JICA cancels funding for anti-flood plan

The Japan International Cooperation Agency has had to drop its plan to provide Y500 million (Bt200 million) in support of a proposed flood-protection pilot project in one of the seven inundated industrial estates but will still offer technical assistance.
Industry Minister Wannarat Charnnukul said yesterday that a Japanese envoy told him that supporting both the technology and budget for the project was the JICA’s idea alone and the Japanese government so far has not agreed to it.
The JICA will provide recommendations to any industrial estate that wants to go ahead and construct the flood-protection system.
Wannarat has asked the JICA to clarify the situation with him officially.
Now industrial estates can choose their own technology and design for flood-protection systems, he added.
Arai Izumi, vice president of the JICA, said earlier during the meeting with Wannarat that the agency possessed expertise in infrastructure construction and technology to prevent floods in industrial parks, so it was willing to help any estate that is planning to invest in such a system.
The specific timing for construction and the budget support for the pilot project were not finalised during the discussion with the industry minister.
Wannarat said Samsung Electro-Mechanics (Thailand), an electronic-component manufacturing arm of South Korea-based Samsung, yesterday discussed with him the government’s measures to prevent floods in the future and possible incentives the company would receive for any new project in Thailand. The ministry insists that it has a concrete plan to prevent floods and that promotions from the Board of Investment of Thailand (BoI) will remain.
“Samsung’s executive told me that the company had already invested in a new building in preparation for the new investment project. The progress of the project is 30 per cent, but it has to suspend the plan to ask for a clear policy from the government in support of the investment,” he said.
Chang Kap Nam, president of Samsung Electro-Mechanics (Thailand), said the company had an investment project, but the details could not be disclosed at this time. The project is suspended because of the uncertain situation after the severe flooding. It would like to know if there are clear measures from the Industry Ministry for flood prevention and privileges from the BoI.
He said the company had to consider further the Thai government’s measures to prevent floods. It has to report the progress on the measures to its parent company in South Korea and let the head office make the decision on whether it will continue investing in the new project in Thailand.
Samsung Electro-Mechanics has manufacturing facilities in Wellgrow Industrial Estate and in Chon Buri’s Sri Racha district. All products made in Thailand are exported. The company also has factories in the Philippines and China.