thailand infrastructure news€¦ · robotics for industry; logistics and aviation; biofuels and...

Thailand Infrastructure News

Issue 415 November 2018

www.pwc.com/th

Disclaimer

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

© 2018 PricewaterhouseCoopers FAS Ltd. All rights reserved. PwC refers to the Thailand member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

PwC Thailand l November 2018 2

http://www.pwc.com/structure

Headlines

EEC Office assigned B100bn yearly target

EEC vision taking shape land use draft

EEC Office ordered to study province expansion

State enterprises invest heavily in infrastructure

Sepo raises disbursement 45% on infrastructure

3PwC Thailand l November 2018

Headlines

State to lead way with Bt30 bn investments in EECi

Terminal 2 at U-Tapao airport to be fully opened in February

Japan's FDI lead tenuous as EEC targets other nations

Thai-China trade pact signedUS$140bn in bilateral trade targeted by 2021

EEC roadshows for China, Japan, Europe backed today


Headlines (cont’d)

Transport links 'would buoy Asean to new high'

Education joins list of targeted industries

CP, BTS groups set to bid for airport link high-speed railway

BTS, CP consortia enter bid for airport train project

Commerce officials promoting Chinese investment in Asean


Headlines (cont’d)

PM to prioritise Asean connectivity

EGCO pushes on with Korea investment deal


The Eastern Economic Corridor (EEC) Office has been told that its key performance indicator (KPI) is to attract 100 billion baht in investment applications per year for S-curve

industries, says Industry Minister Uttama Savanayana. Mr Uttama yesterday visited the EEC Office and assigned the agency to deliver this KPI each year. The S-curve industries

consist of 11 targeted sectors in advanced technological development: cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food;

robotics for industry; logistics and aviation; biofuels and biochemicals; digital; medical services; and defence. Mr Uttama said the EEC Office has to increase efficiency and

become the leading state agency to attract local and foreign investors to the flagship EEC scheme. The corridor was initiated in mid-2016, after which the EEC Office was

founded. The EEC Act of 2018 was implemented in mid-May. Mr Uttama said the government has set an ambitious target for the EEC of 300 billion baht in investment

applications annually. Of the target, 200 billion baht was assigned to the Board of Investment (BoI) and the remaining applications are the EEC Office's duty. The BoI's

investment applications this year will reach 720 billion baht, surpassing 600 billion in 2017. The BoI reported that investment applications for 754 projects were approved in the

first six months of 2018, up 22% year-on-year, with investment of 284.6 billion baht, equal to last year. Of the total applications, 316 projects were in the 11 targeted industries,

accounting for 46% of total applications worth 224.15 billion baht, or 82% of total investment. This year's EEC applications for the period covered 142 projects worth 183.23

billion baht, up 122% from the same period last year. Mr Uttama said the government will run new roadshows in Japan, China, Hong Kong, South Korea and Europe. The

roadshow will go to Shanghai next week to meet Alibaba Group and proceed with cooperative projects.

Source: Bangkok Post

https://www.bangkokpost.com/business/news/1568110/eec-office-assigned-b100bn-yearly-target

EEC Office assigned B100bn yearly target01 November 2018


https://www.bangkokpost.com/business/news/1568110/eec-office-assigned-b100bn-yearly-target

EEC vision taking shape land use draft02 November 2018

8

THE first draft statement for the layout of land use in the Eastern Economic Corridor (EEC) will be released next month on expectations that the proposals will come into force within six months,paving the way for investment inflows of as much as Bt500 billion in the flagship economic zone over five years. Industry Minister Uttama Savanayana said after a meeting of the special committee forEEC development yesterday that the EEC Policy Committee next year will focus on persuading local and foreign investors to invest in the EEC as well as in areas outside it. It would do so by workingclosely with the Board of Investment (BOI) and coordinating its efforts with the Ministry of Foreign Affairs and the Industrial Estate Authority of Thailand. “Today, other countries have acknowledgedthe EEC. After this, we will persuade investors in specific industries," he said. The layout of the land usage - which will extend from utilities, infrastructure and healthcare to tap water and electricity –will seek to maximise the benefits for all kinds activities and the EEC panel would also work closely with the Department of Public Works and Town and Country Planning, he said. With the first drafton land use to come out early in December, a public hearing will be held on expectations that it will take effect in six months, he said. A plan for expanding the EEC to incorporate other provinces willbe forwarded to the EEC Policy Committee on November 9. Kanit Sangsubhan, secretary-general of the EEC Policy Committee, said that this meeting would focus on ways of attracting investment inthe 10 industries that have been targeted for the EEC. Kanit expressed confidence in the forecast of the EEC drawing at least Bt500 billion in the first five years of the zone’s operation. About 50 percent this targeted investment is expected to go into the so-called New S-Curve industries, with the rest in First S-Curve activities. Among the New S-Curve industries, about 20 per cent of the targetedinvestment is expected to go into robotics, 20 per cent for aviation and logistics, 25 per cent for biofuels and biochemicals, 25 per cent for digital and 10 per cent for a medical hub. Investments in theEEC will play a major role in boosting Thailand's gross domestic product (GDP) by 2 per cent (1 per cent each from infrastructure investment and manufacturing investment). Ultimately, about Bt300billion is expected to be invested annually in the EEC. Some Bt200 billion of this is expected to come with promotional privileges from the Board of Investment and about Bt100 billion from the EECOffice. Combined with economic growth of about 3 per cent a year, the contribution from the EEC is expected help gross domestic product rise by 5 per cent per year on average from 2019 to 2023. “Italso depends on the global economic situation. If the global economy is not good, it (GDP growth) may not reach 5 per cent," Kanit said. The meeting yesterday also discussed the establishment of anEEC development fund with initial funding of Bt100 million granted by the government. The fund is targeted to have no less than Bt1 billion, which will be collected mainly from private enterprisesinvesting in the EEC. The fund will be used to develop communities and help people affected by the EEC development and promote education in the zone and nearby areas. To back the government’sambitions, an EEC roadshow will be held. For Europe, it will focus on startups and digital technology; for Japan, on robotics, aviation, digital and smart cities; and for China, the 10 targeted industries.Narit Therdsteerasukdi, deputy secretary-general of the BOI, said that since the start of the EEC in 2016, applications worth Bt720 billion have been made for promotional investment privileges in theEEC. For the year so far, applications worth about Bt230 billion have been made for such privileges and about 80 per cent of them relate to the New S-Curve industries. The BOI will help encourageinvestment by company, focusing on New S-Curve industries and smart cities and the promotional investment package for smart cities will be proposed to the BOI board meeting on November 19,Narit said.

