Download The Experience of Thailand with PPP Projects Financing

The Experience of Thailand
with PPP Projects Financing
Financing Sources for Public-Private Partnerships (PPPs)
25 November 2015
State Enterprise Policy Office (SEPO)
Ministry of Finance
The Need of Infrastructure Investment in Thailand
Government Budget
for Investment
Global Competitiveness
Index
THA
SIN
HKG
KOR
TWN
Vs
SOE
Investment
MAS
Billion Baht
438
GCI
Roads
Railroad
Port
Air Transport
Financial Market
Development
31
50
74
54
37
34
2
6
N/A
2
1
2
7
7
3
4
3
1
26
18
10
27
31
80
14
12
7
25
36
18
20
19
12
19
19
37
Source: The Global Competitiveness Report 2014-2015
Infrastructure Investment will boost
the competitiveness of the country
Total Infrastructure Investment in only Transport Sector
approx. 1.91 trillion baht (2015 – 2023)
State Enterprise Policy Office, Ministry of Finance, Thailand
403
371
304
293
227
180
237
184
210
208
209
174
227
223
174
214
138
2007 2008 2009 2010 2011 2012 2013 2014 2015
Gov't Agency Investment
SOE Investment
Source: State Enterprise Policy Office, Thailand (2015)
Bureau of the Budget, Thailand (2015)
The Comptroller General’s Department, Thailand (2015)
2
Infrastructure Financing in Thailand
Fiscal Sustainability Level
Sources and Limitations
Sources
Budget
SOE’s Income
Borrowing/Bond/
Debenture
Limitations
Limited to 20% of annual budget or
400,000 MB annually
SOE’s Income does not meet its rapid demand
of infrastructure investment
National Debt should not exceed the fiscal
sustainability level at 60% of GDP to ensure
stability and credibility
SOE Public Offering/
Privatization
Needs mature Industry structure and public
understanding
PPP
Alternative source for infrastructure investment
and increases private participation but may be
restricted in certain subsectors
Infrastructure Fund
Another solution to invest sustainably despite
higher cost of capital and more complexity
compared to plain debt financing
60%
50%
48.3%
51.0%
52.5% 53.2% 52.8% 51.8%
Public Debt/GDP
44.9%
40%
30%
20%
10%
0%
Interest Payment/GDP
7.1%
7.4%
9.1%
9.8% 10.3% 10.5% 10.5%
6.8%
7.3%
7.5%
7.5%
2018
2019
2020
2021
5.0%
5.1%
6.1%
2015
2016
2017
Principle Payment/GDP
Source: Public Debt Management Office, Thailand (2015)
State Enterprise Policy Office, Ministry of Finance, Thailand
3
Criteria for Financing Decision
High Financially Viable : SOEs
Expressway
SOE Revenue/
Borrowing
Airport
Project
Finance
State Enterprise Policy Office, Ministry of Finance, Thailand
Electricity
PPPs
Energy
Infrastructure
Fund
4
Criteria for Financing Decision
Low Financially Viable with High Economic Return : Government
Rapid Transit System
Budget
Public Health
Government
Borrowing
State Enterprise Policy Office, Ministry of Finance, Thailand
Road System
Education
PPPs
Gov’t Subsidy
Co-investment
5
PPP Experience in Transportation Sector
20 transportation projects have been delivered under PPP scheme
Road
• The Second Stage
Expressway System
and its Extension
(Expressway
Authority of
Thailand )
Railroad
• The MRTA Initial
System Project
Chaloem
Ratchamongkhon
Line (Metropolitan
Rapid Transit
Authority)
• The Ladkrabang
Inland Container
Depot (State Railway
of Thailand)
State Enterprise Policy Office, Ministry of Finance, Thailand
Water
Transport
• The Container
Terminal B5 at
Laem Chabang Port
(Deep-Sea Port)
(Port Authority of
Thailand)
Air Transport
• The Ground
Equipment and
Maintenance Facility
at Suvarnabhumi
Airport
• The Aviation Fuel
Pipelines with Hydrant
System Project
(Airports of Thailand
Plc.)
