Public-Private Partnership in the Provision of Public Services: A Case Study of the Development of Light Rail Transit in Khon Kaen

Abstract

The objectives of this study are to examine and analyze 1) the history of the concept of public-private partnership (PPP); 2) experiences of local government organizations in Thailand and abroad in applying the concept of PPP in developing rail transportation in urban areas; and 3) problems, obstacles, and limitations of legal measures affecting the use of the aforementioned concepts in developing light rail transit in Khon Kaen. Results were that the concept of PPP can solve budgetary shortfalls for local government organization infrastructure investment, decreasing budget dependency upon the central government, and increasing efficiency in providing public services. However, applying the concept of PPP to light rail transit in Khon Kaen proved difficult due to problems, obstacles, and limitations causing project delays, including approval for establishing a municipal limited company, supervising a municipal limited company, implementing the law on PPP, and land use planning. Therefore the concept of PPP should be supplemented by appropriate investment promotion measures, while relevant environmental laws facilitate joint ventures between local government organizations and the private sector.