Source: THE NATION

http://www.nationmultimedia.com/detail/Economy/30357690

PwC Thailand l November 2018


The Industry Ministry has ordered the Eastern Economic Corridor (EEC) Office to conduct a feasibility study for expanding the EEC into new provinces to further drive investmentdemand in the industrial sector. The plan is to expand into surrounding provinces. The corridor spans 110,168 rai and covers 30 existing and new industrial zones in Chachoengsao,Chon Buri and Rayong. Industry Minister Uttama Savanayana said both local and foreign investors are very interested in the EEC's S-curve policy. This policy consists of 11 targetedindustries in advanced technological development. The existing industries are cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; andfood. The new S-curve sectors are robotics for industry; logistics and aviation; biofuels and biochemicals; digital; medical services; and defence. "The expansion of industrial zonesoutside the three provinces can serve more investment flows entering this corridor in the near future," Mr Uttama said after he chaired the administration committee fordevelopment of the EEC yesterday. Kanit Sangsubhan, the EEC Office's secretary-general, said all 11 targeted industries will beef up the country's GDP, with the government aimingto attract investment value of 500 billion baht by 2023. "The government expects both existing and new S-curve industries to represent half of the total value by 2023," said Mr Kanit."The global trend is moving to the S-curve industries and Thailand must move with the trend as well." The EEC Office has been ordered to cement 100 billion baht in investmentapplications per year for the S-curve industries. Mr Kanit added the government expects the flagship EEC will increase the country's GDP by another 2% from the fundamental GDPat 3% per year. GDP will have the 5% growth annually once the EEC is fully implemented. "The five megaprojects and the S-curve industries are set to drive the economy," said MrKanit. The meeting's conclusion yesterday will be propose to the EEC Board, chaired by Prime Minister Prayut Chan-o-cha on Nov 9. Narit Therdsteerasukdi, deputy secretary-general of the Board of Investment (BoI), said investment applications this year will reach 720 billion baht, surpassing 600 billion in 2017. Of the total applications, 300 billion bahtis targeted from the EEC this year. The BoI reported the investment applications for the corridor stood at 230 billion baht from January to September. "The 11 targeted industriesmade up 80% of applications," Mr Narit said. The BoI will have a board meeting, chaired by Gen Prayut on Nov 19 and the promotional incentives of Smart City project will beproposed to this meeting.


https://www.bangkokpost.com/business/news/1568850/eec-office-ordered-to-study-province-expansion

EEC Office ordered to study province expansion2 November 2018


https://www.bangkokpost.com/business/news/1568850/eec-office-ordered-to-study-province-expansion

State enterprises invest heavily in infrastructure5 November 2018

10

Forty-five state enterprises have invested a total of Bt310.92 billion in the first nine months of this year, up 45 per cent from the same period last year, State Enterprise Policy Office (SEPO) director-general Prapas Kong-led said on Monday. He added that most of the investment was earmarked for developing the country's infrastructure in projects being implemented by the Electricity GeneratingAuthority of Thailand, Mass Rapid Transit Authority of Thailand, the Provincial Electricity Authority and the Metropolitan Electricity Authority, SEPO will continue to push all state enterprises toexpand their investment to boost economic growth, he added.

Source: THE NATION




State enterprises managed to dole out 310 billion baht worth of investment budget for the nine months through September, up 45% from a year earlier, says the chief of the StateEnterprise Policy Office (Sepo). The sharp increase in investment budget disbursement could be attributed to accelerating investment in big-ticket infrastructure projects, includingthe Electricity Generating Authority of Thailand's South Bangkok Power Plant Replacement phase 1, Transmission System Expansion Project No.12, the Orange Line electric trainlinking Thailand Cultural Centre to Min Buri and the Green Line electric train connecting Mor Chit-Saphan Mai to Khu Khot. The Provincial Electricity Authority's transmissionsystem development phase 1 and transmission system and substation development phase 9 also played a role, said Prapas Kong-Ied, director-general of Sepo. State enterprises whoseaccounting period is based on the calendar year are estimated to see their disbursement rate reach 90% of their annual budget by next month, he said. "These investments will helpboost the country's economic growth this year," said Mr Prapas. Given that state enterprise investment is an important tool for the government in driving the country's economicgrowth, disbursing the budget is the Sepo's priority in the final quarter of this year, he said. The Sepo urged a committee governing state enterprise investment budget disbursementas well as state enterprises, particularly those with large investment projects, to expedite their disbursement for the rest of this year to achieve the government's target of 95%disbursement, said Mr Prapas. On a fiscal-year basis, 45 state enterprises drew down 329 billion baht in investment budget from October to September, some 87% of thedisbursement plan, said Chanvit Nakburee, deputy director of the Fiscal Policy Office. Some 34 state enterprises whose accounting period is based on the fiscal year doled out 102billion baht from October 2017 to September 2018, accounting for 70% of the target, while 11 using the financial year disbursed 227 billion baht for the nine months, or 98% of thetarget.


