Infrastructure & PPPs in Thailand - Q4 2025 Update

YOG INFRA
Jan 8
14 min read

YOG INFRA Q4 2025 insights

Thailand is undergoing a major infrastructure overhaul, including an initiative to buy back four urban rail concessions and convert them from Public Private Partnership (PPP) Net Cost models to 30-year O&M contracts. Simultaneously, the transport sector is pivoting to green energy with the deployment of 1,520 electric buses and 1,000 battery-swapping trucks by 2026, alongside a high-speed rail expansion. Investments in renewable energy, including wind, solar, and industrial decarbonisation solutions, are expanding clean power capacity and reducing emissions. Digital infrastructure is also strengthening through data centres, cloud services, and AI-enabled solutions.

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

OCTOBER 2025

THAILAND PLANS TO CONVERT 1,520 PUBLIC BUSES TO EVs

The Government of Thailand announced a major initiative to convert 1,520 conventional buses into electric vehicles (EVs) under the Bangkok Mass Transit Authority (BMTA) modernisation programme. The plan aims to reduce emissions, cut operational costs, and enhance the city’s public transport system.

Currently, BMTA operates 2,883 buses, including 1,520 conventional and 1,363 air-conditioned vehicles, carrying 500,000–600,000 passengers daily. The government provides an annual subsidy of THB 885 Mn (USD 28.13 Mn) to maintain affordable fares. The EV conversion is projected to save THB 1.44 Bn (USD 45.6 Mn) annually, with fuel costs dropping by 70% and maintenance costs largely eliminated. Fare adjustments will be reviewed once the programme progresses.

The first phase of EV buses is expected to arrive by September 2026, coinciding with the rollout of real-time fleet management systems to improve punctuality and reduce service gaps. BMTA is also expanding modern technology adoption, including GPS tracking integrated with the BMTA Bus mobile app for live service updates and broader electronic payment systems for passenger convenience. This move represents a significant step toward sustainable urban mobility in Bangkok, supporting the government’s vision of a low-emission, technology-driven public transport network.

AOT PUSHES SUVARNABHUMI EXPANSION

Airports of Thailand (AOT) is leading efforts for the expansion of Suvarnabhumi Airport. The initiative, called East Expansion Project, worth THB 12 Bn (USD 38.14 Mn), will add 81,000 square metres of terminal space and increase the airport’s annual capacity by 15 million passengers. The project construction is slated to begin in 2026 with completion targeted for 2030. Once operational, Suvarnabhumi’s total handling capacity will rise from 65 million to 70–80 million passengers per year.

The agency also announced plans to proceed with the South Terminal development, replacing the earlier SAT-2 plan with a larger, integrated terminal covering 1.59 million square metres. The upgraded terminal will enable Suvarnabhumi to handle 120 million passengers annually, accommodate 120 flights per hour, and provide 160 contact gates, reinforcing Thailand’s status as a key regional aviation hub.

GULF, MICROSOFT TEAM UP FOR DATA CENTRE VENTURE

Gulf Development Plc has forged a strategic partnership with Microsoft for data centre services and to advance cloud and artificial intelligence (AI) growth in Thailand. This partnership combines Gulf's strength and expertise in power generation and renewable energy, which can support growing demand for clean energy among data centres, with Gulf affiliate Advanced Info Service (AIS), a leader in communication and telecom services. Microsoft is a leading developer of platform technologies and tools powered by AI, delivering diverse innovations.

This collaboration is meant to enhance Thailand's cloud and data centre capabilities, laying a strong foundation for long-term technical and business cooperation between the two organisations, driving sustainable growth of the country's digital infrastructure and accelerate its sustainable growth towards becoming the regional digital hub. GSA Data Center 02 Co Ltd (GSA02), a Gulf subsidiary, signed an agreement to provide data centre services to Microsoft's cloud region for in-country data processing and storage in Thailand.

THAILAND’S DRR PRIORITISES TWO MAJOR BRIDGE PROJECTS IN THE SOUTH

The Department of Rural Roads (DRR) has been instructed to fast-track the disbursement of its THB 53 Bn (USD 1.68 Bn) budget for fiscal year 2026, with a focus on two key bridge projects in southern Thailand aimed at improving connectivity and regional economic growth.