6
Tentative Financing Sources
Financing
Source/Sector
Metropolitan
Mass Transit
Provincial Rail
Network
Highways
/Motorway
Water
Transport
Annual Budget
 Land
acquisition
 Consultants
 Land
acquisition
 Consultants
 Land
acquisition
 Consultants
 Land acquisition
 Consultants
 Construction
Government
Borrowing
 Civil Works
 Civil Works
 Signaling
System
 Civil Works
 Civil Works
(Large Projects)
SOE Revenue
& Borrowing
 Rolling Stock
 Signaling
System
 Rolling Stock
 Rolling Stock
 Rolling Stock
PPPs
Infrastructure
Funds
State Enterprise Policy Office, Ministry of Finance, Thailand
 Equipment and
tools
 Civil Works
 Fee collection
system
 Maintenance
Air
Transport
 Consultants
 Civil Works
 Equipment and
tools
7
PPP Strategic Plan 2015 - 2019 (2558 – 2562 B.E.)
Main Purpose : “being the gov’t direction for types of public investments which private participation during 5 years (2015-2019)”
Estimated
Type of Subsectors
Connectivity and Dependency among Subsectors
Investment Cost
Group 1 Require private sector
investment (Opt-out)
1. Urban Mass Transit System
2. Toll Roads in Urban Areas
3. Logistics Ports
4. High Speed Rail System
5. Telecommunication Network
6. Broadband Internet
Encourages participation
Group 2 and investment from
private sector (Opt-in)
1. Intercity Toll Roads
2. Logistics Depots
3. Common Ticketing System
4. Airport Services
5. Water Treatment Management
6. Irrigation System
7. Waste Management
8. Education Infrastructure
9. Hospitals and Public Healthcare Services
10. Medical Supplies and Equipment
11 Science and Technology Infrastructure
12. Infrastructure related to Digital Economy
13. Convention Centers
14. Accommodations for handicap, elderly,
and poor people
Approximately
1.41 Trillion Baht
• Between projects within the same subsector
• Between projects within subsectors under the same higher level sectors
• Between projects within subsectors under different higher level sectors
Project Pipeline (66 Projects)
Water Treatment and Irrigation System (3.90%)
11 projects, 61.4 Billion Baht
Convention Center (0.17%)
1 project, 2.7 Billion Baht
Accommodations for
handicap, elderly,
and poor people
1 project, N/A Baht
Education, Public Health
and Science, Technology
and Innovation (4.58%)
19 projects, 72.2 Billion Baht
Urban Rail Transit
System, 44.22%
Telecommunication (4.28%)
5 projects, 67.6 Billion Baht
Transportation (874.07%)
29 projects, 1.37 Trillion Baht
High Speed Rail
17.02%
Urban
Areas
Common Ticketing
Toll Roads
System 0.07%
in Urban Areas
0.93%
Logistics
Depots 1.64%
Estimated Investment Cost
1.58 Trillion Baht
As of 24 Sep, 2015
Logistics
Ports 9.63%
Intercity
Intercity Toll
Roads
26.49%
8
New Financing Sources : Infrastructure Fund
BTSGIF
ABPIF
15.7%
28.6%
33.3%
46.5%
~ 62,510 MB
42.7%
8.4%
Sponsor
Insurance
Foreign
Other companies
Retail
~ 6,300 MB
8.9%
EGATIF
TRUEIF
16.1%
25%
39%
~ 21,480 MB
29.5%
33.2%
~ 58,080 MB
21%
15%
State Enterprise Policy Office, Ministry of Finance, Thailand
11.6%
5.0%
20.7%
9
Thank you
State Enterprise Policy Office (SEPO)
Ministry of Finance, Thailand