Thailand

­­­Thailand

Infrastructure Procurement: Private participation in infrastructure investments has been primarily implemented using concession-based contracts. Thailand is continuously facing ‘logistics bottlenecks’, hence infrastructure investments remain insufficient.

PPP projects: Examples of high-profile PPP projects have included the construction of power plants, the BTS Sky Train, the Bangkok Underground Train, the Don Muang Tollway and various Express Ways. Potential PPP projects for the future include the high-speed rail link between Bangkok, Chiang Mai and NongKhai, connecting the capital to Lao PDR and China. Further investments are also planned in motorway expansion and improved road networks.

Overview of Public Interventions
Subsidies & Guarantees
Infrastructure Tax Incentives For certain activities, the Thailand Board of Investment provides tax incentives. Examples include:

• Exemption of import duties on machinery of up to eight years and deductions for raw research materials
• Corporate income tax exemption for three to eight years
• Reduction of corporate income tax for up to five years
• Double deduction on utility costs (transportation, electricity and water)
• Deduction for qualifying infrastructure costs

Contact:
555 Vibhavadi-Rangsit Rd.,
Chatuchak, Bangkok 10900, Thailand
T. (+66) 2553 8111
F. (+66) 2553 8222,
Email: head@boi.go.th
Website: http://www.boi.go.th
Guarantees covering Political Risks The Investment Promotion Act B.E. 2520 includes:
• Guarantee against nationalisation of promoted entities
• Guarantee of free currency transfer
• Permission for the employment of foreign skilled workers and experts to work in investment-promoted activities
Grants/Soft Loans
Viability Gap Funding (VGF) No VGF currently in place.
Other Public Support
Land Acquisition Support The land law prohibits land ownership of foreigners but other acts allow land ownership rights for foreign investors under specific conditions. See: the Land Law, Industrial Estate Authority of Thailand Act and Investment Promotion Act B.E. 2520.

The government supports the acquisition of land for PPP projects.
Project Development Fund (PDF) Thailand’s Ministry of Finance seeks to establish a PDF via a venture fund worth 2 billion Baht, which will provide seed money for investment projects. The Fund will finance private companies’ feasibility studies, whereby the money will only need to be repaid once the project is profitable.