Three EEC projects to be proposed
A WORKING GROUP on the Eastern Economic Corridor set up by the Cabinet plans to propose to the EEC Committee at the end of this month that it open opportunities for the private sector to join in the development of three infrastructure projects worth a total of Bt446 billion.
They are a project at U-tapao International Airport worth Bt200 billion, Laem Chabang Port Phase 3 worth Bt88 billion, and a high-speed railway from Bangkok to Rayong worth Bt158 billion.
Kobsak Pootrakool, vice minister in the Office of the Prime Minister, said that according to the proposal, private companies would be invited to participate in the three projects under the Public-Private Partnership Eastern Economic Corridor Fast-Track agreement.
The PPP EEC Fast Track arrangement aims to speed up the tendering process from the opening of bidding through approval of the projects for construction. Normally such PPP projects take 24 months to process, but the fast-tracking should reduce that to between eight and 10 months.
Kobsak said the fast-tracking would not cut corners on such things as Environmental Impact Assessments but would reduce duplication in work procedures.
Meanwhile, most of the infrastructure projects in the EEC that already have master plans and EIAs can use PPP EEC Fast Track to speed up the investment in the projects, he said.
By using the PPP-EEC-Fast Track system, Kobsak forecasts that bidding for the projects could open next year and investment begin by mid-2018.
The U-tapao International Airport project can start quickly because it is located on public land that does not need an EIA. The project entails a new passenger terminal and a new taxiway that will link the airport runway the aircraft repair centre.
Meanwhile, the EIA for the high-speed railway from Bangkok to Rayong has already been done, and bidding can open when the EEC Policy Board gives its approval.
Laem Chabang Port Phase 3 is in the EIA process, which may be complete by the end of this year.
Meanwhile, the government has promoted investment by the private sector in the EEC by offering tax incentives. For example, the Board of Investment has expanded its tax privileges for investors in the EEC by offering to halve their tax burden for an initial period. The corporate income tax rate is 20 per cent, but investors in the EEC will gain an eight-year tax holiday. Under the concession, they will pay only 10 per cent for the five years following the expiration of the tax holiday.
The EEC, taking in the provinces of Chachoengsao, Chon Buri and Rayong, is targeted for massive infrastructure spending to support technologically advanced industries.
The tax incentive will focus on targeted industries including advanced vehicle production, artificial intelligence, medical tourism, robotics, aviation, biochemicals, greener petrochemical production, infrastructure and logistics, and research and development.
