NO

ASPECTS

DESCRIPTION

12.

Facilities Available to Facilitate Project Structuring and Transaction Advisory

- The PPP Master Plan will provide the national direction toward the private sector's investment in which the government is promoting in the next 5 years*.

- The Ministry of Finance has established the revolving PPP Fund to support/motivate the PPP projects. Project agency can borrow the money from the Fund to conduct the feasibility study and the project advisory. The Project agency is required to reimburse the money to the Fund through tender document sale fees, investment appraisal fees and investment contract signing fees after the contract has been signed.

(Info Graphic is attached herewith)

13.

Role of Local Government

- In case that PPP project is initiated by local government, the local government is treated as project agency under the Private Investment in the State Undertakings Act B.E. 2556 (2013). Besides that, some permits or licenses have to be granted by the local government.

14.

Risk Sharing Policies/Practices

- The risk will be allocated between public and private sectors, who is best to handle each risk of the project. The project agency has to determine such risk sharing when conduct a feasibility study.

15.

Financing Mix Options Allowed

There is no threshold for Debt to Equity ratio, however, selection committee can determine the threshold based on project requirement and private participant qualification.

16.

PPP Promotions/ Marketing Mechanisms

After the cabinet approves PPP Master Plan and Project pipelines, SEPO will publish them in the Royal Gazette.

17.

Monitoring and Evaluation

- Once the investment contracts has been signed, the responsible Ministry of the project shall appoint the Supervisory Committee, together with its powers

and duties which are:

- To monitor and supervise the project to ensure the operations are conducted in accordance with the investment contract;

- To consider proposing approaches to resolving problems arising from project implementation to the project agency;

- To require that project agency or private contractual party to give an explanation or submit relevant documents;

- To report operational results, problems and approaches to resolving problems to Responsible Minister for acknowledgment;

- To consider amendments to the investment contract.

18.

Dispute Resolution Mechanism

Due to the fact that disputes and conflicts in PPP projects are usually concerned with state power, e.g. those arisen from the PPP contracts in which state power is inherent, thus deemed administrative contract, they fall within the jurisdiction of the administrative court; therefore, generally, they are resolved at the court. (Note that the administrative court's case proceeding employs an inquisitorial system, as opposed to the adversarial system used in other civil courts) Opting for arbitration in PPP projects, practically, still requires streamlined enabling provisions despite attempts to pave way for the use of such mechanism.

However, the supervisory committee will be formed to monitor and supervise the project, according to the Private Investment in the State Undertakings Act B.E. 2556. The committee's authority also includes proposing approaches to resolving problems arising from project implementation to the host agency. The committee can be viewed as the regulatory body that can indirectly contribute to dispute resolution, thereby, in a way, serving as a preliminary effort to resolve the dispute before presenting it to the court.