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Allens advises Thai Government on infrastructure funding framework

20 February 2009

Allens Arthur Robinson (Allens) has advised the Thailand Government on its new Public Private Partnership (PPP) framework aimed at providing funding for major infrastructure projects across the country.

The new PPP framework relates to projects valued in excess of THB 1,000 million and outlines how the public and private sector can work together in a transparent manner to fund and build infrastructure such as roads and hospitals.

'Governments across Asia are looking to infrastructure projects to help alleviate the impact of the global economic downturn, but securing funding is a significant issue,' said Allens' Projects Partner Leighton O'Brien. 'PPPs provide an opportunity for risk and costs to be shared with the added benefit that they can deliver cost savings of up to 20 per cent on major projects.

'We expect to see other countries around Asia adopt a PPP framework this year,' said Mr O'Brien. 'Each nations' PPP framework may have its own peculiarities but, in essence, I'd expect them to be broadly similar in structure which is good news for private sector companies who are bidding for project work across the region,' said Mr O'Brien.

PPPs were originally developed in the UK and have been adopted in Australia where a national framework was recently put in place. Thai Government officials undertook a study tour of both countries before deciding to adopt an Australian-type model.

Where a PPP is identified as the most efficient procurement method, the newly established Framework provides detailed guidance to Government agencies in relation to governance and process. 'It provides an excellent base for some significant projects that will bring real benefits to Thailand in years to come,' said Mr O'Brien.

Based in Sydney, Mr O'Brien advised the Thailand Government liaising with Allens' Partner Marcus Clarke in Bangkok and Thai law firm Siam Premier with whom the firm has an association. The firms combined with KPMG in Sydney and Bangkok in the advisory role to the Thai Government.

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Notes for editors.

Allens Arthur Robinson has staff in 14 cities and eight countries across the Asia Pacific.