Japan Agency (JICA) Withdraws Grant For Bt200M Pilot Flood Protection Project: Thailand

[webfact]

JICA Withdraws Grant for Bt200m Pilot Flood Protection Project

The Japan International Cooperation Agency withdrew cash assistance worth 200 million baht for the construction of a pilot flood protection system at a selected industrial estate.

Meanwhile, Korea's electronics giant Samsung has decided to slow its production, awaiting clarity on the government's long-term flood protection plan.

Industry Minister Wannarat Charnnukul said the charge d'affaires of Japan to Thailand has reported that the Japan International Cooperation Agency or JICA will withdraw a 200-million baht grant for the construction of an exemplary flood protection system at an industrial estate.

Wannarat added that JICA will continue to assist with the Industry Ministry on other projects.

He said the cancellation will not create any problems, as each industrial estate has their own plans to construct a permanent flood wall.

The minister said the government has asked JICA to issue an official statement on the matter.

Meanwhile, President of Samsung Electro-Mechanics Thailand, Chang Nam, said the company has slowed production in Thailand as it wants to see the government's flood protection plan first, although its factory is located in Wellgrow Industrial Estate, which was not affected by the flooding.

Nam would not comment on whether the issue will have an impact on its future investment planning in Thailand, as the decision will be made by Samsung's headquarters in Korea.

The Samsung executive wants the government to implement stricter and more effective flood protection measures to maintain its investment base and good relations with international corporations.

He said his company has increased its investment in Wellgrow Industrial Estate, where 30 percent of its money is invested in the construction of facilities.

Samsung Electro-Mechanics has production bases in Wellgrow and Sriracha industrial estates, which supply parts and components for electrical appliances for Korea, Hong Kong, the United States, and European countries.

-- Tan Network 2011-12-08

[ramrod711]

*(Reply to deleted quote edited out)*

He said his company has increased its investment in Wellgrow Industrial Estate, where 30 percent of its money is invested in the construction of facilities

an additional 30% is paid to various thai politicians at every level

Edited December 8, 2011 by Scott
deleted quote edited out

[Foggy Bottom]

"Meanwhile, President of Samsung Electro-Mechanics Thailand, Chang Nam, said ..."

Seriously?

Mr Chang Nam? Hippopotamous in Thai? Named in a story about post-flood reconstruction?

Is this a reworked story from NottheNation?

[Scott]

An number of posts with a quote reported to have come from the Bangkok post have been deleted, as well as responses to them.

[rakman]

While protecting the industrial estate with a flood wall would protect the equipment, having transportation links available would allow continued business.

Having to stop production for more than a couple of days is not particularly business friendly.

The flood solution plan needs additional work.

[Yme]

>>The minister said the government has asked JICA to issue an official statement on the matter.<<

Something like this perhaps?

Media Announcement: JICA have withdrawn a Bt200 million grant to build an exemplary flood protection system around an industrial estate in Thailand because it doesn't think the Thai government has a clue what it is doing and doesn't believe more than 50% of the money will make it through slimy government and consultant fingers to the actual project.

The announcement by Samsung is also interesting and could foreshadow concern amongst the FDI community that with the global economy in the state it is in the manufacturing facilities in Thailand exceed the expected demand for discretionary purchases in the year ahead.

Thailand seems to think it's FDI will return to at least pre-flood levels and it's just a simple matter of drying out the factories, the investors submitting their insurance claim and away it goes.

In reality the floods have occurred at an interesting time in global market contractions and I won't be surprised if many of the flood affected manufacturers return at greatly reduced staffing levels, while some may decide the factories in other locations that have picked up the shortages due to Thailand closures can adequately handle the current demand and not reopen at all.

[webfact]

Deputy PM Unaware of Japan Canceling Flood Aid

The Deputy Prime Minister in charge of economic affairs says he is not aware of the Japan International Cooperation Agency's cancellation of a 200-million-baht cash aid.

Meanwhile, he expects the revision of the flood management plan will be completed within two weeks.

Deputy Prime Minister and Commerce Minister Kittirat Na Ranong said after a meeting with Thai automotive manufacturers, he has clarified with the manufacturers about the government's approach in solving long-term flood problems to ensure investor confidence.

He noted that the government is currently revising a master plan for long-term water resources management with help from Japanese organizations.

Kittirat expects the plan will be completed within two weeks and the government will have talked it through with business people and investors from all economic sectors by the New Year holiday.

Regarding auto parts supply problems, the Commerce Minister said the government will implement measures to facilitate the import of parts for the manufacture and assembly of vehicles, as domestic production will likely miss its original target.

He predicts there will be demand for two million cars manufactured in Thailand.

Kittirat stressed that assembled vehicles imported under the special measure are not eligible for the first-car tax rebate scheme.

Responding to reports that the Japan International Cooperation Agency, or JICA, withdrew a 200-million-baht grant for the construction of a pilot flood protection system, the minister said he has never heard that JICA made such offer.

He added that the agency has only agreed to offer consults and other kinds of help.

-- Tan Network 2011-12-09