The details of the auction’s terms of reference (TOR) would need to be adjusted to separate the concession between Suvarnabhumi Airport and other regional airports, he said, adding he believed the auction process would go ahead irrespective of whether it were organised by the AOT or through the PPP.

Somkid stated that the AOT has the authority to organise the sale of its duty-free auction bids as the authorisation was approved by the AOT’s board of directors.

Furthermore, the details of the auction’s TOR were refined to separate the duty-free agreements. There will be one agreement for Suvarnabhumi Airport and another agreement for Phuket, Chiang Mai and Hat Yai airports. This is an improvement from the original TOR, which included all four airports in one agreement.

 Regardless, the PPP committee, chaired by Prime Minister Prayut Chan-o-cha, established a subcommittee, which would analyse whether the auction has to be a part of the PPP Act, which will allow the private sector to jointly invest in state-run projects.

“This is part of the working process and can be done in parallel with the selling of auction envelopes without disrupting the auction process,” Somkid claimed.

The subcommittee’s analysis will be completed in the next two weeks, according to the deputy PM.

“If the subcommittee’s analysis shows that the auction process needs to be a part of the PPP Act, then the auction will proceed in accordance with PPP regulations. If not, the AOT can continue with the auction process,” he said.

The AOT’s board of directors on March 28 agreed to amend the TOR. They added that the selection of duty-free goods in the auction must be emphasised on quality brand-name goods.

Furthermore, they stated that the overall benefits of the two agreements – one for Suvarnabhumi Airport and another agreement for Phuket, Chiang Mai and Hat Yai airports – must not grant any less than the current benefits received by the AOT.

The selection of Suvarnabhumi Airport’s commercial project management will be done through a “Master Concession” (managed by one party).