carbon emissions.

One of the most important initiatives under the government’s plans is to encourage the expansion of the electric vehicle (EV) manufacturing business, with the goal of having 15 million green automobiles on the road by 2030.


November 2021

THAI CHINESE CONSORTIUM WINS USD 927MN THAILAND PORT PROJECT

A consortium led by Thailand's Gulf Energy Development has signed a contract with the Port Authority of Thailand to develop and operate Phase 3 of the Laem Chabang deep seaport in Chonburi province. The project will cost an estimated THB 30.9Bn (USD 927Mn) and will be developed by GPC International Terminal Company, a consortium owned by Gulf Energy (40%), Thai government-run PTT Tank Terminal (30%), and a unit of China Harbour Engineering (30%).

The project will be financed by up to 75% debt and the rest in equity, and the developer group is negotiating with Thai banks as well as international lenders for the debt. It is likely to select a bank by the end of 2022. GPC International will develop Terminal F of the port, which is expected to handle containers of at least 4 million TEU (twenty-foot equivalent unit) each year. GPC International will operate the seaport for 35 years and provide services covering mooring, docking, loading and unloading of goods for container vessels.

Terminal F1 - or the first phase of the project - is scheduled to begin construction in 2023 and commence commercial operation in 2025. The second phase will start construction in 2027 and become operational in 2029.


WHA GROUP FORMS PARTNERSHIP FOR THAI WASTEWATER FACILITY

Bangkok-listed WHA Utilities and Power (WHAUP) has partnered with Asia Industrial Estate (AIE) to launch a wastewater treatment project in an industrial park. The joint venture will process and distribute treated water to users in the AIE’s Map Ta Phut property.

WHAUP will hold a 60% stake in the development with AIE owning the balance. The estate's shareholders are City Realty, Sophonpanich family investment companies, and Bangkok Bank. Power plants and petrochemical factories in the area are expected to be key customers.

The company currently provides treated water to ten industrial parks in Thailand and one in Vietnam.


THAILAND PREPARES HOSPITAL PPP IN EASTERN ECONOMIC CORRIDOR

Thailand is set to launch a 120-bed hospital PPP in 2021 as part of its Eastern Economic Corridor (EEC) development program. The project will involve the construction of the hospital in Pluak Daeng district in Rayong province. The agency oversees the development of three Thai provinces as a new industrial and transportation hub.

The feasibility study for the project is likely to be completed in May 2022, and the launch of the tender is slated for July 2022. The project will cost up to THB 1Bn (USD 30Mn) and will service both patients covered by the country’s public healthcare scheme and private insurance. It will have a concession period of 30 years.

Governments in Southeast Asia are seeking to attract private capital in the healthcare sector. Philippines is set to launch a healthcare PPP in April 2022, while Indonesia plans to invite investors to develop a USD 215Mn healthcare special economic zone.


MRTA TO INVITE BIDS FOR PURPLE LINE EXTENSION IN THAILAND

The Mass Rapid Transit Authority (MRTA) has issued a request for tender submission for the extension of Thailand’s Purple Line electric rail network, which will run between Tao Poon and Rat Burana. Under the THB78Bn railway extension project, the existing Purple Line will be extended by 23 km. The extension will be completed in six phases, the first of which will see the line extended by three stations, or 4.8 km, beyond its current terminus in Tao Poon to the Thailand National Library. Three further stations will be built between the National Library of Thailand and Phan Fa in the second phase, covering a distance of 2.4 km, while three more stations will be constructed between Phan Fa and the Phra Phuttha Yodfa Bridge in the third phase.

The line will be expanded to Dao Khanong and Khru Nai in the fourth and fifth phases, respectively, while the sixth phase will focus on the development of a railway signalling system along the route. The line will run from Nonthaburi to Samut Prakan, passing through the districts of Thon Buri and Phra Nakhon. Construction work is set to commence in 2022 with the extension scheduled to open to traffic in 2027.


BANGKOK MASS TRANSIT AUTHORITY TO UPGRADE CURRENT BUS FLEET TO EVS

The Bangkok Mass Transit Authority (BMTA), a state-owned bus operator, has announced plans to replace the city’s fossil fuel-powered buses with a fleet of electric vehicles (EV). The agency will rent the electric buses from private operators, instead of purchasing them, to reduce maintenance costs.

BMTA also has plans to install automated ticket vending machines at all bus stops in Bangkok. Currently, BMTA kiosks at major bus stops sell monthly tickets that can be purchased during rush hour.

The BMTA operates a fleet of 2,888 buses that service 116 routes in the capital city of Thailand.


THAILAND STARTS OPERATING SIRINDHORN FLOATING SOLAR FARM

A large floating hybrid solar power plant, on Sirindhorn Reservoir in Ubon Ratchathani province, with a capacity of 45 MW, have started its operation as pressure mounts on climate action. It is installed on the surface of the water using 144,000 separate solar panels, the equivalent of 100 football fields.

The emerging technology used in a project is showing promise and generating interest throughout Southeast Asia. The 45 MW of peak power the project can produce complements the existing dam operations, which can generate an additional 36 MW, and provide electricity across three provinces in eastern Thailand. This project in Ubon Ratchathani province helps with one of the biggest issues associated with solar power infrastructure development, the scarcity and cost of land. The country is planning another small floating solar plant in northern Thailand.


December 2021

TPIPP OUTLINES USD 147MN PLAN TO STOP USING COAL

TPI Polene Power (TPIPP), Thailand’s largest waste-to-energy operator by capacity, plans to spend THB 5Bn (USD 147Mn) to transform existing coal-fired facilities into plants powered with refuse-derived fuel (RDF) by 2025. The Bangkok-listed company will invest THB 4Bn to restructure its two coal-fired assets, while the balance will be spent on RDF facilities.

TPIPP plans to increase its production of RDF to 11,700 tonnes per day by 2025 from the current 7,200 tonnes. TPIPP has power generation capacity of 440 MW, half of which comes from coal-fired plants. The firm is set to reach 582 MW of energy output in 2025 and that it is planning to invest THB 4bn throughout 2022 and 2023 to develop three waste-to-energy projects in the Songkhla, Nakhon Ratchasima and Saraburi provinces. It will raise debt from banks to fund the new projects.

TPI Polene, a Thai cement and petrochemicals manufacturer, owns more than 70% of TPIPP, and is the largest buyer of its energy output.

 

List of Transactions - Thailand Q4 2021


List of Upcoming PPP Projects - Thailand Q4 2021


Source: Inframation, YOG INFRA analysis

 

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