RailSectorDevelopment

KingdomofThailand
The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute
(ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included
in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

JindaratViriyataveekul
Executive DirectorofthePublic Infrastructure ProjectFinancing Bureau
PublicDebt managementOffice,Ministry ofFinance,Thailand
PROJECTFINANCING ANDSUSTAINABLEDEVELOPMENTOFRAILWAYINFRASTRUCTURE
11Aug2016

Content
CurrentStateofThailandTransportationInfrastructure
TransportInfrastructureDevelopmentMasterPlan

20152022
RailSectorHighlights
FinancingTransportationInvestment
Recommendations

CurrentStateofTransportationInfrastructureinThailand

Source:MOT,Nov2015

Current

MasterPlan

Highlight

Financing

Recommendations

CurrentStateofTransportationInfrastructureinThailand
BangkokMassRapidTransit

Total100km.+23Km

20.8km

15km

28km
24km
7.5km

5.25km

Purple Line
Operate on
Aug 6th , 2016

23km

Current

MasterPlan

Source:MOT,Nov2015

Highlight

Financing

Recommendations

ThailandTransportInfrastructureDevelopment
MasterPlan2015 2022(Total$112.8Billionor3.3tril.Baht)
Intercity
RailNetwork
Upgrade rail
infrastructure and
overall system
Build double-track in
6 main rails with
their extension to
respective borders

HighwayNetwork

PublicTransportation
NetworkinBangkok
&Metropolitan

Develop 4 lane-road
Extend mass transit railway
networks linking Thailands system in Bangkok and vicinity
key economic regions and Improve quality of service and
borders areas
safety of mass transit bus as
Construct new motor ways
well as to enhance its
Develop facilities along the environment standard
main roads such as
container yards

Freight transportation by rail increases from

2.5% to 5%
Average operating speed of freight rail
increases from 39 to 60 km./hr while that of
passenger rail increases from 60 to 100 km./hr
The number of rail passengers increases from
45 to 75 million passenger trips/year
Current

MasterPlan

Proportion of people
travelling using
mass transit system
increases from
5% to 30%

Highlights

AirTransport
Capacity
Enhancement
Enhance airport
capacity to be the
regional center of
air transportation
Establish the
aviation industrial
estates

Maritime
Transport
Development
Improve seaport on
both Thai gulf and
Andaman sea

Suvarnabhumi and Don

Mueng Airports capacities
increase to 90 million
passenger by 2016
U-Tapao Airports capacity
increases from 800,000 to
3 million passengers by
2017
Air transportations
management capability
increases from 600,000
trips/year to 1.4 trips/ year
by 2024

Financing

Proportion of
water freight
transportation
increases from
15% to 19%

Source:MOTJune2015

Recommendations

InterCityRailNetworktotal3,237km
ActionPlan:6ProjectsTotal903km

1.
2.
3.
4.
5.
6.

Chachengsao- Kang Koi : 106 km

Jira Khon Kaen : 185 km
Prachuab Kiirikan-Chumpon : 167 km
Lopburi Pak Nam Pho : 148 km
Mab Kabao Jira : 132 km
Nakhon Pathon Hua Hin : 165 km

2nd phrase:8ProjectsTotal1,646km
3rd phrase:3ProjectsTotal688km

Current

MasterPlan

Highlights

Financing

Recommendations

ActionPlan2016:RailSector
MeterGauge:5Projects

StandardGauge:4Projects

1M.

1.435M.

MassRapidTransit:4projects

InternationalCooperation

BKKCNX
EWCorridor
SouthernCorridor

Current

MasterPlan

Highlight

Financing

Recommendations

20062015:ThailandinvestedApprox.
$6Billion/Year(1.8%ofGDP) inTransportSector
Million$

2.50%

9,000.00
8,000.00
7,000.00

1.90%

2.01%

2.14%
1.94%

1.99%
2.00%

1.65%

1.76%

1.64%

1.54%

6,000.00

1.47%

5,000.00
1.08%

4,000.00

0.99%
0.85%

0.94%

3,000.00

0.85%

0.82%

0.89%

0.85%

0.62%

1.50%

1.00%
0.52%

2,000.00

0.50%

1,000.00

0.00%
2006

2007

2008

2009

2010

2011

6.Motorway Fund
5.Roadmaintenanceproject

2012

2013

2014

2015

Budget to GDP
Total Transport Inv to GDP

4.TKK MinistryofTransport
3.Borrowing
2.SOERevenue Transportation Sector
1.GovBudgetTransportation Sector

Current

MasterPlan

HiLight

Source:BudgetBureau,MOT,NESDB,PDMO,SEPO

Financing

Recommendations

FinancingTransportInvestmentActionPlan2016
BorrowingremainsmajortoolwhilePPPsincreasinglybecomesaprominentmethod
SourceofFund

ActionPlan:Biddingin20152016
Mode

20ProjectsTotal$60Bil.(1.796TrillionBt)
Airport Motorway
3%
9%
Water
Transport
Rail - Meter
Gauge
7%

MRT
22%

RailStandardGauge
59%

PPPs

Rail MeterGauge

3.9

Rail StandardGauge

35.5

MRT

13.2

SOEs

WaterTransport

0.1

Airport

1.7

Total

Borrowing

SOEsRev.
PPPs
TollRoadFund
Total

MasterPlan

Borrow
ing

5.3

Budget

Current

Budget

Motorway

HiLight

59.8

% 2016
37.9 63% 0.11
7.1 12% 0.47
1.9 3% 0.06
12.6 21%
0.5 1% 0.07
59.8 100% 0.70

SourceofFund $Billion
Source:MOT,PDMO

$Bil.

