'green' Light For Condos?: Bangkok

[webfact]

'Green' light for condos?

Chularat Saengpassa,

Pongphon Sarnsamak

The Nation

Click HERE for large image

Plan to simplify environmental approval for condo projects pleases developers

BANGKOK: -- To the dismay of environmentalists, condominium developers and buyers can anticipate greater ease of doing business, thanks to a planned amendment to the Environmental Impact Assessment (EIA) process.

Developers have complained that the EIA approval process under current rules and regulations is obscure, giving too much power to a committee whose decisions are seen as subjective. Under rules backed by environmentalists and groups of residents whose neighbourhoods have been endangered by mushrooming growth of condo blocks, no condo unit can be transferred to the buyer if the project does not pass an EIA.

But if an amendment to the rules proposed by Santi Boonprakub, secretary-general of the Office of Natural Resources and Environmental Policy and Planning (ONEP), is adopted, all these complaints could simply disappear. Developers will no longer be subjected to the judgements of the EIA committee as long as they meet a set of clearly specified and standardised criteria. Local governments, like the Bangkok Metropolitan Administration (BMA), whose jurisdiction covers Bangkok and its nearby provinces, will ensure developers meet the criteria, before and after construction.

"The EIA committee is now overwhelmed with applications, leaving it without the resources it needs [to consider] projects that pose a greater environmental threat. The amendment should relieve our burden and address developers' complaints," Santi said.

Between 2006 and October this year, his agency approved EIAs for 323 condominium projects. The panel has to review about 30-50 EIA reports a year, in line with increasing demand for high-rise units. According to the Real Estate Information Centre, from 2008 to September 2012, 230,427 condo units were registered in Greater Bangkok. Condos account for about half of all residential units hitting the market.

Santi wants to amend the 1992 Environmental Quality Protection and Promotion Act, which currently requires developers to conduct an EIA report and seek approval from a panel of environmental experts before construction begins. Once the report is approved by the expert panel, developers are required to submit the approved report to local authorities to get a licence.

A team has been appointed to study if the requirement to obtain the panel's approval can be scrapped. Instead, developers would face a standard code of practice. Guided by the EIA, the code would require compliance in key areas like wastewater treatment, proportion of green areas and parking lots, and total space and setback distance. Local governments would monitor compliance, rather than the ONEP.

Santi said this would help developers complete condo projects more quickly. "If they are sufficiently confident they are able to comply with the measures, they will just attach the list of measures they plan to adopt with applications for construction licences. The local authorities will then evaluate whether to grant permission to developers."

Developers welcomed the move. Thai Condominium Association chief Thamrong Panyasakulwong said that on paper, the clearly defined code of practice looks better than the current system and should give greater clarity in terms of compliance.

The BMA, which received 60 applications for condominium construction licences from January through September, says it is ready to accommodate the regulatory change.

Pinit Lertudomtana, director of the BMA's Building Control Division, said he welcomed Santi's idea to transfer the approval process to local authorities. He understood that the amendment process would take time, and said the BMA would use the time to add staff to cope with the higher volume of work.

The BMA's task is currently limited to issuing construction licences to developers who have EIA approval, as well as monitoring compliance. "Of course, we must do this job if the ONEP wants us to do it, because it is a responsibility we cannot avoid," Pinit said.

To address the workload problem, Pinit suggested that local authorities subcontract building inspections to private companies. Then, they could allocate human resources to reviewing applications and handing out construction licences.

For environmentalists like Stop Global Warming Association chairperson Srisuwan Janya, however, the ONEP plan sets alarm bells ringing. He opposes the proposal, saying the ONEP should be a neutral agency that checks and monitors the environmental impacts caused by condominium construction and development.

"The ONEP should increase its human resources to do this job instead of transferring the responsibility to local authorities," he said.

Even with the ONEP's screening, people living near construction sites suffer negative environmental impacts. Srisuwan's group has represented two groups of residents - in Bangkok's Lak Si district and Sukhumvit Soi 68 - in lawsuits against two condo projects. Lawsuits filed at the Central Administrative Court state that local residents were negatively affected by the height of planned buildings. While the first group said the Lak Si project, which is under construction, blocked sunlight and killed much of their view. The second said the already completed Sukhumvit building, with hundreds of tenants, caused traffic woes.

The problems existed even though the condo blocks got EIA approved, Srisuwan said.

Earlier this year the ONEP played a role in delaying the construction of a condo project on the Chao Phraya that blocked the view of long-time residents in a nearby condo.

