EEC: Consolidated Draft Notification on Private and Public-Private Investment
The Eastern Economic Corridor Office (EECO) has released for public hearing a comprehensive Draft Notification of the Eastern Economic Corridor Policy Committee titled “Criteria, Procedures and Conditions for Joint Investment with the Private Sector or for Allowing the Private Sector to be the Investor B.E. .…” (“Notification”).
Upon final promulgation, this single new Notification will repeal and replace all seven earlier versions issued between 2017 and 2020, thereby establishing a modern, unified and fully consolidated regulatory framework for every public-private partnership (PPP) and pure private-investment project in the Eastern Economic Corridor (EEC).
Current Challenges the Draft Seeks to Resolve:
The existing regime has suffered from:
- Regulatory fragmentation caused by seven separate notifications and amendments over eight years, creating legal uncertainty and compliance complexity.
- Excessive and unpredictable approval timelines due to overlapping reviews by multiple ministries and agencies.
- Inconsistent application of transparency rules, risk-allocation principles, and anti-corruption safeguards across projects.
- Ambiguous or outdated provisions on non-competitive selection, contract amendments, post-contract supervision and arrangements after concession expiry.
- Insufficient mandatory integration of private-sector consultation results and continuing public disclosure obligations.
How the New Draft Will Help:
The consolidated Notification introduces a clearer, faster, and more robust system:
1. One single rulebook aligned with the Public-Private Partnership Act B.E. 2562 (2019) and international best practice.
2. Strict timelines: 15 days for most completeness checks and agency comments; 30 days for Attorney-General review of contracts and amendments.
3. Mandatory independent committees appointed by the EEC Policy Committee:
- Selection Committee during procurement.
- Supervisory Committee throughout the operational phase.
4. Enhanced transparency and anti-corruption measures:
- Compulsory private-sector hearing before finalizing feasibility studies and tender documents.
- Publication of contract summaries and selection methodology within 30 days of signing.
- Six-monthly public progress reports.
- Automatic reporting to the National Anti-Corruption Commission (NACC) and State Audit Office.
5. Explicit value-for-money and risk-allocation requirements in every feasibility study.
6. Tiered contract-amendment procedure (minor → material → affecting Cabinet-approved principles) with corresponding approval levels.
7. Obligation, at least five years before expiry, to prepare and obtain approval for a post-concession strategy (re-tender, state takeover, or extension).
8. Competitive bidding as the unequivocal default; any non-bidding method requires detailed justification and prior Policy Committee approval.
Core Requirements and Procedural Stages:
1. Project Proposal and Approval
- Preliminary outline submitted to the EEC Policy Committee.
- Full feasibility study (technical, financial, economic, legal, environmental, and risk analysis) prepared by qualified Thai/international consultants.
- Circulation for 15-day comments from relevant ministries and agencies.
- Final “Project Principles” submitted for Policy Committee approval (and Cabinet where budget or borrowing is required).
2. Private Investor Selection
- Invitation-to-tender documents, TOR, and draft contract prepared and approved by the Selection Committee.
- Competitive bidding mandatory unless exceptional non-bidding approval is granted.
- Winning investor must incorporate a new Thai-registered project company as the contracting entity.
3. Supervision and Monitoring
- Supervisory Committee appointed upon contract signature; meets quarterly and reports to EECO every three months with full information-request powers.
4. Transparency, Consultation and Reporting
- Mandatory private-sector hearing and incorporation of results into studies and tender documents.
- Ongoing public disclosure throughout the project lifecycle.
Who Will Benefit:
- Private investors and financial institutions: greater legal certainty, shorter and more predictable timelines, clearer amendment rules.
- Sponsoring government agencies: single consolidated procedure, reduced duplication, stronger governance tools.
- The general public and civil society: systematic consultation rights and continuous access to project information.
- The EEC region overall: accelerated delivery of high-quality infrastructure and industrial projects with lower execution and reputational risk.
Preparations Required:
Government agencies planning EEC projects should now:
- Reformat existing project pipelines to the new documentation standards and timelines.
- Allocate budget for qualified Thai and international consultants (feasibility, financial modelling, tender documentation).
- Build internal capacity for mandatory private-sector hearings and ongoing disclosure obligations.
- Train staff on Selection Committee and Supervisory Committee procedures.
Private investors and consortiums should:
- Monitor the final text after the public hearing process.
- Prepare bidding and financing structures for the mandatory new Thai project-company requirement.
- Strengthen compliance systems for integrity pacts and enhanced beneficial-ownership disclosure.
The draft is currently open for public hearing. Following the incorporation of stakeholder comments and publication in the Government Gazette, it will become the exclusive governing regulation for all future EEC investment projects, delivering a markedly more transparent, efficient, and investor-friendly environment for Thailand’s flagship economic corridor.
Author: Panisa Suwanmatajarn, Managing Partner.
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