https://www.bangkokpost.com/business/news/1570682/sepo-raises-disbursement-45-on-infrastructure

Sepo raises disbursement 45% on infrastructure6 November 2018


https://www.bangkokpost.com/business/news/1570682/sepo-raises-disbursement-45-on-infrastructure

State to lead way with Bt30 bn investments in EECi8 November 2018

12

THE government will invest Bt30 billion in the Eastern Economic Corridor of Innovation (EECi) zone and expects the private sector will follow its lead with around Bt100 billion in investments in thezone under the 20 year-project. Narong Sirilertworakul, president of the National Science and Technology Development Agency (NSTDA), said that agency will construct the first phrase of the EECi bythe end of this year with investment of Bt1.1 billion to develop buildings and infrastructure. The first phrase will be completed in 2020 and will officially be launched in 2021. “The EECi is a completeecosystem for innovation and a new economic estate specialising in research, innovation and related testing and evaluation, which will boost the country’s competitiveness in the world market. TheEECi runs through Rayong and Chon Buri provinces," said Narong. EECi campuses will house government-funded and private research laboratories, field test centres, and pilot and demonstrationplants. The two campuses are the Wang Chan Valley Campus located on 485 hectares in Rayong and the Space Krenovation Park, on a 19-hectare site in Chon Buri’s Sri Racha district. The Wang ChanValley Campus will combine an “Aripolis” for automation, robotics and intelligent systems, and a “Biopolis” for life science and biotechnology, while the second campus will specialises in theaeronautics and aerospace industry. Narong said that to drive innovation and technology in the EECi and throughout the country, the agency has signed memorandums of understanding (MoU) withits partners for research and development in the areas of unmanned aerial vehicles (UAV), technology and knowledge transfer and innovation in order to create networks and ecosystems of newtechnology, deep technology, bio-refinery and other forms of innovation as well as develop a pilot plant in EECi. The partners include the Civil Aviation Authority of Thailand (CAAT), the Geo-Informatics and Space Technology Development Agency (GISTDA) and CMKL University. The agency also has Northern Science Park, Northeastern Science Park and Southern Science Park to developas hubs in order to create a network of the science parks. This will encourage the private sector, both domestically and internationally, to invest in the EECi as well as in universities at home and abroadto enable the transfer of technology and research development under collaborative efforts. He said that within the next five years, the government expects to inject around Bt5 billion, jumping to Bt30billion, under the 20-year project, which started this year. The agency also expects the private sector’s expected investments of around Bt100 billion in the EECi over the 20 years will enhance thecountry’s competitiveness.

Source: THE NATION




Terminal 2 at U-Tapao airport to be fully opened in February8 November 2018

13

The second passenger terminal building at U-Tapao International Airport will be fully opened in February, the airport's director said. Rear Adm Luachai Sri-iamkul, the director of the airport, said thenew terminal has been partially opened for domestic flight passengers and for inbound international flight passengers. He said the airport would have to build more toilets to cope with the highnumber of passengers and to open bidding for the commercial management of the building so that there would be shops and restaurants for passengers. The director said the outbound immigrationpolice booths and work on some shops has yet to be completed. Luachai said all the facilities should be ready by February next year. He said the second terminal building, which is about 80 per centcomplete, covers 22,000 square metres and can accommodate 3 million passengers a year but with effective management, the building could accommodate up to 5 million passengers a year. Luachaisaid 2 million passengers used the airport last year and this year the number could rise to 2.5 million.

