Thailand ready to move forward with Private Public Partnership (PPP) model
By Jon FernquestPrivate Public Partnerships (PPP) made the news last year in Thailand as an important part of the 2010 government budget (Read article).
The infographic below shows the various kinds of partnerships between the government and private companies that are possible. Definitions are given for the various terms after the graphic.
Hitachi has used PPPs for providing Thailand with hard disk drive technology (Read article).
The use of PPPs has been discussed before for rail lines within the city of Bangkok (Read article).
Today's article discusses some additional Thai projects that may use the PPP approach in the near future.
A second PPP related article in the Bangkok Post yesterday discussed a new government fund that will raise money for state enterprises from the Thai public (Read article)
Today's article follows the vocabulary definitions:
Private Public Partnerships (PPP,
P3s) -
a government service or private business venture which is funded and
operated through a partnership of government and one or more private
sector companies (See Wikipedia)
partnership - joining together to work to achieve shared goals
fund - money collected and saved for a special purpose in the future
enterprise - company
state enterprise - a company owned by the government
infographic - visual representations of information and data founds in newspapers, articles and books (See Wikipedia)
a term - a word with a special meaning in a subject (example: an architectural term)
privatisation - when a state enterprise is changed into a company with private owners
buy-build-operate A BBO is a form of asset sale that includes a rehabilitation or expansion of an existing facility. The government sells the asset to the private sector entity, which then makes the improvements necessary to operate the facility in a profitable manner.
build-own-operate (BOO) - "The contractor constructs and operates a facility without transferring ownership to the public sector. Legal title to the facility remains in the private sector, and there is no obligation for the public sector to purchase the facility or take title. A BOO transaction may qualify for tax-exempt status as a service contract if all Internal Revenue Code requirements are satisfied." (See types of PPP partnerships)
contractor - a company hired to do a work project
public sector - the government
private sector - all the privately owned businesses in an economy
facility - a specially equipped place where some activity takes place (example: an athletic facility, a production facility)
transferring ownership - chaging ownership from one person to another person
tax-exempt status - do not have to pay taxes
Internal Revenue Code - the name of tax laws in the US
Lease-Build-Operate (LBO), Lease-Develop-Operate (LDO), Build-Develop-Operate (BDO) - "Under these partnerships arrangements, the private party leases or buys an existing facility from a public agency; invests its own capital to renovate, modernize, and/or expand the facility; and then operates it under a contract with the public agency. A number of different types of municipal transit facilities have been leased and developed under LDO and BDO arrangements." (See types of PPP partnerships)
Build-Own-Operate-Transfer, Build-Operate-Transfer (BOT) - a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project (See Wikipedia and types of PPP partnerships)
partnership - joining together to work to achieve shared goals
fund - money collected and saved for a special purpose in the future
enterprise - company
state enterprise - a company owned by the government
infographic - visual representations of information and data founds in newspapers, articles and books (See Wikipedia)
a term - a word with a special meaning in a subject (example: an architectural term)
privatisation - when a state enterprise is changed into a company with private owners
buy-build-operate A BBO is a form of asset sale that includes a rehabilitation or expansion of an existing facility. The government sells the asset to the private sector entity, which then makes the improvements necessary to operate the facility in a profitable manner.
build-own-operate (BOO) - "The contractor constructs and operates a facility without transferring ownership to the public sector. Legal title to the facility remains in the private sector, and there is no obligation for the public sector to purchase the facility or take title. A BOO transaction may qualify for tax-exempt status as a service contract if all Internal Revenue Code requirements are satisfied." (See types of PPP partnerships)
contractor - a company hired to do a work project
public sector - the government
private sector - all the privately owned businesses in an economy
facility - a specially equipped place where some activity takes place (example: an athletic facility, a production facility)
transferring ownership - chaging ownership from one person to another person
tax-exempt status - do not have to pay taxes
Internal Revenue Code - the name of tax laws in the US
Lease-Build-Operate (LBO), Lease-Develop-Operate (LDO), Build-Develop-Operate (BDO) - "Under these partnerships arrangements, the private party leases or buys an existing facility from a public agency; invests its own capital to renovate, modernize, and/or expand the facility; and then operates it under a contract with the public agency. A number of different types of municipal transit facilities have been leased and developed under LDO and BDO arrangements." (See types of PPP partnerships)
Build-Own-Operate-Transfer, Build-Operate-Transfer (BOT) - a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project (See Wikipedia and types of PPP partnerships)
Many approaches to PPP
Wichit Chantanusornsiri16/01/2010
Authorities have identified more than 100 projects for possible implementation as public-private partnerships over the next 10 years.
