Govt unveils Bt600 bn EEC projects

[webfact]

Govt unveils Bt600 bn EEC projects

By Wichit Chaitrong 
The Nation

 

Prime Minister Prayut Chan-o-cha’s will make high-profile trip to Europe later this month.

 

As PM prepares for Europe visit, ministers assure diplomats of continuity after poll

 

In what is seen as a economic road show before Prime Minister Prayut Chan-o-cha’s high-profile trip to Europe later this month, the government said yesterday it was accelerating six key investment projects worth Bt600 billion in the Eastern Economic Corridor (EEC).

 

Despite upcoming political changes after the next election, key ministers told diplomats from 56 countries that they expected the next cabinet to continue the projects. “There are about six to eight projects for which bidding would be held by the end of this year,” Kobsak Pootrakool, minister attached to the Prime Minister’s Office, told the diplomats during a briefing session at the Foreign Ministry.

 

Thai ministers and senior officials briefed the envoys about the progress of investment projects in the EEC after the legislation came into effect last month. 

 

The government is expected to submit the names of the bid winners for Cabinet approval in December or January next year, paving the way for construction work to begin, Kobsak said.

 

“I have talked with Pheu Thai and Democrat parties and they all agree to continue the EEC. Moreover, investors are also interested in it,” he said of the two major parties who are the frontrunners to form the next government.

 

Kobsak showed the envoys the timeline for six potential projects – high-speed railway, extension of two deep seaports, U-tapao airport, MRO center, and digital park – with an estimated total investment of Bt 608 billion.

 

 

They will be financed by public-private partnership (PPP). The EEC legislation would ensure the projects get off the ground within only eight months instead of 40 months that was previously stated, he added.

 

Senior officials from relevant agencies also shared details of eight infrastructure projects, most of which are at the feasibility study stage. Kanit Sangsuphan, secretary-general of the EEC Office, said that key projects could be accelerated as the government had done a lot of preparatory work in the past two years.

 

“We have succeeded in launching the first international bids for the high-speed rail,” he said, referring to completing the terms of reference (TOR) a few days ago.

 

It has cleared the path for other projects, he said. To draw more investors, the prime minister would lead a road show in the United Kingdom and France later this month, Industry Minister Utama Savanayana said. 

 

Prayut is scheduled to make a high-profile visit to the two countries from June 20-25 after the European Union softened its stance on Thailand’s military-backed government, with the resumption of political contacts at all levels. 

 

Economic tzar Somkid Jatusripitak would also accompany the PM on the trip to woo potential investors for the EEC and for the maintenance, repairs and overhaul hub at U-tapao.

 

Thai Airways International and Airbus are expected to ink an agreement when Prayut’s delegation is in France. 

 

Utama projected investments in the EEC over the next five years would reach $43 billion (Bt1.3 trillion). The EEC is not an isolated project but an integral part of Thailand 4.0, which is aimed at driving innovation, he said. 

 

The government has given generous incentives to investors who invest in the EEC zone, which covers Chon Buri, Rayong and Chachoengsao provinces. 

 

Duajai Asawachintachit, secretary-general of the Board of Investment (BOI), said investors have to invest in designated areas in order to get top-up incentives. They also have to invest in selected industries or so-called S-curve industries such as next-generation automotives, smart electronics, robotics and the digital economy. Investors could get a tax holiday of up to 13 years compared with the BOI’s basic package incentive for investment outside EEC, where investors get a tax holiday ranging between five and 10 years, she said. 

 

Eligible investors could rent land for up to 99 years, or enter into a 50-year contract renewable for another 49 years.

 

Foreign ownership will be as per Thai law and depend on the type of business. If the company needs to own land, it must have local partners who hold a majority stake – 51 per cent and up. In some cases, foreign ownership could be 75 per cent or 100 per cent, according to Kobsak. 

 

Investors from Japan, Europe, the United States, South Korea and China have shown greater interest in investment opportunities in the EEC. During the first quarter of this year, applications worth more than Bt200 billion were received for BOI incentives of which 80 per cent were for the EEC, added Duajai.

 

Source: http://www.nationmultimedia.com/detail/Economy/30347271

 

-- © Copyright The Nation 2018-06-08

[peperobi]

Please to explain what that project brings to the Thai peoples, nothing I suppose!

[Eric Loh]

7 hours ago, webfact said:

Govt unveils Bt600 bn EEC projects

Bt600 bn worth of real estate projects. What happen if they couldn’t attract the investors as political stability is investors key concern and the election is still an unknown factor. Big Bt600 bn of white elephants like the Hopewell project.

[Eligius]

All pie in the sky - all Thai waffle with no dependability, integrity or reliability to any of it.

[Srikcir]

7 hours ago, webfact said:

the government said yesterday it was accelerating six key investment projects worth Bt600 billion in the Eastern Economic Corridor (EEC).

That is to say its accelerating foreign investment with Japan and China companies currently as investors.

