Govt plans to pay for most of dyke costs at industrial estates

The Industrial Estate Authority of Thailand (IEAT) will handle the budget for financial assistance to estate operators that have to prepare for flooding this year, Somchai Sujjapongse, director-general of the Fiscal Policy Office, said yesterday.
Although the government might face criticism for giving grants to private companies as it might go against the law, Somchai insisted that it could be done, since it was part of the government’s flood-prevention measures.
Somchai’s statement is in line with policymakers’ stance on the issue.
Deputy Prime Minister Kittiratt Na-Ranong has said the government does not want manufacturers in the seven industrial parks that were inundated last year to incur more costs and wants to win back their confidence so that they do not move out of the country. That means the government needs to offer financial assistance.
Kittiratt has said the funds would come from premiums collected by the government under its deposit-insurance scheme.
Somchai said the two sides – the IEAT and the private sector – would soon sign a memorandum of understanding.
In exchange for the financial aid, the government will demand co-ownership of the dykes, he said. The floodwalls will be built to the standards set by the Japan International Cooperation Agency and the Thai Industry Ministry.
Maintenance costs will be borne by the private industrial operators, he said.
The financial-assistance budget might be submitted to the Cabinet today.
The government has also instructed the Government Savings Bank to provide 15-year loans worth Bt15 billion at an annual interest rate of only 0.01 per cent for flood projects.