identified
- named ระบุชื่อ
implementation - the process of making something such as a plan, system, idea or law start to work and be used การบังคับใช้ (กฎหมาย)
implementation - the process of making something such as a plan, system, idea or law start to work and be used การบังคับใช้ (กฎหมาย)
Supa Piyajitti, director-general of the State Enterprise Policy Office, said the overall value of the projects exceeded 1.35 trillion baht
Public-private partnership is a catch-all term referring to ventures between the government and the private sector. Models can vary considerably from build-transfer-operate concessions, such as those used by local mobile phone operators, to joint ventures to service agreements provided by private companies
catch-all term - a word that
includes everything
sector - a part of a country's economic or business activity ภาคเศรษฐกิจ
models - descriptions that help you understand how a complicated system works
vary considerably - are very different
build-transfer-operate - when private sector company builds an infrastructure project, operates it under a concession and when the concession is finished transfers ownership of the project to the government
concession - when the government gives a company permission to do some business in exchange for a fee
transfer - to move someone or something from one place, vehicle, person or group to another ย้าย
transfer - to official arrange for someone else to be the owner of something โอน
local - in the area that you live, or to the particular area that you are talking about ท้องถิ่น
joint - done together; belonging to or shared between two or more people ความร่วมมือกัน
sector - a part of a country's economic or business activity ภาคเศรษฐกิจ
models - descriptions that help you understand how a complicated system works
vary considerably - are very different
build-transfer-operate - when private sector company builds an infrastructure project, operates it under a concession and when the concession is finished transfers ownership of the project to the government
concession - when the government gives a company permission to do some business in exchange for a fee
transfer - to move someone or something from one place, vehicle, person or group to another ย้าย
transfer - to official arrange for someone else to be the owner of something โอน
local - in the area that you live, or to the particular area that you are talking about ท้องถิ่น
joint - done together; belonging to or shared between two or more people ความร่วมมือกัน
The use of PPP has risen significantly worldwide for utilities, public services or basic infrastructure. In many cases, the use of PPP is financial, as investment costs and risks are shifted to the private sector. In other cases, PPP has grown out of a recognition that certain services can be provided cheaper and better by the private sector than the state
significantly
- in an important way อย่างสำคัญ
infrastructure - a set of systems within a place or organisation that affect how well it operates, e.g., the telephone and transport systems in a country or the system of train tracks that a railway uses สาธารณูปโภค
infrastructure - the set of systems within a place or organisation that affect how well it operates, for example the transport and communication systems in a country ระบบสาํธารนูปโภค
infrastructure - the set of systems within a place or organisation that affect how well it operates, for example the transport and communication systems in a country ระบบสาํธารนูปโภค
state - condition สภาพ
recognition - an understanding that some fact is true, that some situation exists
state - government รัฐ
infrastructure - a set of systems within a place or organisation that affect how well it operates, e.g., the telephone and transport systems in a country or the system of train tracks that a railway uses สาธารณูปโภค
infrastructure - the set of systems within a place or organisation that affect how well it operates, for example the transport and communication systems in a country ระบบสาํธารนูปโภค
infrastructure - the set of systems within a place or organisation that affect how well it operates, for example the transport and communication systems in a country ระบบสาํธารนูปโภค
state - condition สภาพ
recognition - an understanding that some fact is true, that some situation exists
state - government รัฐ
Korbsak Sabhavasu, former deputy prime minister and now the secretary to Prime Minister Abhisit Vejjajiva, has been a strong proponent of PPP models as part of the government's plan to modernise basic infrastructure and strengthen core public services while minimising the impact on annual budgets and the growing public debt
former
- of or in an earlier time; before the present time or in the past
อดีต, แต่ก่อน
deputy - a person who is given the power to do something instead of another person, or the person whose rank is immediately below that of the leader of an organisation รอง, ตัวแทน,ผู้รักษาการแทน
prime - main or most important ที่สำคัญที่สุด
Prime Minister - the leader of a whole country, highest political office in a country
proponent - a person who speaks publicly in support of a particular idea or plan of action ผู้เสนอ, ผู้สนับสนุน, ผู้เห็นด้วย
core - the most important or most basic part of something ส่วนสำคัญ
impact - an effect or influence ผลกระทบ
annual - happening once a year ประจำปี
debt - an amount of money that you owe หนี้
deputy - a person who is given the power to do something instead of another person, or the person whose rank is immediately below that of the leader of an organisation รอง, ตัวแทน,ผู้รักษาการแทน
prime - main or most important ที่สำคัญที่สุด
Prime Minister - the leader of a whole country, highest political office in a country
proponent - a person who speaks publicly in support of a particular idea or plan of action ผู้เสนอ, ผู้สนับสนุน, ผู้เห็นด้วย
core - the most important or most basic part of something ส่วนสำคัญ
impact - an effect or influence ผลกระทบ
annual - happening once a year ประจำปี
debt - an amount of money that you owe หนี้
Current PPP projects include plans to build eight new light-rail mass transit routes in Greater Bangkok, a programme with a total cost of 350.4 billion baht.
