Free Consultant
Amendment of Cabinet’s resolution open the way for arbitration, facilitating public-private contracts
On 14th July 2015, the Cabinet approved the proposal made by the Thailand Arbitration Center (THAC) and the Ministry of Justice. The proposal regards the improvement of the Cabinet’s resolution of 28th July 2009, opening the way to use arbitration in contracts between government agencies and private entities.
In this regard, the former Cabinet’s resolution prohibits all types of contracts between government agencies and private entities in Thailand and abroad, that include an arbitration clause. Each contract as such shall be presented to the Cabinet for its approval on a case by case basis.
However, to promote the image of the country to gain investors’ confidence and to comply with international obligations, Thailand must comply with different conventions and agreements. The Cabinet, therefore, agreed on the proposal of the THAC and the Ministry of Justice to use only arbitration to solve disputes in contracts, like the one presented before. Consequently, the Private Investment in State Act 2013 and the Concession Agreements have to be implemented.