Financing

2017
.83
1.71
0.51
0.42
0.13
4.60

2018 2019-2022
2.29
33.69
2.18
2.72
0.80
0.49
0.61
11.53
0.14
0.13
6.02
48.66

Recommendations

InfrastructureFinancingOptions
Sources
Budget

Use

Limitations

projects with local currency

return/expenditure

Limited resources

SOEs Revenue

SOE projects with HIGH

financial return

SOEs Revenue does not meet its rapid demand of

infrastructure investment

Borrowing/Bond/
Debenture

projects with foreign currency

return/expenditure

Public Debt should not exceed the fiscal

sustainability level at 60% of GDP to ensure stability
and credibility

SOE Public
Offering/
Privatization

projects with HIGH financial

return (Financial Viable)

Needs mature Industry structure and public

understanding

PPP

projects with HIGH financial

return (Financial Viable)

Alternative source for infrastructure investment and

increases private participation but may be restricted
in certain subsectors

Brown Field Projects

Another solution to invest sustainably despite higher

cost of capital and more complexity compared to
plain debt financing

Infrastructure
Fund

PublicDebt/GDP

Fiscal
Sustainability
Current

Debtrepayment/GDP

MasterPlan

HiLight

Financing

Recommendations 10

SourcesofFund:GovernmentorSOEs?
High Financially Viable : SOEs

Expressway

SOE Revenue/
Borrowing

Airport

Electricity

Project
Finance

PPPs

Energy

Infrastructure
Fund

Low Financially Viable with High Economic Return : Government

Rail & MRT

Public Health

Budget

Current

MasterPlan

Road System

Government
Borrowing

HiLight

Education

PPPs

Financing

Recommendations 11

FundingSourcesalsodependonPurposesofExpenditure
Financing
Source/Sector

Metropolitan
MassTransit

ProvincialRail
Network

Highways
/Motorway

Water
Transport

AnnualBudget

Land
acquisition
Consultants

Land
acquisition
Consultants

Land
acquisition
Consultants

Landacquisition
Consultants
Construction

Government
Borrowing

CivilWorks

CivilWorks
Signaling
System

CivilWorks

CivilWorks
(LargeProjects)

SOERevenue
&Borrowing

RollingStock
Signaling
System

PPPs
Infrastructure
Funds

RollingStock

Current

Equipmentand
tools

RollingStock
CivilWorks
Fee
RollingStock
collection
system
Maintenance

MasterPlan

HiLight

Financing

Air
Transport

Consultants
CivilWorks
Equipment
andtools

Recommendations 12

FinancingActionPlan2016:RailSector
MeterGauge:5Projects
Gov

SOE

Borrowing

Borrowing

Budget

StandardGauge:4Projects
Budget

Gov

SOE

Borrowing

Borrowing

Partners
Loan

1M.

1.435M.

MassRapidTransit:4projects
Budget

Gov

SOE

Borrowing

Borrowing

InternationalCooperation

PPP

Current

MasterPlan

HiLight

Financing

Recommendations

13

LawandRegulations
BudgetExpenditureAct

Budget

Borrowing

BudgetExpendituresforFY2016=2,720,000Mil.THB
CurrentExp.2,100,117.9Mil.THB CapitalExp.544,354.3Mil.THB
PrincipalRepayments61,991.7Mil.THB
ExpendituresforReplenishmentofTreasuryAccountBalance13,536.1Mil.THB

PublicDebtManagementActB.E.2548(2005)andrelated
regulations
EmergencyDecreesthatallowMOFtoborrowtomaintain
economicstability

PPP

PrivateInvestmentinStateUndertakingActB.E.2556
(2013)(PPPAct)

SOE
Revenue

SOEEstablishmentLawsthatauthoriseSOEtoborrow

Current

MasterPlan

HiLight

Financing

Recommendations 14

SustainableDevelopmentofRailSector
PrivateParticipation

InternationalCooperation

Urban/RuralDevelopmentPlan

Current

MasterPlan

PropertyTaxScheme

HiLight

Financing

Recommendations 15

Recommendations
Prioritisingtheprojects/Settingaclearandimplementable
developmentplan
Clear,effectiveandreliablelegalframework
PromotePrivateParticipation
StimulateRegional&InternationalCooperation
Securesustainablefinancingsource
Concreteurban/ruraldevelopmentplan
Newpropertytaxscheme

Current

MasterPlan

HiLight

Financing

Recommendations 16