mass
- large numbers จำนวนมหาศาล
transit - the act of moving from one place to another การเดินทางผ่าน
mass transit - a transportion system for moving large numbers of people around a city or region everyday
light rail - small trains used for public transportion or mass transit in a city (See Wikipedia)
transit - the act of moving from one place to another การเดินทางผ่าน
mass transit - a transportion system for moving large numbers of people around a city or region everyday
light rail - small trains used for public transportion or mass transit in a city (See Wikipedia)
The 60.1-billion-baht Purple Line, running from Bang Yai to Bang Sue, involves state investment of 46.9 billion for civil works and another 13.2 billion in investment by the private sector, primarily for the trains and operating equipment. The 83.1-billion-baht Blue Line, from Bang Sue-Tha Phra-Hua Lamphong, also splits investment costs, with the state responsible for 60.9 billion and the private sector the rest.
civil
works - construction projects done by the government
Another major PPP venture involves six logistics projects planned for the Eastern Seaboard, valued at a total of 100 billion baht and including a 56.6-billion-baht high-speed rail link from Bangkok to Rayong. Over the course of the five-year project, the government will be responsible for civil works, land expropriation and train procurement, while the private sector bears expenses for mechanical and engineering expenses, maintenance and operating costs
venture
- a new activity, usually in business, which involves risk or
uncertainty ธุริกิจเสี่ยงแต่สามารถทำกำไรได้
logistics - the practical arrangements that are necessary in order to organise something successfully, especially something involving a lot of people or equipment
link - to connect เชื่อม
will - a determination to do something, despite any difficulties or opposition ความตั้งใจ
will - a legal document that explains what you want to be done with your money and property after you die พินัยกรรม
land - to get or achieve something good, especially in a way which seems easy or unexpected ได้รับ
procurement - the process of buying supplies or equipment for a government department or company การจัดซื้อวัสดุ เครื่องมือสำหรับบริษัท หรือหน่วยงานของรัฐ
maintenance - work that is done to keep something such as a building, machine, or piece of equipment repaired and in good condition การซ่อมบำรุง
logistics - the practical arrangements that are necessary in order to organise something successfully, especially something involving a lot of people or equipment
link - to connect เชื่อม
will - a determination to do something, despite any difficulties or opposition ความตั้งใจ
will - a legal document that explains what you want to be done with your money and property after you die พินัยกรรม
land - to get or achieve something good, especially in a way which seems easy or unexpected ได้รับ
procurement - the process of buying supplies or equipment for a government department or company การจัดซื้อวัสดุ เครื่องมือสำหรับบริษัท หรือหน่วยงานของรัฐ
maintenance - work that is done to keep something such as a building, machine, or piece of equipment repaired and in good condition การซ่อมบำรุง
On the other hand, a 2.02 billion baht project to develop a container depot will see the Port Authority of Thailand responsible for basic infrastructure while equipment and services are supplied by private operators.Five major nationwide transport projects worth a total of 711.2 billion baht are also being considered for PPP models, including a 184-billion-baht high-speed train running 745 kilometres from Bangkok to Chiang Mai and a 271-billion, 940-km high-speed rail link from Bangkok to Padang Besar
depot
- a building where supplies or vehicles are kept คลัง
nationwide - throughout a whole country ทั่วทั้งประเทศ
transport - to move people or things from one place to another ขนส่ง
nationwide - throughout a whole country ทั่วทั้งประเทศ
transport - to move people or things from one place to another ขนส่ง
PPP models are also being considered for seven projects worth 20.7 billion baht to improve waterway transport, five projects worth 42.1 billion for telecoms infrastructure and 59 aimed at upgrading irrigation and water management
improve
- to make better ทำให้ดีขึ้น
irrigation - the process of supplying water to an area of land through pipes or channels so that crops will grow การชลประทาน
irrigation - the process of supplying water to an area of land through pipes or channels so that crops will grow การชลประทาน
(Source: Many approaches to PPP, Wichit Chantanusornsiri, 16/01/2010, link)








