Bt5 Billion For Industrial Parks To Build Flood Barriers: Thailand

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Bt5 billion for industrial parks to build flood barriers

Nalin Viboonchart

Petchanet Pratruangkrai

The Nation

The seven industrial estates that have been hit by severe flooding are expected to need loans of at least Bt5 billion to build barriers to prevent future flooding.

Commerce Minister Kittiratt Na-Ranong said at a meeting yesterday with the Board of Investment, Federation of Thai Industries, Industrial Estate Authority of Thailand, Strategic Partners Association and the Industry Ministry, it had been decided businesses would be given soft loans to build flood barriers.

According to estimates, up to Bt5 billion would be needed for building permanent barriers with corrugated concrete sheet piles around the seven industrial estates, which cover a total area of 200 kilometres.

Nipit Arunvongse na Ayudhya, managing director of Navanakorn Public Co, the operator of the Nava Nakorn Industrial Estate, confirmed that at least Bt5 billion to Bt6 billion would be needed to build 6.5metrehigh flood barriers around the seven estates to protect them in the future. He added that since each kilometre of the wall would cost between Bt25 million and Bt30 million, Nava Nakorn would need around Bt600 million to protect its 20km area.

He said the company wanted the government to foot the cost, though he admitted that this would be unlikely.

"The severe flooding has been caused partly by bad management, so we think the government should help pay for the flood-prevention system," he said.

Khajohnsak Mahakunwan, adviser to the Rojana Industrial Park, agreed the government should cover the cost of the flood barriers, because the estates would need to invest up to Bt2 billion each and they may not be able to borrow the money from the banks.

He said Rojana Industrial Park, which covers 64km - the largest among industrial parks - would be left with a huge financial burden if the government did not help out. He said the company had no choice but to turn to the banking sector, but the problem was that banks did not consider a flood-barrier system as collateral.

Kobkarn Wattanavrangkul, chairperson of the Bangkadi Industrial Park, said the estate had yet to decide on the flood-protection system it wanted to invest in, and that it was seeking advice from flood-management experts with the Japan International Cooperation Agency (JICA), especially since most of the businesses were Japanese.

She added that the estate was ready to cover the costs itself because the government was only offering soft loans.

"Investing in a flood-prevention system is a must because we have to restore foreign investors' confidence. However, the government also has to invest in a long-term water-management system," she said.

Meanwhile, the commerce minister said funding should not be a problem for the industrial estate operators because the government would provide them with soft loans.

In related news, officials will start pumping water out from the affected industrial estates from November 15, and it would take at least 15 to 20 days to clean up. Factories should start operating by late December or early January.

Most factories in the Bang Chan Industrial Estate temporarily suspended their operation yesterday because water was seen seeping in. The estate has 93 factories and employs up to 13,800 people.

The industrial estates that have been inundated so far cover 891 factories, employ up to 460,000 workers and have a combined investment value worth Bt585.3 billion.

Kittiratt yesterday insisted the government would continue its policy to hike the daily minimum wage to Bt300, starting from April next year. The increased wage will help stimulate the country’s economy as a whole, the commerce minister said.

Once workers had better incomes, both private enterprise and the domestic economy would benefit following the floods that had dampened Thai economic growth, Kittiratt said.

-- The Nation 2011-11-03

[Morgo]

200 km of 6.5m flood walls around industrial estates. Will that mean more flood water for the rest of Bangkok?

Already an ugly city now we have to drive down canyons of cement walls, oh well more space for advertisement hordings.

[bushwacker]

<"Once workers had better incomes, both private enterprise and the domestic economy would benefit following the floods that had dampened Thai economic growth, Kittiratt said.">

Let us review this logic. The companies are going to produce less or maybe the same. The wage is going to increase by 40% or more. The costs or the wage increases will be added on to the cost of the goods produced. So, we have the same or less output costing more, which is good for the private companies and economy. NOT! :jap:

[scotto]

I think there will be alot of japanese business men at swampy soon with 1 way tickets never to return

unfortunately fort thai workers, maybe alot of other farangs too.

can see BOI new campaign now set up your factories here we have really good concrete security!!!

Also if they do build the walls and it does flood how do you gat manufactured goods out?

nothing goes out no money comes in?

I think thailand will lose some factories out of all this mess.

[wintermute]

Concrete walls have limited protection when the water seeps through improper drainage and into existing ground water channels. Japanese investors must have a triple digit profit margin for this to be worth while.

[TheWalkingMan]

I really thought the government would cover the costs of these walls.

[ginjag]

Concrete walls have limited protection when the water seeps through improper drainage and into existing ground water channels. Japanese investors must have a triple digit profit margin for this to be worth while.

Better Landfill the bloody lot, but get these factories to rebuild on better higher ground.

20 foot walls -200 kilometers ??? how much ??? and what a stupid eyesore this would be and they still need water proof entrances --and yes Drains......If some of these places are sectional--why not move ?? the mop up and repairs to everything is going to be massive.

Long term plan I would gradually land fill the lowest parts---or all the Bkk low areas-rather than try to build up walls and barriers-for future then the same again.

[GentlemanJim]

Time to buy more shares in Siam Cement Company !

[MaiChai]

<"Once workers had better incomes, both private enterprise and the domestic economy would benefit following the floods that had dampened Thai economic growth, Kittiratt said.">

Let us review this logic. The companies are going to produce less or maybe the same. The wage is going to increase by 40% or more. The costs or the wage increases will be added on to the cost of the goods produced. So, we have the same or less output costing more, which is good for the private companies and economy. NOT! :jap:

Thailand is no longer cheap. If I was running a manufacturing business, the floods would be one more reason to look at cheaper countries. Vietnam is considerably cheaper and the workforce can't be less educated?

[Seismic]

<"Once workers had better incomes, both private enterprise and the domestic economy would benefit following the floods that had dampened Thai economic growth, Kittiratt said.">

Let us review this logic. The companies are going to produce less or maybe the same. The wage is going to increase by 40% or more. The costs or the wage increases will be added on to the cost of the goods produced. So, we have the same or less output costing more, which is good for the private companies and economy. NOT! :jap:

Obviously they are going to produce less, Why??, well all that water will just inundate the surrounding residential areas where the workers live, thus they wont be able to get to the dry factories to work !!