Source: THE NATION

http://www.nationmultimedia.com/detail/Tourism/30358145


http://www.nationmultimedia.com/detail/Tourism/30358145

GUANGZHOU: With years of Japan controlling a huge chunk of foreign direct investment in Thailand, Kobsak Pootrakool, the PM's Office Minister, says Chinese investment isapproaching, fast and furious, and is expected to topple Japan for the lead in 10 years. Speaking at a seminar in Guangzhou titled "Driving Transformation through Thailand 4.0 andEEC" organised on Wednesday by the Board of Investment (BoI), in which 600 Chinese companies participated, Mr Kobsak said the government sees potential in Chinese investors'rapid developments in high technology. He cited the Bank of Thailand, noting that Chinese investment in Thailand dramatically increased to US$8.19 billion (268 billion baht) in2017 compared with just $70 million in 2008. Mr Kobsak urged Chinese investors to plough more funds into Thailand, pointing out that the government's Thailand 4.0 policy withBoI privileges for many industries is in their favour, especially the 11 targeted industries, which encompass areas China excels in, such as artificial intelligence, digital, smartautomobiles and robots, bio-economy and infrastructure. "Chinese investors can use Thailand as a production base and re-export to Asean, as Cambodia, Laos, Myanmar andVietnam have high economic growth of 5-8.5% this year," he said. Mr Kobsak said the Thai and Chinese governments have pledged to deepen trade and investment cooperation,building connectivity between the EEC and the Guangdong-Hong Kong-Macao Greater Bay Area, known as the GBA, as well as other regional economic cooperations to enhanceinvestment. The GBA is the Chinese government's scheme to link nine cities in the coastal province of Guangdong -- Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan,Huizhou, Jiangmen and Zhaoqing -- with Hong Kong and Macao to establish a new business hub. Mr Kobsak told Chinese investors the EEC will become a significant location forfuture investment, especially in high technology under which the Eastern Economic Corridor of Digital, one of the flagship developments under the EEC scheme, will be establishedon one square kilometre as home to smart industries. The government has also implemented policies to support 200,000 small and medium-sized enterprises to upgrade theirtechnology and use robotics. Duangjai Asawachintachit, the BoI's secretary-general, said the board expects four giant companies from Guangdong province with sales revenue of 10-50 billion baht a year, whose executives met Mr Kobsak on Wednesday, to invest in Thailand. They are Hebei Lizhong Non-ferrous Metal Group, Xiamen Golden Egret Special AlloyCo (GESAC), Hamaton Automotive Technology Co and Guangdong JOFO Enterprises. The BoI reported that China's investment amounted to 515 projects worth 236.76 billion bahtduring 2008-17. In 2017, Chinese applications to the BoI were for 87 projects worth 27.51 billion baht, representing 9.7% of total foreign investment. In the first nine months thisyear, China's investment applications rose 60% from the same period last year to 85 projects, with an investment value of 22 billion baht, up 100% from 11 billion baht in the sameperiod last year. Lin Ji, the deputy secretary-general of Guangdong province, said investors in Guangdong have shown high interest in the EEC. He said Guangdong province'sinvestment in Thailand amounted to $570 million in the first nine months of this year, mainly in high technology and agriculture-related projects.


https://www.bangkokpost.com/business/news/1572022/japans-fdi-lead-tenuous-as-eec-targets-other-nations

Japan's FDI lead tenuous as EEC targets other nations8 November 2018


https://www.bangkokpost.com/business/news/1572022/japans-fdi-lead-tenuous-as-eec-targets-other-nations

Beijing: Thailand is moving ahead with plans to upgrade economic cooperation with China, agreeing Wednesday to the comprehensive framework on enhancing trade and economicpartnership between the two nations and aiming to double bilateral trade to US$140 billion (4.59 trillion baht) by 2021. According to Commerce Minister Sontirat Sontijirawong, thecomprehensive cooperation will cover seven key areas: trade, investment, science/technology, digital, tourism, finance and regional economic cooperation. On trade, the twocountries have agreed to double two-way trade to $140 billion by 2021 from $73.67 billion in 2017; support Thai entrepreneurs' participation in the China International Import Expoevery year; promote cooperation on farm products; and hold meetings of the joint committee and joint working panels on a regular basis. On the investment front, the frameworkcalls for the two parties to promote investment in targeted industries such as next-generation cars; smart electronics; robotics; affluent, medical and wellness tourism; agriculture andbiotechnology; future food; and logistics and aviation.

Japan's FDI lead tenuous: China likely top investor in 10 years On science, technology and innovation, the two parties vowed to reinforce the cooperation through human resourcecultivation, technology transfer, use of Thailand's Food Innopolis as an R&D venue, participation in China's space programme and science park development. On digital, thecooperation will focus on cybersecurity, e-commerce, 5G technology, investment in digital parks in Thailand and the upgrade of connectivity in digital infrastructure, both throughsubmarine and fibre-optic cable. On finance, Thailand and China agreed to promote the use of baht and yuan in bilateral transactions for trade and investment and promote fintech.On tourism, the two parties pledged to promote quality tourism, tourist safety and tourism-related industries such as film shoots, ferry services and hot springs development.On theregional cooperation framework, Thailand and China agreed to encourage the private sector to make the best use of the free-trade agreement between Asean and China, buildingconnectivity with the Pan-Pearl River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, the Mekong-Lancang Cooperation, the Greater Mekong Subregion and theAyeyawady-Chao Phraya Mekong Economic Cooperation Strategy."China is the world's largest trade partner and one of the top 10 foreign investors in Thailand," Mr Sontirat said."With at least 1.4 billion people and strong economic growth, China is undeniably one of the world's economic giants, playing a vital part in driving not only Asia, but the globaleconomy."For the first nine months of the year, two-way trade between Thailand and China topped $45.71 billion, up 11.6% from the same period last year.Key exports from Thailandincluded rubber and rubber products, plastic pellets, computers and parts, and chemicals, while major imports from China were electric machines and parts, machinery and parts,home electric appliances, chemicals, and automobiles and parts.