The DRR plans to allocate at least 50% of its budget by mid-fiscal year, prioritising projects that support the movement of agricultural goods from rural areas to urban markets. The two major bridge investments, valued at THB 6.5 Bn (USD 206 Mn), include the THB 4.84 Bn (USD 153 Mn) Songkhla Lake Bridge linking Krasae Sin district in Songkhla with Phatthalung’s Khao Chaison district, and the THB 1.85 Bn (USD 58.6 Mn) Koh Lanta Bridge in Krabi province. Funding for both projects will come from World Bank loans (70%) and state funds (30%), with contracts expected to be signed by the end of the year following the completion of technical and financial assessments.

The initiatives form part of the broader Southern Economic Corridor (SEC) infrastructure plan, which seeks to connect the Gulf of Thailand and the Andaman Sea through the Land Bridge mega-project.

NOVEMBER 2025

THAILAND’S SCG SWITCHES ON SOUTHEAST ASIA’S FIRST INDUSTRIAL HEAT BATTERY, POWERED BY GRID AND FLOATING SOLAR

Rondo Energy and Siam Cement Group (SCG) have commissioned Southeast Asia’s first industrial heat battery system, a 33 MWh installation now operational at SCG’s cement facility in Saraburi Province, Thailand. The project marks a major milestone for industrial decarbonisation, integrating both grid electricity and power from a nearby floating solar farm to charge the thermal storage system. The system is the world’s only heat battery currently driving a steam turbine, delivering 2.3 MW of continuous high-pressure steam. Although the technology provides thermal energy only – not electricity – the battery’s ability to convert renewable and grid power into round-the-clock steam positions it as a clean replacement for fossil fuel–based heat in cement production.

The Thailand deployment represents three major achievements for the company: the first unit under its modular sizing strategy, its first project in Southeast Asia, and the only heat battery globally producing steam for electric power generation purposes.

SRT SIGNS MOU TO ADVANCE THAI–CHINA HSR PHASE 2

The State Railway of Thailand (SRT) has signed a memorandum of understanding (MOU) with the Engineering Institute of Thailand (EIT) and the Rail Technology Research and Development Agency (RTRDA) to support Phase 2 of the Thai–China high-speed rail project. The agreement commits to maximising the use of domestically produced construction materials in line with the Transport Ministry’s “Thailand First” policy, while ensuring quality, efficiency, and safety.

Phase 2 of the Thai–China high-speed rail project covers the 357.12 km Nakhon Ratchasima–Nong Khai section, including five stations: Bua Yai, Ban Phai, Khon Kaen, Udon Thani, and Nong Khai. The MOU establishes collaboration across SRT, EIT, and RTRDA in academic cooperation, research, planning, and development of civil engineering standards. Supplementary civil-works requirements beyond standard Chinese high-speed rail specifications are included to guarantee construction quality and efficiency while stimulating local industry.

The Transport Ministry approved Phase 2 in Q1 2025, enabling land acquisition, asset compensation, and civil works within the THB 341.351 Bn (USD 10.58 Bn) budget. SRT plans to issue tender documents in 2026 and begin construction the same year, with service expected by 2031. This initiative aims to strengthen Thailand’s domestic engineering sector and support the country’s position as an ASEAN transport hub.

THAILAND LAUNCHES COMMUNITY SOLAR POWER INITIATIVE

Thailand’s National Energy Policy Council (NEPC) approved the preliminary framework for the implementation of the “Community-based Solar Power Generation Project”, which is part of Thailand’s Ministry of Energy’s “Quick Big Win” policy initiative. This project aims to enhance local energy security and reduce electricity costs for local communities nationwide. The Thai government, through the Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority (MEA), intends to offtake electricity from power producers and sell it to local communities at a predetermined price—tentatively, the selling price is equivalent to the purchasing rate of THB 2.25 per kWh (USD 0.0704 per kWh) (plus grid service costs). This selling price is lower than the current PEA/MEA’s prevailing standard progressive rate of THB 2.3488 – THB 4.4217 per kWh (USD 0.0732 - USD 0.1379 per kWh).

The other initiative under the Quick Big Win policy is the push for the Direct PPA and Third-Party Access pilot program to allow for the Thailand Board of Investment (BOI)-approved data centers to procure electricity directly from renewable energy power producers through the government utility grids.

