Transcript Source: BOT, PDMO

Project Funding For Infrastructure Development
Infrastructure
Development in Thailand:
in Bangkok
The Way Forward
Sun Vithespongse
Deputy Director-General
Public Debt Management Office (PDMO)
MINISTRY OF FINANCE
January 31, 2007, Shangri-La Hotel
Public Sector Investments
%
Billion
342 Baht
800
14
Crisis
700
12
PI/GDP
11.6%
600
10
Planned
500
8
Megaprojects
400
6
300
258
200
Public Investment(PI)/GDP
205
Other
Investments
=200 BNTHB
0
2
0
2009e
2008e
2007e
2006p
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
Source: BOT, PDMO
4
Ongoing
Public Investment
100
218
PI/GDP
projected to
be around
6-8% in 07-09
P=Preliminary
E=Estimates
Financing of Megaprojects
• Borrowing
− External
− Domestic (Bond market)
• Securitisation
• Public-Private Partnership (PPP)
External/ Public Debt
%
US$ billion
60
30
40
20
20
10
0
0
Forex Reserves
Source: BOT, PDMO
External Debt
Nov-06
40
2004
80
2002
50
2000
100
1998
60
1996
120
Public Debt/GDP
Public Debt/GDP: 41 %
FX Reserves: 62 US$ BN
External Debt: 58 US$ BN
Financing Strategy For Mass Transit
• Basic Infrastructures (Civil works/ Depots/ Stations/ Tracks)
– Financed by the Government
– International Competitive Bidding (ICB)
• Rolling Stocks/ Signaling/ E&M
– Encourage private participation in the form of Public-Private
Partnership (PPP)
Financing Strategy For Mass Transit (Cont.)
Financing Sources
Lines
Unit: Billion Baht
Budget
JBIC
Domestic Loans
PPP
TOTAL
- Blue
11.3
33.9
11.3
17.2
73.6
- Purple
4.9
20.6
6.9
45.7
- Red
3.8
30.2
19.9
13.4
-
TOTAL
20.0
84.7
38.1
30.5
173.3
2. BMA
Budget
External Loans
PPP
TOTAL
- Light Green
1.4
13.5
7.3
22.2
- Dark Green
1.6
13.2
7.9
22.6
TOTAL
3.0
27
15.2
44.8
TOTAL (1+2)
23.0
149.4
45.7
218.1
1. SRT, MRTA
54.0
Financing Strategy For Mass Transit (Cont.)
Unit: Billion Baht
Civil Works
Rolling Stock
Blue
52.5
17.2
Purple
29.2
13.4
Red*
44.2
9.8
Light Green
14.9
7.3
Dark Green
14.7
7.8
TOTAL
165.4
45.5
Civil Works : Government –
Budget (16%), Loans (84%)
Rolling Stocks : PPP
Remarks: * Government plans to finance both civil works and rolling stocks for the Red line
Issues of Concerns
Bond Market Development
• Market size : 4,085 Billion Baht (50% of GDP) at the end of
2006
• Total trading value : 6,955 Billion Baht in 2006
• 2nd Domestic Bond Market Development Plan
− Primary market development : benchmark bonds issuance
− Secondary market development
− Market infrastructure development : securitisation
promotion
Issues of Concerns (Cont.)
Public-Private Partnership
•
•
•
•
Process/ Arrangement
Enabling Environment
Instruments/ Supporting Methodologies
Institutions to Coordinate & Oversee PPP activities
Issues of Concerns (Cont.)
Securitisation
• Waived SPV income tax
• Eliminating related problems such as legal framework and
accounting standard
• Can be used to lower borrowing costs of the PPP projects
THANK YOU