Public-Private Partnership Act B.E. 2562 (2019): Proposed Amendments

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Public-Private Partnership Act B.E. 2562 (2019): Proposed Amendments

The State Enterprise Policy Office (SEPO), responsible for evaluating the Public-Private Partnership Act, B.E. 2562 (2019), is conducting a public hearing to assess its effectiveness and gather stakeholder feedback for proposed amendments. This aligns with the Law Drafting and Evaluation Act B.E. 2562 (2019), and guidelines set by the Law Development Committee, endorsed by the Cabinet. The goal is to ensure the Act meets its objectives, aligns with international standards, reduces regulatory overlaps, promotes fairness, and boosts Thailand’s competitiveness.

Purpose of the Act:

The Act establishes a clear state policy for infrastructure and public service development through public-private partnerships (PPPs), aiming to:

  • Foster transparent, accountable partnerships.
  • Address delays and obstacles in PPP projects.
  • Leverage private sector expertise and innovation while transferring knowledge to the public sector.
  • Ensure fiscal discipline with streamlined, verifiable processes.

Key Measures of the Act:

The Act outlines measures to achieve its goals:

General Provisions

  • Projects align with national PPP plans, promote fiscal discipline, and prioritize public benefits (Section 6).
  • Covers state investments in infrastructure/services with private participation via concessions or permits (Sections 4, 7).
  • Projects under 5 billion baht follow simplified procedures (Section 9).
  • Mechanisms resolve delays or regulatory issues (Section 11).

PPP Plan Development

  • A national PPP plan aligns with infrastructure and social development master plans (Section 12).

PPP Policy Committee

  • Oversees policy, approves plans, and resolves issues (Section 20).
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Project Implementation

  • Proposals: Agencies submit detailed feasibility studies (Section 22).
  • Incentives: Include investment benefits and land leases up to 50 years (Section 23).
  • Private Sector Selection: Involves bidding, contract drafting, and Cabinet approval (Sections 36, 38, 41, 42).
  • Oversight: A supervisory committee monitors progress (Sections 43, 44).
  • Contract Amendments: Require justification and approvals (Sections 46–48).
  • Post-Contract: Agencies plan continuity five years before contract expiry (Section 49).

Public Interest Measures

  • Agencies may intervene in projects for public safety or national security, with compensation if private partners are not at fault (Section 50).

PPP Promotion Fund

  • Supports consultancy, training, and administration (Sections 51–59).

Miscellaneous

  • Contracts are submitted to ministries and SEPO, with project data publicly accessible online (Section 60).

Public Benefits:

The Act drives efficient infrastructure and public service development, enhancing quality of life, and national competitiveness, and leveraging private expertise under transparent partnerships.

Proposed Amendments

The amendments aim to significantly enhance the Act’s effectiveness by:

Promoting Innovation: Supporting new partnership models to incorporate advanced technologies and business approaches, fostering adaptability to future needs.

Streamlining Processes: Simplifying procedures to boost efficiency and flexibility, reducing bureaucratic delays.

Prioritizing Strategic Projects: Aligning PPPs with national development goals to maximize public impact.

Optimizing Risk Management: Establishing fairer risk-sharing frameworks between public and private sectors.

Enhancing Transparency: Introducing stricter guidelines for project approval, contract management, and performance monitoring to ensure accountability.

Author: Panisa Suwanmatajarn, Managing Partner.

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