On 22 January 2010, the court rejected a request for assistance filed by operators of a total of 30 suspended projects located in Map Ta Phut industrial estate. Afterwards, 16 of the 30 projects lodged appeals against the court’s injunction; however, the appeals have been dropped, and the operators are deprived of the rights to appeal further with the Supreme Administrative Court.
The 16 industrial projects are operated by 12 firms, namely PTT Plc, PTT Chemical Plc, Vinythai Plc, Thai Ethanol-Amine Co, Ltd, Bangkok Polyethylene Plc, PTT Utilities Co, Ltd, Amata B. Grimm Power Service Co, Ltd, MTP HP JV (Thailand) Co, Ltd, Siam Tinplate Co, Ltd, Ube Nylon (Thailand) Co, Ltd, Bangkok Synthetics Co, Ltd, and BRP Steel Co, Ltd.
The Administrative Court earlier issued an injunction for 76 projects in Map Ta Phut industrial estate to halt functioning for their failure to pass the environmental and health impact assessments as required by the Constitution. 21 industrial projects are presently allowed to resume operation while 55 others remain frozen.
]]>Speaking at a NIDA seminar on Thursday, Mr Ekkachai Nittayakasetwat, Dean of NIDA’s Faculty of Business Administration, revealed today that the country’s projected gross domestic product growth rate of 3.8% would be achievable if the Map Ta Phut industrial stalemate has been resettled by this year’s end. He noted that the operations of the industrial projects and the GDP during 2010-2011 might also be affected due to the delayed establishment of an independent body comprising environmental and health experts as required by Section 67 of the 2007 constitution.
The Administrative Court earlier issued an injunction for 76 projects in the Map Ta Phut industrial estate to halt functioning for their failure to comply with environmental and health impact assessment requirements as required by the Constitution. 23 projects are presently allowed to resume operation. Four of them have been recently endorsed by the Office of Natural Resources and Environmental Policy and Planning (ONEP). A total of 49 industrial projects remain suspended by the court’s order.
]]>Mr Sorayud Petchtrakul, Assistant to the Industry Minister and Chairman of committee in charge of seeking solutions to Map Ta Phut industrial projects, disclosed that the continuation of the four frozen projects was due to the fact that they are extended parts of the exisiting projects and thus do not require new environmental impact assessments (EIA).
The panel is preparing to seek the court’s order to unfreeze another 9 projects over the next few weeks, said Mr Sorayud, adding that four of them were owned by PTT Asahi Chemical Company Limted. The company has already imported the necessary equipment and machinery for the projects which are now under construction. The remaining projects have also been granted operating licences and have ordered machinery and construction materials.
The Administrative Court earlier issued an injunction for 76 projects in the Map Ta Phut industrial estate to halt functioning for their failure to comply with environmental and health impact assessment requirements as required by the Constitution. 21 industrial projects are presently allowed to resume operation, while 55 others remain frozen.
]]>BoT Senior Director for Domestic Economy Department, Suchart Sakkankosone, said most of the projects, currently non-performing, had already received loans from financial institutions with affixed transaction fees and interests.
Mr Suchart also relayed the Japan External Trade Organization’s (JETRO) negative sentiments towards investment in Thailand, saying that the government should take this into consideration since Japan was Thailand’s most important and biggest investor.
The 65 projects have combined loans of 200 billion THB. 95 billion THB has been used.
President of the Federation of Thai Industries, Santi Wilassakdanont, said JETRO’s concerns over the Map Ta Phut problem would be discussed by the Joint Standing Committee on Commerce, Industry and Banking of the three private institutions on 11 January. The president said it was necessary for the government to inform JETRO of its past actions to tackle the Map Ta Phut impasse since the bank’s opinions would affect new Japanese investors’ decisions.
Prime Minister Abhisit Vejjajiva will visit the Map Ta Phut industrial estate on 16 January 2010 to monitor compensations and the use of 872 million THB for five suspended projects.
