Makkasan, Chong Nonsi land talks begin today

The Ministries of Finance and Transport will today start negotiations on the long-term lease of the State Railway of Thailand's two land plots in Bangkok, including the 490-rai area in Makkasan.

Treasury Department director-general Naris Chaiyasoot said land measurement for the Makkasan plot was complete, while those for the river-front 270-rai plot in Chong Nonsi will start soon. He said the Makkasan plot showed greater commercial potential; while the other contained development limitations – it is located in a densely populated area and near a military safety zone, with a narrow entrance from the main road.

The Makkasan plot would entail huge investment, Naris said. Any government project valued above Bt1 billion and awarded to private companies must come under the Public-Private Joint Venture Act. SRT’s land in the area encompasses a total of 700 rai, but some now houses the Airport Rail Link.

“It could be turned into a shopping complex, a concert hall, a bus station, a hospital and a residential complex,” Naris said. He added that, as proposed by Finance Minister Kittiratt Na-Ranong, some space might be turned into public facilities like a park, a sport stadium or a museum.

The department will evaluate the land prices and development costs. Then, the Public Debt Management Office and the State Enterprise Policy Office will determine the leasing terms and cost, which would be used to partially relieve the SRT’s debt. Upon the Cabinet’s approval, the Treasury Department is ready to launch the development.

“Any revenue will be sent to the Finance Ministry to relieve the SRT's debt. The minister said it’s like moving money from one pocket to another. But then, there should be some extra revenue and this should give SRT breathing space while it improves its [financial] condition,” he said.

Naris is looking for a 50-year leasing term, plus a 50-year renewable period. SRT is saddled with some Bt100 billion in debt, created by operating losses, equipment acquisitions, financial loans for the Airport Rail Link project, and pension burden. It will be decided which part of the debt would be settled by the leasing deal.