You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

December 30, 2014

New Law Puts Public-Private Partnerships on Solid Ground

Subscribe to Updates
Bangkok Post, Corporate Counsellor Column

There was much fanfare last year about the enactment of the Private Investment in State Undertaking Act of 2013. Many commentators forecasted an era of renewed vigor for public-private partnerships (PPPs) in Thailand.

In reality, the Act made only incremental changes relative to the older Public Participation in State Undertaking Act of 1992, at least in terms of approval procedures. However, it did set out a much stronger framework for comprehensive planning and quality of public-private ventures. This was evident in sections calling for a PPP Policy Committee, a PPP Fund, and a PPP Strategic Plan, as well as regulations on the use of experts and consultants.

The PPP Policy Committee in particular has broad authority, from preparing the PPP Strategic Plan for cabinet approval to approving projects, proposing measures to support PPPs, considering approval of no-bid selection processes, and issuing a variety of regulatory notifications.

The PPP Strategic Plan will be the main driver of PPP policy, identifying sectors appropriate for PPPs, setting priorities, identifying areas where investment is urgent, and setting targets and time frames. A new plan is to be produced every five years, with evaluations in the interim.

To ensure the plan reflects public needs, the PPP Policy Committee must hold hearings to obtain input from state agencies and members of the public. Prior to each hearing, the State Enterprise Policy Office (Sepo), as the secretariat, will prepare a framework setting out the draft strategic plan, goals, target audience, and other details for the approval of the committee. This will help it to produce an effective PPP Strategic Plan for submission to the cabinet.

The PPP Fund, meanwhile, is envisaged to be used for developing the strategic plan, hiring consultants, and helping state agencies to develop PPPs consistent with the plan. The money will come from state budget appropriations as well as fees charged to bidders. A PPP Fund Committee, separate from the policy panel, set out rules for the fund’s operation and expenditure earlier this year.

The new law also sets out clearer guidelines for the use of experts and consultants. By law, a state agency pursuing a PPP must appoint a selection committee to address tendering and a supervisory committee to handle oversight. Each is required to include some experts with knowledge, expertise, and experience that would be directly beneficial to consideration or oversight of a project. With the necessary regulations having been promulgated, Sepo has already begun compiling a list of approved experts.

As for consultants, the law envisages they will have various roles. At the very least, government agencies are required to hire consultants to produce reports about particular projects they wish to pursue. In addition, consultants can help to prepare tendering documents, analyze and propose solutions to manage risks, analyze and propose solutions to implementation problems, and/or advise on contract amendments.

Given the important role of consultants, the law requires the PPP Policy Committee to promulgate regulations on their qualifications. These regulations were promulgated early this year and address both individual consultants and firms. Among the requirements, a consultant must have at least three years’ experience and consulted on at least three projects, although these requirements can be reduced in the event of necessity with prescribed approvals.

Among the prohibited characteristics, the regulations exclude those who have specified conflicts of interest, abandoned work or been bankrupt, dismissed for malpractice, or sentenced to imprisonment, except for offenses committed through negligence or petty offenses.

A government agency pursuing a project must hire a consultant to prepare a project appraisal report, which must meet the requirements set out by the PPP Policy Committee. The regulations require the appraisal report to comprise a study and analysis addressing such matters as technical benefits, operating costs, estimated gains, a comparison of costs, and cost-effectiveness of different budget alternatives; alternative models for private sector investment; impacts of the project and means of mitigating negative impacts (environmental, national security, legal compliance, and others); results of the required hearings; identification of risks and their management; and the financial status and other relevant information on the agency pursuing the project.

Once the appraisal report is done, the government agency must submit it to the responsible minister for consideration and approval and then to Sepo, after which consideration will continue in accordance with the procedure specified in law.

With a solid legal foundation laid, the success of PPPs in Thailand will depend on both project champions within the government and private-sector operators that have the flexibility to meet the requirements of their public-sector counterparts. If both of these come together, PPPs can be an excellent solution for Thailand’s infrastructure needs.