The Central Administrative Court judge in charge of the Sukhumvit case commented recently in favour of local residents, suggesting the project's EIA was illegitimate as it was conducted without consulting nearby residents. On Thursday, the court will give a verdict on the project's EIA process, which could invalidate its construction licence.

With or without ONEP's participation, such conflicts are certain to become more frequent in line with the rising demand for high-rises. As land prices soar and oil prices creep up, the popularity of condo blocks will only rise.

-- The Nation 2012-11-12

[webfact]

ENVIRONMENTAL PROTECTION

Developers welcome proposed streamlining

SOMLUCK SRIMALEE

THE NATION

BANGKOK: -- Condominium developers have welcomed a proposed amendment in environmental regulations, expecting that the clearer process would slash land costs by 5-7 per cent a year.

They reacted positively to the proposal by the Office of Natural Resources and Environmental Policy and Planning (ONEP) to revise the application process for environmental impact assessment. Rather than having to apply for EIA approval from an expert panel, developers would be required instead to comply with a full environmental checklist under the supervision of local authorities, which are in charge of issuing construction licences.

Thai Condominium Association president Thamrong Panyasakul-wong said such a move would bring about a new standard practice for condo developers.

"Currently when we decide to buy a plot of undeveloped land for a new condominium project, we have to bear the risk if the project cannot win EIA approval. The approval process relies heavily on the judgement of members of the expert panel," he said.

Without a standardised approval process, one of two projects in adjacent areas could win EIA approval while the other does not. This has been a major risk for developers, he said.

Property firms are ready to do anything to protect the environment, but need a single set of standards, he noted.

"Standards aside, the checklist will also help us save costs. With the checklist, we can go ahead with the projects. Under the current rules, we need to wait for six to eight months for the expert panel to grant EIA approval," he said.

Large developers have to acquire land in advance, bearing the cost of interest while the land sits undeveloped.

Some big companies can tap funds from the bond market, offering a coupon rate of 5 per cent, but smaller firms have to depend solely on bank loans. The minimum loan rate is now 7 per cent per annum.

Kree Dejchai, SC Asset Corporation's chief operating officer, said standardised EIA rules would help property firms tremendously. Now, SC Asset, for which condominiums account for a large chunk of the business, has to wait 10 to 12 months to win EIA approval for its projects.

He noted that this added to financing costs, while developers are subject to many rules.

Condominium development is now governed by four laws.

The first is the Environmental Quality Protection and Promotion Act 1992, which stipulates the EIA approval process.

Second is the Urban Planning Act, which is exercised by the Bangkok Metropolitan Administration (BMA) for development in Greater Bangkok and nationwide by the Public Works Department. Parts of the law cover environmental aspects, such as the one specifying that the construction process must not affect neighbouring locations.

Third is the Building Control Act, also exercised by the BMA and the Public Works Department. Included in the law is environmental management.

Last is the Condominium Act, which is implemented by the Interior Ministry's Lands Department.

"The last three laws are enough to control condominium development, but we are also willing to comply with the environmental checklist," Kree said.

Opas Sripayak, managing director of LPN Development, the biggest player in the condominium market, added that the change would help save costs for developers aside from operational smoothness. His company also has to wait eight to 12 months to win EIA approval for its projects. The abolition of the application process and the adoption of the checklist would benefit both developers and home-buyers.

He suggested that once the process is cut short, the financial burden would be cut and consequently unit prices could be cut to benefit home buyers.

"We welcome any proposals to save the environment, but the regulatory process should be clear and facilitating."

He also suggested that the ONEP may come up with a number of checklist sets, to respond to different physical conditions of each area. While development in the central business district could just follow the checklist, some environmentally sensitive locations may need to be controlled by a combination of checklists as well as an expert panel's opinions.

"For some locations where environmental threats are low, just the checklist should be enough, and this would benefit both developers and home-buyers," he said.

-- The Nation 2012-11-12

[noitom]

Free for all time in Thailand development. Wild West is back again.

[Soi Sauce]

Bangkok ceases to be a city a while back. It is now a cross between a construction site and a motorway.

This will only make things worse.