Investment in the EEC might be more attractive under a free trade agreement where there is less risk to investors than the current structure of the EEC. But that brings more constraints against the Thai government and less control by the Thai government, especially in any corruption schemes that might use junta absolute power and/or Thai courts for favorable judgements.

[simoh1490]

43 minutes ago, peperobi said:

Please to explain what that project brings to the Thai peoples, nothing I suppose!

Greater investment in Thailand including FDI; more jobs for Thai people; greater export capacity leading to improved GDP, what more do you want.

[Cadbury]

8 hours ago, webfact said:

"....six potential projects – high-speed railway, extension of two deep seaports, U-tapao airport, MRO center, and digital park – with an estimated total investment of Bt 608 billion".

And the additional power required for these projects is going to come from where? The sun and the wind.....I don't think so. The entire Thai power supply is presently marginal.

There are blackouts when the Laos power supply blows a fuse. Tesla batteries are the answer some would have you believe. I doubt investors would buy that.

Any investor putting up money for these projects without guaranteed power supply would be taking a huge gamble. The reason why the PM is pushing for a coal-fired power station is obvious

No guaranteed power supply = no investment. Protesters will just have to suck it up, which will make life interesting.

The PM is going shopping for investors in Europe. He will come home empty handed unless he can guarantee them a reliable power supply. The EEC Corridor will sink or swim on the basis of power.

The PM has already issued a veiled threat that he will take power from consumers if need be, reference:  

The Prime Minister also ordered the Ministry of Energy to cut power on a zone basis and prioritize based on impact.

 

 

 

Edited June 8, 2018 by Cadbury

[Eligius]

6 minutes ago, Cadbury said:

 

The PM has already issued a veiled threat that he will take power from consumers ...

 

That is all the junta leader knows to do - TAKE, TAKE, TAKE everything away - including political power - from the Thai people.

[Cadbury]

19 minutes ago, Srikcir said:

That is to say its accelerating foreign investment with Japan and China companies currently as investors.

Investment in the EEC might be more attractive under a free trade agreement where there is less risk to investors than the current structure of the EEC. But that brings more constraints against the Thai government and less control by the Thai government, especially in any corruption schemes that might use junta absolute power and/or Thai courts for favorable judgements.

I agree. Article 44 is the Sword of Damocles that hangs over the heads of any investor in Thailand. That combined with an element of irrationality by the one who holds power over it. As one investor operating under a free trade agreement knows only too well. 

[Eric Loh]

1 hour ago, simoh1490 said:

Greater investment in Thailand including FDI; more jobs for Thai people; greater export capacity leading to improved GDP, what more do you want.

Sounds good on paper but can the EEC attract the right FDI and create more jobs and better export? Right now it is only real estate development. I have yet to hear of any major corporation signing any MOU to invest in EEC. Have you any updated news on FDI?

[simoh1490]

1 minute ago, Eric Loh said:

Sounds good on paper but can the EEC attract the right FDI and create more jobs and better export? Right now it is only real estate development. I have yet to hear of any major corporation signing any MOU to invest in EEC. Have you any updated news on FDI?

All great ideas start life as a thought scribbled on a piece of paper..........I just scribbled, time to go to the pub. 

[Eric Loh]

2 minutes ago, simoh1490 said:

All great ideas start life as a thought scribbled on a piece of paper..........I just scribbled, time to go to the pub. 

Warming up for the world cup. Have a good evening. Cheers. 

[seajae]

looks more like one last run at getting a big bonus from "possible" winning bifdders before leaving office to me

[JAG]

2 hours ago, peperobi said:

Please to explain what that project brings to the Thai peoples, nothing I suppose!

Happiness?

 

If you have the right connections I suppose...

[JAG]

20 minutes ago, Eric Loh said:

Warming up for the world cup. Have a good evening. Cheers. 

Is it the world cup soon then?

?

[Srikcir]

1 hour ago, simoh1490 said:

more jobs for Thai people

A problem with the EEC and other new ventures is that Thailand hasn't, according to foreign investors, the 30,000-50,000 skilled workers to support the EEC not to mention the infrastructure necessary to support such a worker population.

Foreign workers will be required for several years. If the government doesn't now put into place the necessary journeyman programs and targeted higher education avenues, Thailand will not in the near term be able to provide a sustainable workforce.

[Eric Loh]

1 hour ago, JAG said:

Is it the world cup soon then?

?

Start 14 June. Think it’s Russia vs Saudi. 

[bkk6060]

3 hours ago, peperobi said:

Please to explain what that project brings to the Thai peoples, nothing I suppose!

Wrong!

[Oziex1]

3 hours ago, simoh1490 said:

Greater investment in Thailand including FDI; more jobs for Thai people; greater export capacity leading to improved GDP, what more do you want.

You can scrub the jobs there going to foreigners as stated a few days ago. At this point in time Thailand hasn't the necessary expertise for the tech jobs.