https://www.bangkokpost.com/business/news/1572030/thai-china-trade-pact-signed

Thai-China trade pact signedUS$140bn in bilateral trade targeted by 20218 November 2018


https://www.bangkokpost.com/business/news/1572030/thai-china-trade-pact-signed

Guangzhou: The Eastern Economic Corridor (EEC) Committee is scheduled to approve plans for international roadshows today to attract foreign investment in the government'sflagship project. Kanit Sangsubhan, secretary-general of the EEC Office, said the roadshows will be held in China, Japan and Europe. "The EEC wants to promote investment afterthe main infrastructure projects were approved and the terms of reference issued," he said. "The office has already established a special team to attract investors, with representativesfrom the private sector." Mr Kanit said the EEC Office is directly responsible for promoting investment in the EEC, as the agency aims to attract investors to the advanced industries(S-curve) promoted by the government. He said the international roadshows will be instrumental in drawing 100 billion baht worth of investment applications a year. The EEC Officehas been ordered by the government to attract 100 billion baht in investment applications annually for S-curve industries. The S-curve industries consist of 11 targeted sectors inadvanced technological development: cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics andaviation; biofuels and biochemicals; digital; medical services; and defence. The corridor was initiated in mid-2016, after which the EEC Office was founded. The EEC Act of 2018 wasimplemented in mid-May. The government has set an ambitious target for the EEC of 300 billion baht in investment applications annually. Of the target, 200 billion baht wasassigned to the Board of Investment (BoI) and the remaining applications are the EEC Office's duty. The BoI's investment applications this year are expected to reach 720 billionbaht, surpassing the 600-billion-baht level of 2017. The BoI reported that investment applications for 754 projects were approved in the first six months this year, up 22% year-on-year, for a total investment value of 284.6 billion baht, equal to last year. Of the total applications, 316 projects were in the 11 targeted industries, accounting for 46% of totalapplications worth 224.15 billion baht, or 82% of total investment. This year's EEC applications for the period covered 142 projects worth 183.23 billion baht, up 122% from the sameperiod last year. Mr Kanit said the committee is also scheduled to acknowledge the progress of infrastructure development projects within the EEC. At least three groups havesubmitted their proposal to bid for the high-speed railway linking Don Mueang, Suvarnabhumi and U-tapao airports. The terms of reference for U-tapao's aviation city are expectedto be announced next week.


https://www.bangkokpost.com/business/news/1572730/eec-roadshows-for-china-japan-europe-backed-today

EEC roadshows for China, Japan, Europe backed today9 November 2018


https://www.bangkokpost.com/business/news/1572730/eec-roadshows-for-china-japan-europe-backed-today

Prime Minister Prayut Chan-o-cha has urged Asean members to foster greater transport connectivity both within and outside the bloc to boost trade, tourism and investment. Thepremier was speaking Thursday at the opening ceremony of the 24th Asean Transport Ministers Meeting and Associated Dialogue Partner Meetings in Bangkok. He is due to attendthe 33rd Asean summit in Singapore from next Tuesday to Thursday. Gen Prayut said he was glad more members of the bloc are pursuing projects geared toward greater prosperity,and diversified development in the region including air, land and marine transport. Efforts to make transportation more convenient will play a key role in driving trade andinvestment, he said. "Transport cooperation and connectivity between Asean members is the key to uniting the region, driving economic growth and dynamically enhancingcompetitiveness,”Gen Prayut said. Such cooperation would also facilitate equal access to counties in Asia, he said. “Asean should be in a hurry to create this seamless connectivitywithin and outside the region," said Gen Prayut, adding the move would be beneficial to transfers of raw materials, products and labour. Asean must consolidate its efforts to becomea single aviation market and ensure the security of regional airspace, he said. A master plan for air traffic management must be followed up on in the interests of safety and inter-connectivity, he added. The bloc should also work together to build more roads and rail lines. This would make travel easier within and across national borders and facilitate freightshipments and the movement of trade and services in the region, the premier said. Coordinated efforts should also be made to ensure road networks are safe and serve as channels foraccess to all areas in the bloc, Gen Prayut said. Asean must gear itself toward becoming a single marine transport market so members can work together to ensure the safety of seatransport and jointly take part in search and rescue missions in the event of air and marine disasters, he said. The region should also pay attention to effective logistics systems andmulti-modal transport to facilitate shipments of people and goods. Greater collaboration would also ease hurdles on freight shipments and the movement of people across borders, henoted. Finding ways to develop more sustainable transport should be another focus of Asean, he said. By promoting energy-saving and environmentally-friendly means of transport,the region would ease its supersized emissions of greenhouse gases. "If Asean members work together to optimise the effective use of energy and reduce greenhouse gases it wouldlead to a reduction of air pollution on our roads," he said. "This would also lead to people's improved health." The bloc's negotiating partners -- Japan, China, Korea and the EU --have all been working to develop transport projects which suggests Asean has caught the interest of outsiders, Gen Prayut said. As Thailand is set to assume the chairmanship ofAsean next year, more efforts will be made to seek cooperation and strengthen the region, he noted. Meanwhile, the overall security situation and atmosphere of economiccooperation in the region has improved greatly in the past six months, and Asean leaders must seize this opportunity in Singapore next week and take a leading role to engagecountries, especially those in East Asia, to lock in a more predictable and stable future, pundits say.


https://www.bangkokpost.com/news/general/1572494/transport-links-would-buoy-asean-to-new-high

Transport links 'would buoy Asean to new high'9 November 2018


https://www.bangkokpost.com/news/general/1572494/transport-links-would-buoy-asean-to-new-high