GC MAINTENANCE AND ENGINEERING AND PEAK ENERGY SIGN PPA FOR 500 KWP ROOFTOP SOLAR AT RAYONG FACILITY

GC Maintenance and Engineering Company Limited (GCME), an engineering solutions leader within the PTT Global Chemical group, and Peak Energy, leading clean-energy platform operating across Asia-Pacific, today announced the signing of a Power Purchase Agreement (PPA) for a 500 kWp rooftop solar project at GCME’s facility in Rayong, Thailand.

Under the long-term agreement, Peak Energy will design, finance, install, and operate the rooftop photovoltaic system. Once commissioned, the project is expected to generate approximately 730 MWh/year of clean electricity per year, avoiding 350 tonnes of CO₂ annually. The system is structured as an on-site Power Purchase Agreement (PPA), enabling GCME to purchase renewable electricity with no upfront CAPEX improving cost predictability during solar hours and supporting corporate carbon-reduction objectives.

SRT PREPARES TO ADVANCE THREE SOUTHERN DUAL-TRACK RAILWAY SECTIONS UNDER PHASE 2

The State Railway of Thailand (SRT) is preparing to seek cabinet approval next month for three additional dual-track railway sections under Phase 2 of the national programme. If approved, SRT will begin the route-by-route tendering process—spaced two months apart—to minimise bid-rigging risks. The three sections have a combined estimated cost of THB 100 Bn (USD 3.17 Bn).

The proposed works include the 168 km Chumphon–Surat Thani section THB 30.4 Bn (USD 963.68 Mn), the 321 km Surat Thani–Hat Yai Junction–Songkhla section THB 66.27 Bn (USD 2.10 Bn), and the 45 km Hat Yai Junction–Padang Besar section THB 7.77 Bn (USD 246.30 Mn). Budget Bureau, Ministry of Finance, and NESDC approvals have been secured. Tendering will begin with Chumphon–Surat Thani, followed by Hat Yai Junction–Padang Besar, while the Surat Thani–Hat Yai–Songkhla route will proceed last due to land encroachment issues along a 20 km section of the Hat Yai–Songkhla line.

These works form part of seven routes planned under Phase 2. The Khon Kaen–Nong Khai section, approved in April, is currently underway. Remaining routes—Pak Nam Pho–Den Chai (281 km); THB 81.1 Bn (USD 2.57 Bn), Chira Junction–Ubon Ratchathani 308 km; THB 44 Bn (USD 1.395 Bn), and Den Chai–Chiang Mai 189 km; THB 68.2 Bn (USD 2.16 Bn)—are expected to advance in early 2026 pending EIA and proposal revisions. Phase 1 dual-track infrastructure is in operation, though signalling works are still being completed.

DECEMBER 2025

BANGKOK TO EXPAND INNER-CITY WATER TAXI NETWORK

The Bangkok Metropolitan Administration (BMA) has announced plans to expand the city’s Water Taxi network and renovate inner-city canals as part of an effort to improve water-based transport and enhance urban tourism. Under the 2026 budget, four permanent piers will be constructed along Klong Bang Lamphu, with contractor selection expected by January 2026.

The project includes upgrading canal-side infrastructure and expanding the current two-boat pilot fleet to eight electric Water Taxis. The existing service links Klong Phadung Krung Kasem and Klong Bang Lamphu, operating with eight-passenger electric boats at an average speed of 12 km/h and serving key destinations such as Hua Lamphong, Khao San Road, Bobae Market and Phra Sumen Fort. A second planned route will operate between Klong Ong Ang and Klong Saen Saep, passing major commercial areas including Siam Paragon and CentralWorld.

The expansion forms part of the BMA’s wider canal redevelopment initiative, which aims to strengthen transport connectivity, promote community-based tourism, and enhance environmental management in Bangkok’s historic districts. The programme includes improving waste management, restoring traditional floating-market activities and upgrading public-safety systems.

GULF DEVELOPMENT COMMISSIONS TWO UTILITY-SCALE SOLAR FARMS IN THAILAND

Gulf Development Public Company Limited has commenced commercial operations of two utility-scale solar power projects in Thailand, adding a combined contracted capacity of 109.7 MW to its renewable energy portfolio.

The two projects have a combined installed capacity of 145 MW. The first, developed by Saeng Pat Phalangngan Company Limited in Uttaradit province, has a contracted capacity of 58.7 MW and an installed capacity of 77 MW. The second, operated by Thai Pat Solar Company Limited in Surin province, has a contracted capacity of 51.0 MW with an installed capacity of 68 MW. Electricity from both plants is supplied under long-term power purchase agreements.

