The State Enterprise Policy Office (Sepo) has announced that eight government investment projects, totaling 100 billion baht, will be developed this year under public-private partnerships (PPP). Sepo is also preparing to propose eight additional joint venture projects for approval by the PPP committee. These projects are part of a larger pipeline of 127 projects worth a combined 1.16 trillion baht.
Tibordee Wattanakul, director-general of Sepo, explained that the private sector’s investment is necessary due to limited fiscal budget availability. He mentioned the Land Bridge megaproject as an example of PPP projects that will require private sector investment. The funding sources for these government investment projects include the state budget, government loans, and investments from the private sector through PPP arrangements.
Wattanakul emphasized the significant role that government investment projects play in driving economic expansion. He stated that every 100 billion baht investment leads to a 0.3% increase in GDP.
The 127 PPP projects planned under the 2020-27 plan consist of 93 new projects worth 311 billion baht, 20 high-priority projects worth 629 billion baht, and 14 regular projects worth 226 billion baht. These projects cover various sectors, including 16 rail infrastructure projects worth 579 billion baht, 26 air transport projects worth 470 billion baht, and 22 road transport projects worth 327 billion baht.
For fiscal year 2024, the state investment budget is set at 200 billion baht, with Sepo aiming for a 95% disbursement target.
It is worth noting that the government’s public debt burden increased due to the pandemic, leading the government to issue an emergency loan decree worth 1.5 trillion baht to mitigate the economic impact. As a result, the government’s public debt-to-GDP ratio exceeded the 60% ceiling. Consequently, the government increased the ceiling to 70% of GDP as of November 2023.
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