The Eastern Economic Corridor (EEC) Committee yesterday approved adding education to the targeted industries, raising the number of promoted sectors to 12 for the government'sflagship initiative. The existing industries are new-generation automobiles; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; roboticsfor industry; logistics and aviation; biofuels and biochemicals; digital; medical services; and defence. New investment in the 12 targeted industries is expected to top 500 billion bahtduring 2018-22. Deputy Prime Minister Somkid Jatusripitak told the EEC Committee meeting chaired by Prime Minister Prayut Chan-o-cha that education is vital and acomplement to the government's Thailand 4.0 initiative. Kanit Sangsubhan, secretary-general of the EEC Office, said the meeting assigned related defence and education agencies tomap out the details of development, while instructing the Board of Investment to design appropriate promotional privileges to stimulate investment. Details are required to besubmitted at the next meeting of the EEC Committee. Mr Kanit said the panel also approved guidelines and international roadshows to persuade investors to invest in the EEC. TheEEC Office was assigned to conduct a proactive plan to attract anchor investors in each targeted industry through cooperation with the BoI, Foreign Ministry, Industry Ministry andIndustrial Estate Authority of Thailand. The first roadshow will take place in Germany later this year, with a focus on electric cars and other high-tech industries. Mr Kanit said thecommittee told the EEC Office and related agencies to accelerate land utilisation and town planning for the EEC. The plan should be complete within a year, as required by the EECAct. The office was also instructed to develop one-stop services in the EEC to help investors; speed up establishing a fund to ease the impact on residents in EEC areas; and rev upsmart city and tourism development. Furthermore, the committee ordered the EEC Office to study the feasibility of expanding the corridor into additional provinces besidesChachoengsao, Chon Buri and Rayong.


https://www.bangkokpost.com/business/news/1573390/education-joins-list-of-targeted-industries

Education joins list of targeted industries10 November 2018


https://www.bangkokpost.com/business/news/1573390/education-joins-list-of-targeted-industries

CP, BTS groups set to bid for airport link high-speed railway12 November 2018

19

TWO RIVAL CORPORATE groups – Charoen Pokphand (CP) and BTS Holdings Plc – are expected to submit their bids today for construction of a high-speed rail linking the three main internationalairports – Suvarnabhumi, Don Mueang and U-tapao – worth a total of Bt220 billion. Acting governor of the State Railway of Thailand, Voravuth Mala, said that he expected at least two groups wouldsubmit their bids for the high-speed railway project today after 31 had bought the terms of reference (TOR) document earlier. “We hope two groups would submit their bids and if they do so it wouldtake about one month for deliberations before we can pick the winning bid,” he said. He said that SRT was open to embracing high-speed rail technology, and did not favour any particular technologyfrom any country. Investors will have to demonstrate the advantages of the technology they choose, he said. Bidders could also find more new investors to join the project later, but they must be amongthose who had bought the TOR document. So if PTT Group wants to invest with the winner, it can do, he said. An informed source at SRT said that investors could choose any train technology thatmeets international standards such as Chinese Train Control System (CTCS), European Train Control System (ETCS) or Automatic Train Control (ATC) from Japan. The financial cost is likely to be themost important factor, which will decide who will win the bidding, according to the source. Adhiruth Thothaveesansuk, CP’s head for high-speed train coordination, said that the CP-led consortiumwas ready to submit its bid today. The consortium comprises Charoen Pokphand Holding, a subsidiary of CP, China Railway Construction Corporation Limited, Bangkok Expressway and Metro Plc,Italian-Thai Development, Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development, CITIC Group Corporation, China Resources (Holdings) Company Limited,Siemens, Hyundai, Ferrovie dello Stato Italiane, CRRC-Sifang and Japan Bank for International Cooperation (JBIC). A source said that the CP-led consortium has a high chance of winning thebidding due to its strong financial base and the qualifications of CP’s partners. Meanwhile, another group led by BTS Group Holdings also announced it would join the bidding. Surapong Laoha-Unya,chief executive officer of BTS, said that the group would be submitting its bid today. BTS has formed a group called BSR, partnering Sino-Thai Engineering and Construction Plc and RatchaburiElectricity Generating Holding Plc. Keeree Kanjanapas, chairman of the BTS, said earlier that the group was ready to compete as BTS has the experience of operating the Skytrain in Bangkok, Sino-Thai has experience in construction and there were about five commercial banks that were ready to support the group with lending up to Bt120 billion. Patchara Samalapa, president of Kasikornbank,said KBank would join with other banks in lending for this high-speed rail project. And as it is a huge project, KBank will be part of syndicated loans

Source: THE NATION




Two consortia submitted bids for a high-speed railway project linking Don Mueang, Suvarnabhumi and U-Tapao airports on the first day of bidding, with more expected to come onboard later. BSR Joint Venture, a consortium led by BTS Group Holdings Plc, was the first group submitted the documents when the State Railway of Thailand started accepting thedocuments on Monday. Other partners in BSR include two listed Thai companies -- Sino-Thai Engineering and Construction Plc, a construction firm of which Bhumjaithai partyleader Anutin Charnveerakul is a major shareholder, and Ratchaburi Electricity Generating Holding Plc, 45%-owned by the Electricity Generating Authority of Thailand. The otherconsortium, led by Charoen Pokphand Group, entered the contest in the afternoon. Its business partners include China Railway Construction Corporation Ltd, Bangkok Expresswayand Metro Plc, Italian-Thai Development Plc, CH. Karnchang Plc, Japan Overseas Infrastructure Investment Corp for Transport & Urban Development, Citic Group, Siemens,Hyundai, Japan Bank for International Cooperation and Ferrovie dello Stato Italiane SpA. The 224-billion-baht bullet-train project is an integral part of the Eastern EconomicCorridor scheme promoted by the government. It links Suvarnabhumi and Don Mueang airports in Bangkok with U-Tapao in Rayong, which was promoted to be an airline hubserving the scheme and the tourism sector in Pattaya and other eastern provinces. CP Group vice-chairman Adiruth Thothaveesansuk claimed on Sunday that the CP-led investmentgroup would bring in "world-class knowledge, experience and expertise" to the train project. BSR Joint Venture also joins a race to win the 224-billion-baht train project linkingSuvarnabhumi, Don Mueang and U-Tapao airports. (Photo by Pornprom Satrabhaya) Industry Minister Uttama Savanayana said in May he expected five big bidders to vie for theairport train project. Seven potential bidders, including PTT Plc and ITD, turned up at the first day of the auction process in June. PTT, which earlier had shown interest in expandingits business from oil to rail, decided in October to back off from the plan while ITD joined the CP-led consortium.