The projects were awarded under Thailand’s Feed-in-Tariff programme and operate under 25-year PPAs with EGAT at a tariff of THB 2.1679 per kWh (USD 0.069 per kWh). The new capacity will help reduce fuel price volatility in the power system and support Thailand’s clean energy transition and net-zero emissions goals. The projects form part of GRE’s wider renewable pipeline, which includes several solar plants commissioned in 2024 and additional projects scheduled to come online in 2025.

THAILAND’S MOT PLANS THB 160 BN BUYBACKS OF FOUR BANGKOK RAIL LINES UNDER 30 YEAR O&M MODEL

Thailand’s Ministry of Transport (MoT) is preparing a plan to buy back concessions for four major electric rail lines in Bangkok at an estimated cost of THB 160 Bn (USD 5.13 Bn). The buyback would transfer ownership of the lines to the Mass Rapid Transit Authority of Thailand (MRTA) and convert existing Public-Private Partnership (PPP) Net Cost concessions into 30-year operations and maintenance (O&M) contracts.

The first phase covers the BTS Green Line (Sukhumvit and Silom core sections), MRT Blue Line, Pink Line (Khae Rai–Min Buri), and Yellow Line (Lat Phrao–Samrong). Under the proposed restructuring, MRTA would own all infrastructure and assume fare revenue risk, while private operators would be retained under fixed-fee O&M contracts. This shift is intended to enable fare integration, cap fares in line with the government’s THB 40 per day (USD 1.28 per day) policy and support the rollout of a seamless common ticket across the network.

The Green Line concessions held by Bangkok Metropolitan Administration and BTS Group expire between 2029 and 2042, while the Blue Line concession with BEM runs until 2049. The Pink and Yellow monorail lines, operated under Public Private Partnership (PPP) Net Cost models by Northern Bangkok Monorail and Eastern Bangkok Monorail respectively, have concession terms extending to 2053. The Transport Ministry has indicated that early discussions with BTS Group and BEM show no objection in principle to the single-ownership model, subject to protection of operational continuity and commercial rights.

To finance the buyback without increasing headline public debt, the ministry is studying options including the creation of an infrastructure fund and staged payments linked to new long-term O&M contracts. Payments could be spread over 20–30 years, alongside O&M fees, allowing existing operators to continue running services while revenue rights revert to the state. The reform is positioned as a structural step toward lower fares, integrated ticketing, and long-term consolidation of Bangkok’s urban rail system under MRTA ownership.

WSOL AND FPT TO EXPAND DIGITAL INFRASTRUCTURE IN THAILAND

Vietnam-based IT services provider FPT, through its Thailand subsidiary, has signed a strategic memorandum of agreement (MOA) with WSOL Public Company Limited to jointly develop and deploy digital technology solutions across Thailand. The agreement establishes a framework for collaboration in delivering enterprise and public-sector digital transformation projects, leveraging FPT’s technology capabilities and WSOL’s nationwide market presence.

Under the partnership, FPT will provide end-to-end technology expertise covering core platforms, cloud computing, artificial intelligence, cybersecurity, enterprise systems, and digital infrastructure. WSOL will contribute its extensive nationwide network of service touchpoints across payment systems, financial services, merchant infrastructure, and multi-industry partnerships, enabling large-scale market deployment and commercialisation of solutions.

The collaboration will initially focus on financial and data-driven solutions, with scope to expand into sectors such as banking and finance, energy, telecommunications, retail, manufacturing, and public-sector services. The partnership is positioned to support Thailand’s long-term digital infrastructure development and accelerate the adoption of advanced digital technologies across both public and private sectors.

THAILAND TO SIGN CONTRACT FOR U-TAPAO AIRCRAFT MRO CENTRE

Thailand is set to sign the main contract for its planned aircraft maintenance, repair and overhaul (MRO) centre at U-Tapao Airport in Q1 2026, marking a major milestone for one of the country’s flagship aviation infrastructure projects. The development is intended to strengthen Thailand’s position as a regional aviation hub under the Eastern Economic Corridor (EEC) programme.

The MRO facility will be located on approximately 210 rai (around 84 acres) within the EEC area at U-Tapao and will be developed with Thai Airways International as the project operator. Under the proposed structure, Thai Airways will receive operating rights for the entire site and will establish a subsidiary to manage the business. The operator may directly run the facilities, form joint ventures with specialised partners, or lease space to private operators for activities such as wide-body aircraft maintenance and other specialised services.

