PTT to join hands with Airports Department for commercial development of airports’ facilities



BANGKOK: -- The Department of Airports will grant a three-year concession to PTT Public Company to manage the buildings and parking lots of airports under its supervision, starting with the Udon Thani airport, for commercial purpose.

Mr Chula Sukmanop, the department’s director-general, said that an memorandum of understanding would be signed between the department and PTT Public Company on August 8 for the management of Udon Thani airport’s buildings and a parking lot initially for a period of three years as a trial basis.

He stressed that the management of the space and buildings at the airport was not intended primarily for commercialization but for the development of the facilities and setting up of a standard system to make revenues from the facilities such as collection of parking fees.

He said that PTT was expected to invest about 40 million baht for the development of the facilities at Udon Thani airport under the three-year contract which will be extended for another three years if the management of the operations of the facilities is satisfactory.

He disclosed that 10 airports are under the supervision of the department which have the potential to be commercially developed with the private sector such as PTT for mutual benefits.

PTT has hired JP Morgan and Pathara finance companies as financial advisor on non-oil business listing in the stock market next year with assets initially estimated at 80 billion baht.

Source: http://englishnews.thaipbs.or.th/ptt-join-hands-airports-department-commercial-development-airports-facilities/


-- Thai PBS 2016-07-19

PTT is a Thai state-owned company with some of its minority stock publically traded on the SET.

Its operation of the Udon Thani airport is not only a departure from PTT charter of registration but potentially a conflict of interest and lack of transparency with its majority stock owned by the government.

The Government should be soliciting bids from appropriate registered companies who would have no perceived conflict of interest with the government and can be ordered full transparency. But perhaps that isn't being done because of government budgetary considerations. The FY 2017 Budget is already in its second reading by the NLA.