After meeting Munenori Yamada, president of Bangkok-based JETRO, Mr Charnchai said Mr Yamada told him that the problem should be resolved sooner, otherwise it can damage the confidence of investment fund resources and financial institutes, which may cancel loans to several Thai-Japan investment projects.
The Ministry of Industry clarified to JETRO about suspension of 65 Map Ta Phut industrial projects.
Thai Bankers’ Association president Apisak Tantivorawong said that so far no financial institutions have cancelled loans granted to investment projects in Map Ta Phut. However, if any loans to those projects are cancelled, Thailand’s state-owned financial institutions such as Krung Thai Bank are ready to support them, Mr Apisak said.
Meanwhile, Finance Minister Korn Chatikavanij pledged to oversee the problem and find financial sources for Map Ta Phut industrial projects. Labour minister Paitoon Kaewthong said the ministry will provide assistance to the unemployed affected by suspension of the industrial projects.
Mr Charnchai gave assurances that Japanese investors are still confident about the Thai economy and will continue their businesses in Thailand.
In September a Central Administrative Court injunction suspended 76 industrial projects at Map Ta Phut due to environmental concerns. The injunction followed complaints from residents and environmental groups that state agencies had failed to issue proper operating licences for the industrial projects.
The Supreme Administrative Court later allowed 11 of the 76 projects to continue operating, with 65 to remain shuttered until they comply with the environmental and health requirements of Section 67 of the 2007 Constitution. (TNA)
]]>According to the court’s ruling, the operations of the remaining 65 projects are still suspended in compliance with the Administrative Court’s order in September. The Supreme Administrative Court’s deliberation came after state agencies and private firms of 76 projects in Map Ta Phut industrial state appealed against the injunction.
On 28 September, the Administrative Court gave the injunction after relevant environmental agencies and local residents in the industrial estate had filed a complaint with the court seeking an emergency hearing and an injunction to temporarily suspend all 76 planned projects at Map Ta Phut industrial estate due to mounting concerns over the environmental effects and the people’s health problems.
The government then requested the Office of the Attorney-General (OAG) to appeal to the Supreme Administrative Court for the revocation of the injunction, claiming that all the investment projects have passed the health and environment assessment test as required by the constitution.
]]>Rayong governor, Sayumporn Limthai stated that the newly-appointed four-party committee chaired by Former Prime Minister Anand Panyarachun is scheduled to travel to the Map Ta Phut industrial estate to gather information and listen to overall problems from different groups of local residents from 5 to 7 December. He said the province was preparing to present the reports containing problems and complaints from local people to the four-party panel for consideration.
The government has initially given nods to a 270 million THB budget for tackling accumulated garbage, said the governor, adding that the Cabinet would approve additional budgets next week for solving water sources and health problems as the shortage of drinking water still prevailed in the area.
The Administrative Court’s injunction came after relevant environmental agencies and local residents residing in the industrial estate had lodged a complaint with the court seeking an emergency hearing and an injunction to temporarily suspend all 76 planned projects at Map Ta Phut industrial estate due to mounting concerns over the environmental effects and the people’s health problems.
The government later asked the Office of the Attorney-General (OAG) to appeal to the Supreme Administrative Court for the revocation of the injunction, claiming that all the investment projects have passed the health and environment assessment test as required by the constitution and have yielded no environmental impacts.
]]>Assistant BoT Governor Paiboon Kittisrikangwan admitted today that court injunctions for 76 Map Ta Phut projects might impact both domestic and foreign investments into the Rayong industrial estate. Mr. Paiboon said the court decisions may shift invest to other countries and obstruct the nation’s economic recovery.
The BoT assistant governor assured that the bank was monitoring the economic situation closely and collecting relevant information to evaluate the outcomes of the Administrative Court’s rulings. He noted that it would require time to generate a clear picture of how much the national economy would be affected from the suspension of the projects, adding that the confidence index of investors must be surveyed as well.
The Administrative Court issued its verdicts to temporarily halt the 76 industrial projects in Map Ta Phut due to heavy concern over the estate’s critical environmental and health effects.
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