The centre will be capable of servicing aircraft from multiple manufacturers, including Airbus and Boeing, and will not be restricted to a single aircraft brand. The land lease period is set at 50 years, with rental terms designed to encourage early investment. Revenue sharing with the state will begin in the fifth year of operations, starting at 3% for years 5 to 10, increasing to 5% for years 10 to 15, and rising to 7% from year 15 onwards.

WORLD BANK APPROVES USD 140.76 MN THAILAND TRANSPORT AND DOLPHIN PROJECT

The World Bank’s board has approved a USD 140.76 Mn package for the Thailand Resilient Transport and Irrawaddy Dolphin Conservation Project (TRIP), aimed at strengthening flood- and storm-resilient transport links while supporting conservation efforts for a critically endangered Irrawaddy dolphin sub-population in Songkhla Lake.

The project combines infrastructure development with biodiversity protection, including the construction of two bridges and support for Thailand’s newly approved Irrawaddy dolphin conservation plan, which targets dolphins in the upper part of Songkhla Lake, north of one proposed bridge site.

The programme is expected to boost job creation and economic opportunities for about 350,000 people. A separate USD 4 Mn PROBLUE grant, administered by the World Bank, will co-finance implementation of the dolphin conservation plan and help Thailand access international best practices.

U POWER AND WHALE LOGISTICS TO DEPLOY 1,000 BATTERY-SWAPPING ELECTRIC TRUCKS IN THAILAND

U Power Limited has entered into a strategic partnership with Whale Logistics Group to deploy up to 1,000 battery-swapping electric truck tractors in Thailand, marking U Power’s commercial entry into the Southeast Asian market. The first batch of vehicles is scheduled for delivery in April 2026, with phased deployment planned thereafter.

The rollout will begin with an initial delivery of 30 electric truck tractors, forming the foundation for large-scale adoption across Thailand’s heavy-duty freight sector. Deployment will focus on key logistics hubs, including the Eastern Economic Corridor and the Laem Chabang port area, where demand for high-utilisation commercial transport is concentrated. Whale Logistics plans to integrate the electric tractors into its warehousing and yard operations, replacing diesel-powered fleets with zero-emission alternatives.

The partnership is centred on U Power’s battery-swapping technology, which enables rapid energy replenishment and minimises vehicle downtime compared with conventional charging models. The system is supported by AI-driven energy management tools designed to optimise grid interaction, balance peak and off-peak loads, and improve overall fleet operating efficiency. The project is positioned as a scalable model for expanding battery-swapping electric truck deployments across the wider ASEAN region, supporting Thailand’s green logistics and decarbonisation objectives.

PHATTHALUNG AIRPORT PROJECT ADVANCES WITH NEW FUNDING FOR DESIGN AND ENVIRONMENTAL STUDIES

Thailand’s Department of Airports has secured THB 42.69 Mn (approximately USD 1.23 Mn) in funding for fiscal years 2026–2027 to advance the Phatthalung Airport project, enabling detailed design work and additional environmental assessments. The allocation will support studies and engineering designs for core airport infrastructure, including the runway, taxiways, aircraft apron, and associated facilities, alongside further Environmental Impact Assessment activities.

The project is being progressed based on a feasibility study completed in 2021 and submitted to the Ministry of Transport in 2022. The study estimated that, in its initial phase, the airport could handle more than 214,000 passengers per year and around 1,400 flights annually, reflecting rising air travel demand in Phatthalung and neighbouring provinces.

Economic analysis from the feasibility study indicated strong project viability, with an internal rate of return of 14.7% and a benefit-to-cost ratio of 1.26. These results support the airport’s potential role in boosting regional tourism, logistics activity, and broader economic development in Thailand’s lower southern region.

During preparatory works, authorities identified that the originally proposed airport site overlaps with land currently used as a rice research centre. To avoid disruption, Phatthalung Province has proposed relocating the airport to an alternative site and has informed the Department of Airports that procedures to secure replacement land are now underway. The current phase of studies and coordination with national and local agencies is a key step toward improving regional air connectivity and reducing reliance on airports in other provinces.

List of Transactions - Thailand Q4 2025

Source: YOG INFRA, Public Information

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