Thailand unveils trillion-baht infrastructure boom

The Government of Thailand is poised to unveil a series of ambitious infrastructure projects, seeking to attract over 1.5 trillion baht in private investment. Prime Minister Paetongtarn Shinawatra is said to outline these initiatives in her policy statement to Parliament on September 12 to 13, focusing on economic stimulation and critical infrastructure enhancements.

One of the flagship projects is the “Pearl Necklace,” a major flood protection initiative designed to safeguard Bangkok and its surrounding regions from the escalating threat of flooding due to global sea level rise.

Plodprasop Suraswadi, former Deputy Prime Minister and chairman of Pheu Thai’s Environmental Policy Committee emphasised the urgency of the project, noting that rising sea levels from melting polar ice caps could inundate significant parts of Thailand, including Bangkok and neighbouring provinces.

The project proposes the construction of nine artificial islands along a 100-kilometre coastal stretch. These islands, each covering 50 square kilometres and situated 1 kilometre offshore, will feature protective seawalls with adjustable gates.

The first island will be located at Bang Khun Thian, with the remaining extending up to Chon Buri. Investment for this monumental project will be primarily driven by the private sector, with developers granted a 99-year concession. Plodprasop predicts the construction will span over 20 years, marking it as Thailand’s largest infrastructure investment to date.

Another key initiative is the Land Bridge project, spearheaded by Deputy Prime Minister and Minister of Transport Suriya Juangroongruangkit. This project involves developing deep seaports on both the Gulf of Thailand and the Andaman coasts to improve goods transportation and travel efficiency.

Planned for 2030

The Request for Proposal (RFP) for the project is anticipated to be completed by early 2026, with investor selection and a Royal Decree for land expropriation expected in the second quarter of that year. The first phase of construction is slated to begin in the third quarter, with operations projected to commence by the end of 2030.

The total investment for this project is estimated at 1 trillion baht. Investment opportunities will include a single contract covering management of both Chumphon and Ranong deep seaports, motorways, and railways, with options for joint ventures if companies prefer to focus on specific segments.

In addition, the government is advancing plans for a large-scale entertainment complex, inspired by Singapore’s model. The project will feature casinos occupying no more than 10% of the total area, with the remainder dedicated to concert halls, luxury hotels, and shopping malls.

The Finance Ministry estimates the investment requirement will range between 300 and 500 billion baht. At least three locations in Bangkok will each require investments of no less than 100 billion baht, while four tourist provinces outside the capital will see investments of approximately 50 billion baht per site, reported The Nation.

These projects mark a significant push towards enhancing Thailand’s infrastructure and economic landscape, with a strong emphasis on attracting substantial private sector investment.