The Public Debt Management Office (PDMO) disclosed the details of the funding sources for the THB 2.4 trn infrastructure investment plan during 2015-2022. The breakdown is as follows:

• 45% (1.1 trn) funded by state enterprises loans
• 20% Government fiscal budget
• 20% PPP schemes
• 10% state enterprises’ CF
• 5% infrastructure funds
• All this with a debt covenant that public debt to GDP should not exceed 50% during the investment period

Now what we see in Thailand is how forward looking investors are because they are pricing in these projects even though the majority are at least 3 years away

Source: Thanachart Research

A quick reminder the breakdown for the budget is

• 46% in mass transit and transport systems in the Bangkok Metropolitan Region
• 28% in the road network across the country
• 16% on double-track railway projects
• 6% on air transport
• 4% on water transport