Many investors may know TFF fund or many people may use to hear name of fund before. People who interest in joining to invest with this fund may have a lot of question. We search and combine question with answer before invest.
What is TFF fund?
TFF fund is a kind of method to mobilize for investing infrastructure project to develop country in future by income from exist infrastructure project to mobilize from investor through TFF assemble fund that sets up according to Kor Lor Tor and bring money to use for developing public utility and new public service.
Why we need to have TFF?
Nowadays Thailand has to develop a lot of infrastructure projects and public services for example road, hospital and school but limitation of budget and public debt it cannot invest to develop country in every sides in the same time. However, bringing infrastructure to mobilize through TFF is new money source that government can invest immediately no need to wait for budget allocation or limit loan to invest for developing country in other side such aspublic health and education.
What is benefit of TFF?
Government invests for infrastructure that has readiness quicker. People will use public service quicker. Moreover, TFF is option to invest for people who have saving money include making people take part to invest quality project of government and project that take to mobilize through TFF. There is controlling public service has more standard and clearer. It affected to be able to service people by better quality.
Minor investor can buy TFF or not?
Mobilization of TFF widely opens to all groups of investor by minor investor who is Thai has a chance to buy investment unit of TFF is main thoroughly. It is intention to give an opportunity to people for taking part to invest quality project of government that has stable return.
How many return from investment of TFF ? and there is guarantee return or not?
Return rate to invest for the first time has to proceed through survey process requirement to buy investment unit of investor. So that return rate depends on requirement and risk evaluation of investor. During the presentation to sell investment unit for investment of TFF in this time is investment in old project (Brownfield) of Expressway and Rapid Transit Authority which has stable income. It is not necessary to guarantee return.
TFF will be sold in stock exchange or not?
TFF unit investment will register in stock exchange for making liquidity to trade for changing hands and advantaging to investor for trading in stock exchange by registering in stock exchange. It is clear to manage under control of Kor Lor Tor as well.
Expressway fee will more expensive or not?
According to resolution of cabinet on 30 May 2017 they gave principle to make agreement RTA (Revenue Transfer Agreement) that not be condition to increase toll. Therefore, TFF mobilization does not make expressway fee increases.
What state enterprises will get from mobilization through TFF?
Government will get money from mobilization through TFF for building new project that has readiness immediately by does not need to use budget, loan or wait for collecting profit in the future. Fast investment leads to have property for making income to government faster. It includes not be burden to finance such as Expressway and Rapid Transit Authority will get money from TFF to build Rama 3 - Daokanong – outside ring special way project and step 3 expressway northern trail section N2 and E-W corridor west side and when project service can make more income to Expressway and Rapid Transit Authority. In addition, new line of expressway will help to relieve traffic problem in Bangkok and perimeter. It includes helping for reducing using of gasoline. People and country will get benefit as well.
Privilege of expressway officer will get lower or not from bringing infrastructure project to mobilize through TFF.
Resolution of cabinet on 30 May 2017 approved to let Ministry of Finance considers for improving to calculate profit to allocate bonus for expressway officer. To let expressway officer is confident to take infrastructure project to mobilize through TFF. It will not affect to bonus of expressway officer absolutely.
Mobilization through TFF is taking property of government to sell investor or not?
Mobilization through TFF is bringing property of government to sell investor but it is mobilization from confidence of income from project in the future for getting money from investor to use for develop project immediately. Investor will get return according to specification period of time of agreement.
Capital from mobilization through TFF is moreexpensive than borrow money or not?
Capital to mobilize through TFF will depend on risk evaluation of investor. Government has no any obligation during borrowing money will have government to receive all risks. It makes loan capital may lower than mobilization through TFF but using loan will make level of public debt of country gets higher. It might be one of factor that makes level of reliability of country gets lower. Moreover, government has ability to invest in other necessary sides for example education and public health.
To summarize we can compare like parents (government) have 3 children. First child is strong and can make money. Second and third children are student and have no income but they need to develop education and livelihood. So that, if parents wants to borrow money limitedly they have to borrow money for first child to invest by using parents credit to borrow money. Parents can borrow lower money for second and third children. Mobilization through TFF is mobilization source for first child. They can mobilize to use for investment in own business immediately (no need to wait for parents to borrow money). It will help parents to have money to develop education and livelihood of second and third children.
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