https://www.bangkokpost.com/business/news/1574626/bts-cp-consortia-enter-bid-for-airport-train-project

BTS, CP consortia enter bid for airport train project12 November 2018


https://www.bangkokpost.com/business/news/1574626/bts-cp-consortia-enter-bid-for-airport-train-project

The Commerce Ministry wants to promote coordination of economic development between countries of the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy(ACMECS) and China, aiming to attract more Chinese investment and a cushion against impact from the Sino-US trade row. Commerce Minister Sontirat Sontijirawong saidThailand proposed the cooperation to Chinese economic officials to enhance multilateral linkages and expand the size of each economy as well as the One Belt, One Road initiative(OBOR). The linkage is also to include the Pan-Pearl River Delta, the Guangdong-Hong Kong-Macau Greater Bay area, the Mekong-Lancang Cooperation, the Greater MekongSubregion and ACMECS, which include Myanmar, Laos, Cambodia, Vietnam and Thailand. Thailand's Commerce Ministry aims to be the focal point for organising meetings,pushing forward the signing of economic cooperation between China and ACMECS countries. "The Pan-Pearl River Delta makes up several important economic development areassuch as Guangdong, Hong Kong, Macau and Shenzhen," said Mr Sontirat. Thailand has a geographical advantage for connectivity for the Nanning-Singapore Economic Corridor andthe OBOR, he said. In February 2019, Hong Kong plans to open a Hong Kong Economic and Trade Office in Thailand to promote overseas investments, with Thailand acting as agateway for investment in Asean countries for Hong Kong, and for Asean countries to invest in Hong Kong. Mr Sontirat said Thailand is a good location for Chinese investors aimingto relocate their factories into Southeast Asia. The move will increase export volume in the short run and cushion against the Sino-US trade row, he said. Thailand will benefit frominvestment expansion, employment opportunities and technological development, said Mr Sontirat. "China is among the top 10 foreign investors in Thailand. With at least 1.4 billionpeople and strong economic growth, China plays a vital part in the global economy," he said. For the first nine months of this year, bilateral trade between Thailand and China toppedUS$45.71 billion (1.5 trillion baht), up 11.6% year-on-year.


https://www.bangkokpost.com/business/news/1574790/commerce-officials-promoting-chinese-investment-in-asean

Commerce officials promoting Chinese investment in Asean13 November 2018


https://www.bangkokpost.com/business/news/1574790/commerce-officials-promoting-chinese-investment-in-asean

SINGAPORE: Prime Minister Prayut Chan-o-cha vowed Tuesday to push for greater Asean connectivity while highlighting Thailand's efforts to ease regulatory processes that could impede the digital and innovationeconomy to attract businesses and investors. He was speaking in Singapore at the Asean Business and Investment Summit 2018, ahead of the opening of the 33rd Asean Summit. Asean is currently chaired by Singaporebut Thailand will take over in January, which the Thai premier described as a "great honour". "I promise to continue pushing for more connectivity for Asean, in both the public and private sectors, to strengthenbusinesses and investment so Asean can become an outstanding destination for businesspeople and investors worldwide," he said. Asean's dynamic nature would help foster the sustainable growth of a people-centricglobal economy where no one gets left behind, he added. In 2017, the bloc saw trade jump 14.1% to hit US$2.6 trillion. Of this total, 22.9% was among Asean members, Gen Prayut said. "Foreign direct investment [FDI]in Asean in 2017 grew 11.6% [and] to be worth $137 billion. Of this, 19.4% came from within [Asean]. We can say Asean is the biggest investor in this region," he said. "These statistics are just one indicator showing[Asean's] economic potential as well as the confidence the business community and investors have toward the bloc," he said, citing the economic climate, globally standardised regulations, and more connectivity as thekey factors. Thailand has also adopted a so-called "Master Plan on Asean Connectivity 2025: MPAC 2025", which focuses on sustainable infrastructure, digital innovation, seamless logistics, regulatory excellence andpeople's enhanced mobility for the development, dubbed Seamless Asean. The regional bloc is also pushing for closer ties to the sub-region and other regions. Thailand is expediting the regulatory guillotine to change thecomplexity of required procedures in doing business, he said. "Currently we have over 700,000 handbooks related to licence requests, both in the central and local areas," he said. "We aim to reduce the number oflicences and handbooks as much as possible. At this stage, we expect to reduce the number to not more than 2,000-3,000, mainly those issued by the central [government]," he said. He said a new electronic system forcustoms would help promote Asean's goal of doubling regional trade by reducing costs by 10% by 2020. Thailand is working on going digital and eyeing amendments to legislation including the electronics transactionlaw, data protection law and cyber security law, he said. It is also building platforms for digital IDs and a one-stop immigration service system, he added. He said Thailand has invested in wiring the country, supportingSMEs and startups, and promoting digital innovation as part of its Thailand 4.0 strategy. Some US$93 billion has been set aside to develop infrastructure and logistics, especially in the Eastern Economic Corridor (EEC)in three provinces east of Bangkok, to better link the region up, the premier said. Examples include new high-speed trains and railways, the expansion of deep-sea ports and the development of domestic airports and anew aviation centre. David Walker, the managing director of Berlanga Group, which does business in Myanmar, received Gen Prayut's comments positively. He said that promoting science, technology and innovationwas crucial, as was bringing internet connectivity to rural areas. "Thailand has been very stable [lately], as far as I can see. And for business people, that's very good," he said. "I hope the [February 2019] elections go well.The people and the country will benefit from the general stability." A senior banker from Japan, who asked not to be named, said he was familiar with Gen Prayut's ideas but questioned why the Thai leader had failed tospeak about policy continuity or stability next year -- important information investors are more keen to know about. Attending the Asean Summit and related meetings are leaders from 18 countries that are members ofthe East Asia Summit (EAS). Members comprise the 10 Asean nations and Asean dialogue partners Russia and the US. Russian President Vladimir Putin, US Vice President Mike Pence, Chinese PM Li Keqiang andMyanmar's State Counsellor Aung San Suu Kyi have been representing their respective countries at the summit. Singapore invited Canadian Prime Minister Justin Trudeau as the G7 chair, Chilean President SebastianPinera -- Chile chairs the Asia-Pacific Economic Cooperation -- and Christine Lagarde, managing director of the International Monetary Fund. Other issues to be raised include the development of a RegionalComprehensive Economic Partnership free trade pact, a code of conduct for disputed areas in the South China Sea, Myanmar's Rakhine State and peace on the Korean Peninsula. The Asean handover ceremony will takeplace tomorrow.


