Seven government projects in the Eastern Economic Corridor 2018
The legislation for the Eastern Economic Corridor (EEC Act) is delayed. However, seven governmental projects of EEC phase 1 are already green-lighted and ready for investments.
The total EEC infrastructure investment consists of
- 30% government spending
- 59% public-private partnerships
- 10% state-owned enterprises, and
- 1% RTA Royal Thai Army.
These investments are scheduled in three phases, which are
- urgent phase 2018/2019: 99 projects
- intermediate phase (2019-2021): 62 projects
- long-term phase (2022 ff.): 7 projects
The Policy Committee on the Eastern Economic Corridor project has approved the development of major infrastructure projects for 2018:
1. High-speed rail: The high-speed rail project to link three airports. The private sector will be encouraged to co-invest in the project. The private firms to implement the project will be selected in February 2018, signing is scheduled for September 2018, and the service will be operational from 2023. An investment of THB 210 billion.
2. Eastern Aviation City project: The private sector will be encouraged to co-invest in May 2018 and the firms to implement the project will be selected and negotiations will be held in October 2018 and the service will be operational from 2023. U-tapao Airport Development project to be implemented in line with the Eastern Aviation City project. An investment of THB 160 billion.
3. The Aircraft Repair and Maintenance Center: The facilities at U-tapao to be jointly implemented by the Navy, the Thai Airways International and AirBus Co. Details of the planned joint venture will be compiled in March 2018 and an initial operation will commence in 2021.
4. Three port dual-track rail project: A feasibility study on the project will be finished in 2019 whereas the firms to implement it will be selected in 2020 and an initial operation will begin in 2023.
6. Mab Taput Industrial Port: An approval on environmental aspects is currently underway. The private sector will be encouraged to co-invest in the project in June 2018 whereas the firms chosen to implement it will be selected and negotiations will be held in September 2018 and the service will be operational from 2024.
7. Sattahip Commercial Port: The construction of a ferry-boat passenger terminal is underway. The service is expected to be operational in February 2019.
At least five of these seven projects will use the new PPP EEC TRACK, which is the fast track for public-private partnership models with a scheduled duration of ten months.
Professional services for investments and business activities in the Eastern Economic Corridor
Doing business in the EEC is one of the law firm’s areas of competence, long-standing experience, and unique market reputation. The scope of professional services and the terms for assigning PUGNATORIUS Ltd. are described at “Legal advice, tax structuring, transaction support services and business matchmaking on Thailand’s Eastern Economic Corridor.”