Cabinet Meeting Synopsis -- November 03, 2015

Politics News Tuesday November 3, 2015 16:51 —Cabinet Meeting Synopsis (English)

The Cabinet met on Tuesday, November 3, 2015 at Command Building 1, Government House. Some of the resolutions are as follows;

Title: Public-Private Partnership (PPP) Fast Track

The Cabinet approved the measure on Public-Private Partnership (PPP) Fast Track as proposed by Ministry of Finance:

Gist of the matter

Ministry of Finance, as an acting party as stipulated by Private Investments in State Undertakings Act B.E. 2556, has reviewed rules and regulations on the implementation of Public-Private Partnership (PPP) projects according to the Private Investments in State Undertaking Act B.E. 2556, and concluded that concerned agencies need to study respective PPPs in a careful and transparent manner since they are projects related to infrastructure and public services based on the Government’s goals during the next 20-30 years. However, delay has occurred in the implementation of those projects because of incomplete and outdated information, as well as lack of collaboration between leading department and other concerned agencies, and unpreparedness for the next procedures in the implementation. Ministry of Finance, therefore, developed a measure on PPP Fast Track.

In order to lay groundwork on the selection of private firms, and drafting of invitations/ TOR/ investment contract, concerned agencies are authorized to implement the following tasks:

1.Agencies of which representatives are in the selection committee (as stipulated in Article 35 of Private Investments in State Undertakings Act B.E. 2556) are to draft invitation to tender, TOR, and investment contract as soon as respective project is approved by minister overseeing the host agency. Drafting must be completed before the cabinet’s approval of the project.

2.Host agency is authorized to appoint members of the selection committee, and amend draft invitation to tender, TOR, and investment contract, as mentioned in 1, according to the cabinet’s suggestions within 15 days after the cabinet approves the project.

3.Selection committee is to approve draft invitation to tender, TOR, and investment contract within 45 days after the cabinet approves the project.

Since implementation of PPP Fast Track will require a number of personnel from concerned agencies, chairman of PPP Policy Committee is authorized to select PPP projects which will be under the PPP Fast Track, and the PPP Policy Committee is to monitor the implementations in order to attain achievement according to goals and schedule.

Title: Water Resources Management Project (Urgent Phase) under FY2015 Budget (Additional) of Provincial Waterworks Authority (PWA)

The Cabinet agreed in principle on water resources management project (urgent phase) under FY2015 budget (additional) of Provincial Waterworks Authority (PWA) as proposed by Ministry of Interior as follows:

Gist of the matter

Ministry of Interiors reported that according to the Cabinet’s resolution (December 30, 2014), approving water resources management project (urgent phase) under FY2015 budget (additional) of Provincial Waterworks Authority (PWA), PWA is to implement expansion of waterworks system to provide sufficient clean water resources for public consumption, as well as to tackle shortage of water supply in order to alleviate people’s plights. If successfully implemented, 43,000 households will be able to gain access to clean water supply for consumption.

Title: Leasing rates and fees of the government surplus lands in special economic zone

The Cabinet acknowledged rates and fees for the lease of government surplus lands in special economic zones, as proposed by Ministry of Finance as follows:

In order for the investments in Special Economic Zones to be implemented according to the government’s policy to enhance competitiveness, mobilize the economy, and attract private investment in special economic zones, rates and fees for the lease of government surplus lands in special economic zones are set as follows:

Provinces 1. Songkhla

Lease rate/Rai/year(1st year)(adjusted by 15 % every 5 years)

40,000

Management fee/Rai/50 years(private sector and IEAT)

  • Previous proposal to Policy Committee for Special Economic Zones(Oct 8, 15)

600,000

  • New proposal 50% Reduction(Payment for 5 years to be paid in 6th-10th year)

300,000

Provinces 2. Tak

Lease rate/Rai/year(1st year)(adjusted by 15 % every 5 years)

36,000

Management fee/Rai/50 years(private sector and IEAT)

  • Previous proposal to Policy Committee for Special Economic Zones(Oct 8, 15)

500,000

  • New proposal 50% Reduction(Payment for 5 years to be paid in 6th-10th year)

250,000

Provinces 3. Sakaew

Lease rate/Rai/year(1st year)(adjusted by 15 % every 5 years)

32,000

Management fee/Rai/50 years(private sector and IEAT)

  • Previous proposal to Policy Committee for Special Economic Zones(Oct 8, 15)

450,000

  • New proposal 50% Reduction(Payment for 5 years to be paid in 6th-10th year)