Download Full Article
Related Professionals

Industries

Energy

Practices

Corporate/M&A

Location

RELATED INSIGHTS​ 

May 25, 2026
After several years of policy discussion and continued efforts led by the Ministry of Commerce (MOC) to relax the list of reserved businesses under the Foreign Business Act B.E. 2542 (1999) (FBA), the reform process has now reached a significant milestone. On May 12, 2026, the Thai cabinet approved in principle two draft subordinate legislative instruments aimed at delisting certain reserved business activities under the FBA and reducing licensing requirements for foreign business operators. These developments signal a renewed and concrete effort by the government to modernize Thailand’s business regulatory framework in order to attract foreign investment and boost Thailand’s competitiveness in the global market. Nine Businesses Set for FBA Delisting Below is a list of the nine businesses that are being targeted for delisting from the FBA’s restrictions. A draft ministerial regulation would delist the first eight reserved businesses, while a royal decree has been drafted to delist the ninth business: Telecommunications services (Type 1 license only, covering operators without their own telecommunications infrastructure), under the supervision of the Office of the National Broadcasting and Telecommunications Commission. Treasury center services subject to the Foreign Exchange Control Act B.E. 2485 and under the supervision of the Bank of Thailand. Securities-collateralized lending, pursuant to the laws governing securities and exchange and derivatives regulated by the Securities and Exchange Commission. Agency, dealer, advisory, or fund management services relating to derivatives where the underlying assets fall outside the scope of the Derivatives Act B.E. 2546 (2003) Intra-group shared services, including administrative, human resources, and IT functions Intra-group domestic debt guarantee services Leasing of partial space for installation of financial service machines and automatic vending machines for employee use Petroleum drilling services Trading of agricultural product derivatives through a futures exchange, with physical delivery or receipt of agricultural products at a futures exchange–designated
Read More
February 10, 2026
Data center and cloud investments are forming a major focus of private-sector investment in Thailand, with tech giants like Amazon, Google, Microsoft, and TikTok, as well as numerous telecom and data center companies, committing significant outlays to data center and cloud development. The country’s Board of Investment (BOI) approved projects worth THB 1.87 trillion in 2025, and THB 746 billion of this was from planned data center investments—by far the largest amount from any single industry. Thailand’s swift rise as a regional data center hub is fueled by surging demand for cloud, AI, and digital services, as well as large-scale investments from global tech firms. The country’s strategic location, competitive power costs, robust fiber infrastructure, expanding IT talent, and supportive government policies—including BOI incentives and streamlined approvals—have made it an attractive destination for scalable and sustainable digital infrastructure investments. The BOI’s proactive approach in updating promoted categories and providing both tax and non-tax incentives further ensures Thailand’s continued growth in this sector. 2025 BOI Changes for Data Centers In the middle of 2025, the BOI responded to the remarkable trend by updating investment‑promotion categories across various sectors (e.g., machinery and electrical equipment, public utilities, digital and innovative industries) to accommodate growing investment in data‑center projects. Before the change, which was detailed in a notification that has applied to investment promotion applications submitted from July 1, 2025, onward, data‑center projects under BOI promotion were granted a single A1 incentive (an eight‑year corporate income‑tax exemption) and subject to one uniform set of conditions. The July 2025 notification restructured promotion for data centers into two categories based on power‑usage efficiency: high‑efficiency data centers and other data centers. Under these rules, qualified high‑efficiency data centers are eligible for an eight‑year corporate income tax (CIT) exemption, while for other data centers this exemption is
Read More
November 21, 2025
On November 17, 2025, Thailand’s Ministry of Interior introduced significant regulatory changes to make rooftop solar adoption easier and more cost-effective for property owners. Ministerial Regulation No. 72 B.E. 2568 (2025), issued under the Building Control Act B.E. 2522 (1979), was published in the Government Gazette on November 19, 2025, with immediate effect. Background Under the Building Control Act (BCA), any alteration made to a building requires either notification of the relevant authority or application for a building alteration permit—unless the alteration falls under a separate list of exceptions specified in the ministerial regulations issued under the BCA. In 2015, installation of solar rooftops on any residential building under 160 square meters was added to this list of exceptions, subject to inspection and notification requirements. The newly enacted regulation now eliminates many of these requirements and introduces a broader and more permissive framework to promote solar adoption nationwide. Key Changes Specifically, the regulation introduces three major changes: Expanded exemption from the definition of “building alteration”: The installation of solar panels on any building roof—regardless of the type of building or the total area of the installation—is no longer considered a building alteration under the BCA, provided that the total weight of the installation does not exceed 20 kg/m2. Removal of structural integrity certification requirement: The new regulation eliminates the obligation to obtain a structural stability certificate from a licensed civil engineer. Removal of notification requirement: Property owners or possessors are no longer required to notify the local authority before installation of a solar rooftop. Impact This significant streamlining of requirements for solar rooftop installation is expected to accelerate the adoption of renewable energy in the country, particularly for residential and commercial properties—similar to the way Thailand’s December 2024 removal of licensing requirements for factory solar rooftop installations encouraged such
Read More
September 25, 2025
Tilleke & Gibbins’ labor and employment team in Hanoi and Ho Chi Minh City has contributed the Vietnam chapter to Labor and Employment Disputes 2026. Drawing on the expertise of three of the firm’s employment specialists, the chapter provides practical guidance for navigating employment disputes in Vietnam and covers: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The Vietnam chapter is available for download below. Tilleke & Gibbins also contributed the Cambodia and Thailand chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More