What is an Infrastructure Fund?
An Infrastructure fund is established to raise capital from both individual investors and institutional investors in order to finance infrastructure projects across Thailand. Investment in infrastructure projects is not only essential for the wellbeing of Thai people but it also plays a crucial role in developing the nation’s economy. Naturally, infrastructure projects are huge in size and require a tremendous amount of capital in which the government is likely going to borrow thereby increasing the level of public debt. Thus the purpose of the infrastructure fund is to alleviate that burden. Moreover, the fund will also become an alternative source of financing for private sector involved in the national infrastructure projects.
Infrastructure fund is allowed to invest in 12 types of infrastructure projects as follows:
- Railway or Pipeline Transportation
- Electrical Grid
- Road, Expressway, or Concession Way
- Airport or Airfield
- Deep Sea Port
- Telecommunications or Telecommunication-Related Infrastructure and Communications
- Alternative Energy
- Water Management/ Irrigation
- Natural-disaster prevention system including the alert and management systems to mitigate the intensity of such natural disaster
- Waste Management
- The infrastructure projects that mix with multi-infrastructures mentioned in 1. to 11., with the complete characteristics as follows:
- Connecting, supporting, or having advantage together or towards the individual communities or vicinities
- Generating or prone to generate the revenues no less than 80% of the total revenues from the total projects mixed