225,000

Provinces 4. Trad

Lease rate/Rai/year(1st year)(adjusted by 15 % every 5 years)

24,000

Management fee/Rai/50 years(private sector and IEAT)

  • Previous proposal to Policy Committee for Special Economic Zones(Oct 8, 15)

320,000

  • New proposal 50% Reduction(Payment for 5 years to be paid in 6th-10th year)

160,000

Provinces 5. Mukdahan

Lease rate/Rai/year(1st year)(adjusted by 15 % every 5 years)

24,000

Management fee/Rai/50 years(private sector and IEAT)

  • Previous proposal to Policy Committee for Special Economic Zones(Oct 8, 15)

320,000

  • New proposal 50% Reduction(Payment for 5 years to be paid in 6th-10th year)

160,000

Provinces 6. Nongkai

Lease rate/Rai/year(1st year)(adjusted by 15 % every 5 years)

24,000

Management fee/Rai/50 years(private sector and IEAT)

  • Previous proposal to Policy Committee for Special Economic Zones(Oct 8, 15)

320,000

  • New proposal 50% Reduction(Payment for 5 years to be paid in 6th-10th year)

160,000

Remarks

  • Adjustment of lease rate for 15% every 5 years
  • Lease rate of Industrial Estate Authority of Thailand (IEAT) to be cut down 30% from private sector’s rate
  • Management fee is the minimum rate for each area specified by the government (IEAT and private sector use the same rate). In case of paying in installments, interests rate according to market rate will be applied.
  • Lease period is 50 years, and can be renewed for another 50 years
  • Interest is to be determined according to market rate

Title: Rescheduling of the auction for telecom licenses on 900-MHz spectrum

The Cabinet acknowledged National Telecommunications Commission’s resolution, in its emergency meeting on November 2, 2015, to reschedule the auction for telecom licenses on 900-MHz spectrum from November 12, 2015 back to December 15, 2015, as previously scheduled, as proposed by National Broadcasting and Telecommunication Commission (NBTC).

Title: Request for approval on draft Chair's Statement of the 12th ASEM Foreign Ministers' Meetings

The Cabinet agreed with the proposals made by Ministry of Foreign Affairs as follows:

1.Agreed on draft Chair's Statement of the 12th Asia-Europe Meeting (ASEM) Foreign Ministers’ Meeting. Ministry of Foreign Affairs is authorized to amend the draft document where necessary, if not affecting gist of the document or the benefit of Thailand, without further Cabinet’s consideration.

2.Minister of Foreign Affairs or his representative is assigned to endorse the draft Chair's Statement.

Gist of the matter

Draft Chair's Statement is to summarize the discussions and express political will of ASEM Foreign Ministers’ Meeting to promote cooperation between member states in politics, economics, as well as social and environmental aspects. The document is neither a treaty under international law nor a contract under Section 23 of the Constitution of the Kingdom of Thailand (Interim), B.E. 2557.

Title: Financing Agreement of the Enhanced Regional EU-ASEAN Dialogue Instrument (E-READI)

The Cabinet approved proposals made by Ministry of Foreign Affairs as follows:

1.Agreed on the draft Financing Agreement of the Enhanced Regional EU-ASEAN Dialogue Instrument (E-READI)

2.Authorized ASEAN Secretary General to endorse the draft Agreement.

3.Ministry of Foreign Affairs is authorized to amend the draft document where necessary, if not affecting gist of the document or the benefit of Thailand, without further Cabinet’s consideration.

Gist of Financing Agreement of the Enhanced Regional EU-ASEAN Dialogue Instrument (E-READI)

The objectives of the Agreement are to endorse ASEAN integration, eliminate poverty, and promote sustainable development and solidarity. The Agreement aims to 1) endorse implementation of ASEAN Community work plans based on exchange of experiences with the European Union gained through policy discussions with related agencies, 2). develop framework for policy-making process in the areas of mutual aspects, 3) enhance capacities under the prospect of the ASEAN three pillars: ASEAN Political-Security Community (such as maritime cooperation, building of peace and stability, human rights, etc.), ASEAN Economic Community (such as science and technology, information technology, energy, etc.), ASEAN Socio-Cultural Community (such as disaster management, environment, education, implementations according to UN’s Sustainable Development Goals, reduction of development gap, etc.), 4) reinforce ASEAN working system, especially connectivity and exchange of information at the regional, sub-regional (Mekong sub-region), and national levels.

--Cabinet Meeting (Prayut Chan-o-cha) November 03, 2015--

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