Edited November 11, 2012 by Soi Sauce

[Thai at Heart]

Bangkok. The only place in the world reducing environmental controls

[asiawatcher]

Obviously Khun Santi has the intelligence of a gnat. Bangkok city environment is a total disaster already, combining ignorance of building codes, and especially town planning. There is a glut of unsold property already both in Condo's and Commercial premises. Perhaps the most important aspect is the cleanliness of the sir of Bangkok. The sole contributing factor being vehicles within the city. Roads are choked already beyond any ability to cope. Adding high density dwellings to this is simple stupidity. Bangkok has already decentralised and areas capable of coping with expansion are easily available especially along the new proposed transport routes of the MRT and BTS. Unless there is reclamation of existing land within the city and widening of roads and footpaths, removal of street vendors choking footpaths, adding more buildings will bring a chaos that will be unprecedented. Put a stop to developers of these properties for a few years, demolish dilapidated buildings, add a code of only 40% of the land area able to be built on the rest being 'grounds' for trees and parks and try to combat this senseless choking of the city and the environment.

[madmitch]

Is the hand gesture in the picture aimed at the environmentalists?

[Hunter88]

Pattaya and Jomthien alone, have over 5000 unsold condominiums. We sure need more of that.

[johnlandy]

Bangkok. The only place in the world reducing environmental controls

It's called 'TiT'

[EarthAlien]

I love the choice of pic used,... two fingers upwards,... used to mean the same as the currently popular middle finger gesture!

[Halion]

This is as usual ass backwards. The control should lie with the EIA and pre set standards set and reviewed by those with knowledge and abilities and not Bangkok Municipality.

It is the Government responsibility to ensure that the pertinent agencies under it's control have sufficeint resources to deal with the relevant laws ,proceedures and not just simply pass the buck to a group with absolutely no interest or ability in this feild but a strong interest in capital gain. If it is indeed a real problem simply beef up the EIA so that they can handle the work flow.

Next time a minister has a cardiac problem simply send him to a proctoligist.

[tomross46]

This will make members of the political parties in control very happy. SC Assets, which is owned by Big Brother and the Family will profit.

[belg]

time to make a new capital for thailand, same as people talked when it was about to be flooded?

this time they could make one that copies the good old USA ... big lanes, structured building, for easy access?

maybe first build a subway infrastructure and build along that route ....

[khunken]

This is a recipe for more corruption. Giving approval power to local authorities means under-the-table pay-offs are easier & far more likely. It's already bad enough in Bangkok with some narrow sois gridlocked because high-rise condos (& hotels) have allowed far more car users than the carrying capability of the sois.

The EIA & approval process needs to be tightened up not relaxed.

[Arkady]

Bad news for the environment but I am holding on to my Thai property developer stocks.

[IsaanUSA]

Wow, this part really surprised me. I wouldn't want to be a condo developer stuck with land that can't be developed.

"Currently when we decide to buy a plot of undeveloped land for a new condominium project, we have to bear the risk if the project cannot win EIA approval. The approval process relies heavily on the judgement of members of the expert panel," he said.

Without a standardised approval process, one of two projects in adjacent areas could win EIA approval while the other does not. This has been a major risk for developers, he said.

Property firms are ready to do anything to protect the environment, but need a single set of standards, he noted.

"Standards aside, the checklist will also help us save costs. With the checklist, we can go ahead with the projects. Under the current rules, we need to wait for six to eight months for the expert panel to grant EIA approval," he said.

Large developers have to acquire land in advance, bearing the cost of interest while the land sits undeveloped.

Some big companies can tap funds from the bond market, offering a coupon rate of 5 per cent, but smaller firms have to depend solely on bank loans. The minimum loan rate is now 7 per cent per annum.

Edited November 12, 2012 by IsaanUSA

[Soi Sauce]

Would there be any chance of this SC Asset, ie Shinawatra Co, building affordable housing in Isaan for its supporters?

No! Just more of the same gov. sponsored corruption we had before. And the instigator had phone and airline co.s then.

Maybe all he now has in Thailand is property. Better milk it.

[asiawatcher]

I am told from fairly reliable sources the amount of building is directly related to storing funds gained through corruption. Owners don't care if they remain empty, it is their way of 'cleaning' money without having to leave it in the prying eyes of bwanke_rs. When they need a bit 'extra' they just sell off one condo.

[JSixpack]

time to make a new capital for thailand, same as people talked when it was about to be flooded?

this time they could make one that copies the good old USA ... big lanes, structured building, for easy access?

maybe first build a subway infrastructure and build along that route ....

With good old USA prices. You paying?

[SantiSuk]

time to make a new capital for thailand, same as people talked when it was about to be flooded?

this time they could make one that copies the good old USA ... big lanes, structured building, for easy access?

maybe first build a subway infrastructure and build along that route ....

Yep - that would be America.

Infrastructure = big (road) lanes (and nowt else)