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July 6, 2016

Thailand: New Procedural Rules for Selecting PPP Projects

Tilleke & Gibbins

The Policy Board, established under the Act Allowing Private Entities to Make Joint Investments in State Businesses, has issued a Notice setting out different procedural rules for the selection and implementation of public-private partnership (PPP) projects.

The Notice sets out two separate procedures, which apply depending on the estimated value of the project, as follows: 

  • Small projects. Projects valued at less than THB 1 billion are deemed as small projects, which undergo a streamlined approval procedure. If the relevant government agency responsible for a project has its own rules and regulations for project approval and implementation, those rules will apply. Once the project has been approved by the relevant agency, it will be submitted for public tender, unless there are grounds for exemption, as prescribed in the Notice. For example, if any delay in implementing a state project in need of immediate funding would cause damage to the public, the relevant agency may forgo the tender process.
  • Medium-sized projects. Projects valued at more than THB 1 billion but not exceeding THB 5 billion are considered medium-sized projects. In general, the selection procedure for these projects involves the following five stages: reviewing the project proposal, screening the project, implementing the project through public tender, supervising and monitoring, and amending the PPP contract, if necessary.

If you have any questions about public-private partnerships or the procedures in this Notice, please contact Tilleke & Gibbins at [email protected] or +66 2653 5555.

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