Laem Chabang project set to sail ahead after Cabinet agrees to lower returns
The Laem Chabang Port development project is expected to cast off after the Cabinet agreed to adjust down the project’s estimated returns to the state to Bt29.05 billion, which is the value agreed to by both bid winner GPC Consortium and the Port Authority of Thailand (PAT), PAT director-general Lt-Junior Grade Kamolsak Promprayoon said on Wednesday.
The project includes the development of the third phase of Laem Chabang Port, also known as Port F.
GPC Consortium, which includes PTT Tank Terminal, a subsidiary of PTT; Gulf Energy Development, and China Harbour Engineering, had previously proposed a net present value (NPV) of returns to the state of Bt12.05 billion, lower than the default amount of Bt32.2 billion the state had expected from the project. This led the Eastern Economic Corridor Office to propose to the Cabinet that it adjust the estimated returns down to Bt29.05 billion.
GPC will now present recommendations on increasing the efficiency of Port F to the Eastern Economic Corridor Office committee for its approval.
Kamolsak added that PAT has agreed to the lower returns to the state as it estimated that restarting the bidding process could delay Port F’s opening by up to two years.