https://www.bangkokpost.com/business/news/1575450/pm-to-prioritise-asean-connectivity

PM to prioritise Asean connectivityPrayut talks of nation's role as bloc's new chair14 November 2018


https://www.bangkokpost.com/business/news/1575450/pm-to-prioritise-asean-connectivity

EGCO pushes on with Korea investment deal15 November 2018

23

ELECTRICITY Generating Public Co Ltd Group (EGCO) plans to push ahead with the purchase of a 49 per cent ownership stake in Paju Energy Service Co Ltd (Paju ES), which operates a power plantin South Korea. The signing of the agreement – reflecting the company’s pursuit of investment opportunities in Asia - is scheduled to take place this month, involving investment of Bt26.2 billion,EGCO said. The agreement is expected to close in January. EGCO said in a filing to the Stock Exchange of Thailand yesterday that the stake purchase would be made through its wholly ownedsubsidiary Gen Plus B.V. The investment was approved by its board on October 19 and will be subject to relevant closing conditions under the transaction documents. Paju ES owns and operates thePaju Power Plant, a combined cycle gas-fired power facility in Gyeonggi province. The plant has a production capacity of more than 1,800 MW and uses imported liquefied natural gas (LNG) as fuel.Paju ES is owned and was developed by SK E&S Co Ltd (SK E&S), the first private power company to directly import LNG from overseas markets to South Korea, including LNG from producers inAustralia, Indonesia and the United |States, among other countries worldwide. The Paju ES power plant began operation in February 2017 and supplies electricity to Korea Electric Power Corporation,the sole off-taker of wholesale power generation in South Korea, through Korea Power Exchange, the market operator of the South Korean cost-based pool power market. “South Korea has a robustpower market with strong prospects for steady growth in power demand. The country is focused on promoting the use of clean LNG fuel as well as renewables to meet this demand. This investmentrepresents a unique and important opportunity for EGCO,” Jakgrich Pibulpairoj, EGCO group president, said. “We see a number of business synergies between SK E&S’s gas to power business andprospective development opportunities in Thailand and other core markets in Asia where gas to power projects have become an important means of providing reliable, clean power. “Moreover, SK E&Sis recognised as an LNG to power specialist with business interests throughout the entire LNG value chain. The partnership that will begin with our co-investment in Paju ES will provide an excellentplatform for promoting this type of business together in Thailand and elsewhere in the region. Beyond gas to power opportunities, we will also explore renewables as an area for potential futurecollaboration in Korea and elsewhere in Asia.” EGCO Group’s operating result for the first nine months of 2018 showed the net profit of Bt21.754 billion, an increase of 117 per cent when compared tothe same period last year, due to the divestment of three assets in the first quarter. If considering the third quarter of 2018, the company recorded Bt3.947 billion net profit, or 12 per cent higher thanthe previous year, mainly from exchange rate appreciation. As of October 31, EGCO Group runs 26 operating power plants with total equity contracted capacity of 4,260 MW in five countries across theAsia Pacific region – Thailand, Laos, the Philippines, Indonesia and Australia. It has three projects under construction with total equity contracted capacity of 544 MW.

Source: THE NATION

http://www.nationmultimedia.com/detail/Corporate/30358542


http://www.nationmultimedia.com/detail/Corporate/30358542

For further information please contact:

3 7 www.pwc.com/th

© 2018 PricewaterhouseCoopers FAS Ltd. All rights reserved. PwC refers to the Thailand member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

Krieattisak Sriaram: +662 844 2163: [email protected]

thailand infrastructure news€¦ · robotics for industry; logistics and aviation; biofuels and...

Documents