Guidelines for the Management and Administration of State Property

The management of state property aims to develop it commercially, focusing on utilizing the limited resources of state property efficiently to maximize the value of the land and generate the greatest benefit for the state. This approach emphasizes effectiveness in economic, social, and environmental aspects simultaneously. The guidelines are as follows:

1. State property used by government agencies for official purposes:

   • If a property is located in a commercial area unsuitable for government use, the Treasury Department may develop the property and open it for competitive bidding to private investors.

   • The Treasury Department will set conditions requiring the winning bidder to purchase and transfer the land to the government and construct buildings or facilities according to the agency’s requirements. Additionally, the bidder must provide a certain fee to the government as compensation for the use of the property.

   • In return, the government will grant a long-term lease of the constructed buildings on the state property to the investor.

2. State property leased by the Treasury Department for residential or agricultural purposes:

   • When the location becomes commercially valuable, the property may be reconsidered for development. Priority may be given to the existing lessee, with conditions similar to those in point 1, or adjusted according to the suitability and specific circumstances of each plot.

3. Economic utilization of state property:

   • In addition to leasing (with or without competitive bidding), the Treasury Department may utilize state property through other reciprocal agreements beyond leasing.

   • Such arrangements must receive approval from the Minister of Finance in accordance with Section 23 of the Ministerial Regulation on the principles and methods of governing, maintaining, using, and economically utilizing state property B.E. 2545 (2002), issued under the State Property Act B.E. 2518 (1975).

Economic Use of State Property

The economic use of state property involves generating benefits through leasing or other reciprocal agreements beyond simple leasing. Some key examples include:

1. Leasing of state-owned buildings:
   Examples include hotels, markets, commercial buildings, cinemas, shopping centers, and department stores.

2. Leasing to state enterprises for income-generating purposes:
   State enterprises may lease state property for their operations to promote their activities. When state enterprises generate revenue, they are required to remit income to the state according to legal regulations. Rental fees collected from state enterprises also constitute state revenue. Several state enterprises lease state property, including:

   • The Communications Authority of Thailand

   • The Electricity Generating Authority of Thailand

   • The Provincial Electricity Authority

   • The Telephone Organization of Thailand

   • The Fish Marketing Organization

3. Leasing to local administrative organizations:
   Local administrative organizations may lease state property to generate benefits according to their official duties. Fifty percent (50%) of the rental income is retained by the local organization, without remittance to the state treasury, and is considered local revenue. This type of leasing promotes the state policy of income redistribution to local communities, encouraging local development and improving the economic well-being of residents.

Examples of economic use of state property:

1. Hiring private management for convention centers:
   The Treasury Department allowed N.C.C. Management & Development Co., Ltd. to manage the Queen Sirikit National Convention Center. The project included construction of a hotel with 400 rooms, parking for 3,000 cars, and 28,000 square meters of commercial space, with a total investment of not less than 2,732 million baht.

2. Development project at Mo Chit Bus Terminal:
   The Mo Chit area covers 63-2-65 rai. Part of the land (40 rai at the back) has been leased to Bangkok Metropolitan Administration for parking and a BTS train depot. The remaining 23+ rai at the front, combined with some of the rear area, were auctioned to private investors. Bangkok Terminal Co., Ltd. won the bid to develop this state property as a modern national transportation and mass transit hub to address traffic problems, with a project value of approximately 18,000 million baht.

3. Development of state property plot No. P.K. 242:
   The project involves a private company, Chaithalay Hotel Co., Ltd., constructing a hotel on state property plot No. P.K. 242 in Nong Kae Subdistrict, Hua Hin District, Prachuap Khiri Khan Province. The hotel, named Hyatt Regency Hua Hin, comprises 205 rooms, with a project value of approximately 1,420,541,177 baht.