Court Injunction Halts 76 New Industrial Projects In Rayong

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POLLUTION AT MAP TA PHUT

Injunction halts projects

By THE NATION

Published on September 30, 2009

Thailand's industrial-investment scene yesterday suffered another blow as the Central Administrative Court issued an injunction against proceeding with 76 projects slated for Map Ta Phut and nearby areas in Rayong with a combined investment of about Bt400 billion.

The court's ruling in favour of |villagers in and outside the Map Ta Phut Industrial Estate will affect |76 projects that have passed an |environmental-impact assessment (EIA).

These projects are pending construction licences under the Constitution's Article 67, which requires a health-impact assessment (HIA), public consent and approval from the yet-to-be established in-dependent environment body.

The court ruled that the minutes of a meeting of government agencies showed pollution problems from existing facilities in the area had intensified. That was enough to justify the injunction, as more industrial activity would increase the damage, it said.

The injunction will remain in place until there is a judgement in the environmental case against a number of government agencies.

The 76 projects to be located in Map Ta Phut, Ban Chang and other areas belong to a number of major companies, including the PTT |Group and the Siam Cement Group (SCG).

The Abhisit Vejjajiva government had earlier resolved that projects in the area could proceed if they had passed the EIA stage.

On September 15, SCG-Dow Group - a joint venture between |Dow Chemical, SCG and Solvay Peroxythai - announced it had conducted a foundation-stone laying ceremony for its HPPO (hydrogen peroxide to propylene oxide)-related investments at the Asia Industrial Estate site near Map Ta Phut.

MUDDLED RULES

Unclear regulations have become one of the major concerns for foreign investors, as many industrial firms are eyeing investment in Thailand, including in steel-smelting plants.

Deputy Prime Minister Korbsak Sabhavasu recently said Thailand should not be home to polluting heavy industries.

In a paper by the Federation of Thai Industries' communications and technical task forces - and released to the press yesterday - for a win-win solution the government is urged to allow responsible companies or projects that comply with rules to proceed, and to punish non-compliant companies. Meanwhile, industrial projects must continue to reduce pollution as in the established plan and escalate community-relations efforts.

Both the government and the industry concerned should work closely with the local community on development activities to improve people's quality of life and promote the "Eco Town" principle, the paper said.

It also said the government |should allow the 76 projects to |continue with their construction |and operation, as they have fulfilled the EIA and permit requirements, including HIAs and public participation.

Villagers in Rayong have, however, strongly opposed further industrial expansion in the area.

Yesterday's injunction was in response to a petition from the Anti-Global Warming Association and 43 villagers from Map Ta Phut.

They filed the petition against the National Environment Board and the secretary-general of the Natural Resources and Environment Policy and Planning Office, as well as the ministers for natural resources and environment, industry, energy, transport and public health and the Industrial Estate Authority of Thailand.

They were alleged to have violated Article 67 of the Constitution in approving the 76 projects to proceed as planned, even though the charter had gone into effect on August 24, 2007.

-- The Nation 2009/09/30

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Govt to appeal court's injuction on industrial projects

By The Nation

Prime Minister Abhisit Vejjajiva is prepared to appeal the Central Administrative Court's injunction on 76 industrial projects, according to deputy government spokesman Watchara Kannikar.

Watchara said the court's injunction was a hot topic at the meeting of economic ministers.

Federation of Thai Industries Chairman Santi Vilassakdanont also expected the Industrial Estate Authority of Thailand, which operates the Map Ta Phut Industrial Estate, will also appeal the injunction.

The 76 projects, slated for Map Ta Phut and nearby areas in Rayong, are now barred from proceeding with their operating plans.

PTT Group is consulting with government agencies on ways to reduce environmental

impacts and considering if it should appeal the court's decision.

Among 76 industrial projects affected by the court's ruling are 25 belonging to the group including the 6th gas separation unit, the enhancement project aimed to reduce energy, water and chemical consumption, and the refining enhancement project to meet the Euro IV standard. In the statement, PTT noted that if the projects are suspended, it could hurt clients, business partners, financial institutions and supply chain industries, which could affect 100,000 jobs and local workers.

PTT Chief Finance Officer Thevin Vongvanich insisted that the group has upheld social and environmental concerns throughout its history. It has improved the operating system as well as technology. Under the pollution reduction plan during 2007-2011, PTT Group has so far reduced the emission of nitrogen oxide (NOx) by 43 per cent and sulfer dioxide by 45 per cent. Meanwhile, the group has reduced waste water by 700,000 cubic metres and industrial wastes by 378 tonnes per annum.

"PTT Group is determined to promote the living condition of Rayong through internationally-accepted stringent measures, with honour in environmental concerns and readiness to comply with the pollution measures to be imposed by the local

government," PTT said in the statement.

The Central Administrative Court yesterday put injunction on the 76 projects until an environment lawsuit against government agencies is through.

-- The Nation 2009/09/30

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Thai Ruling Highlights Pollution Concerns

By JAMES HOOKWAY

BANGKOK -- Thai government officials said they would appeal a court ruling to suspend dozens of projects at the country's largest industrial park because of pollution concerns, saying the order could alarm investors as Thailand shows signs of emerging from the global economic slump.

Thailand's Administrative Court late Tuesday ordered 76 industrial projects at the Map Ta Phut complex on Thailand's eastern seaboard to temporarily shut down while government investigators examine whether they had disregarded environmental health regulations. The projects include some run by the country's largest corporations, national oil and gas company PTT PCL and industrial conglomerate Siam Cement PCL.

Continued at The Wall Street Journal

http://online.wsj.com/article/SB125430704071852163.html

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New York Times also has an article published Dec. 19, "In Industrial Thailand, Health and Business Concerns Collide."

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The constitutional basis for the law suit can be read at Constitution of Thailand 2007 under Part 12 Community Rights.