PPP Net Cost system adopted for U-Tapao Airport investment project

BANGKOK, August 31 (TNA) - The Thai government will adopt the Public-Private Partnership (PP) Net Cost system for the U-Tapao Airport investment project in the eastern Rayong Province, where a large number of international visitors are expected to become promising clients of international airlines. Admiral Sophon Watanamongkol, head of the Royal Thai Navy's advisory team, in his capacity as the chairman of the Royal Thai Navy's administrative board for the Eastern Economic Corridor (EEC) Project, told journalists on Friday that under the PPP Net Cost, a private investment firm winning the upcoming official bidding process, will be eligible for enjoying financial returns from its investment and allocating part of its returns to the Thai government as legally-agreed. Admiral Sophon stated that the winning private bidder is required to design and invest in infrastructure development projects necessary for the U-Tapao International Airport, including maintenance plans throughout its contracted period. Admiral Sophon acknowledged an initial study found that the internal rate of return (IRR) of the U-Tapao Airport investment project should be 10-20 per cent, while the return rate for stakeholders should be 11-13 per cent each. According to the senior navy officer, the Royal Thai Navy plans to announce the terms of reference (TOR) of the new aviation investment project and invite interested private firms to participate in a bidding process by October 2018 and to then announce the winning bidder by February 2019. Meanwhile, Minister Attached to the Prime Minister's Office Kobsak Pootrakool affirmed that the contract signing of the U-Tapao Airport investment project will be completed before Thailand's new general election early next year. The minister said he also believed that a large proportion of international visitors to seaside resort Pattaya City in nearby Chon Buri Province, expected to reach 20 million totally in the future from about 10 million now, should become promising clients of international airlines using the U-Tapao International Airport once the new aviation project is opened for public services over the next 5-6 years. (TNA)