Treasury Department defends observation tower project

Patchara Anuntasilpa said yesterday that the department had planned to develop its 4.2 rai land plot on the banks of the Chao Phraya River to |honour the late King Bhumibol. 
The department did not need to contribute financially to the project because the private groups planned to invest Bt4.62 billion to build the Unity Tower. 
The department responded to criticism that the Siam Piwat Group, which is developing a residence and shopping complex called Icon Siam, has a vested interest in the project. 
Critics expressed concern that the sites of the Icon Siam and the tower are next to each other and a board director of the Siam Piwat Group is also an executive of the foundation behind the tower. 
Patchara said Cabinet approved the project in December. The tower is part of government efforts to promote sustainable development and co-operation between the government and the people. 
Earlier this year, the Public-Private Partnership Committee asked Cabinet to bypass the normal open bidding process to pick a private organisation for the project. 
On June 27, the Cabinet gave the green light for constructing and |management of the tower without competitive bidding. Revenue after expenses from the tower will be used to support the public projects, said Patchara. 
The department said the project was not commercial, so there would be no collusion between private groups and the public sector as critics fear.
The tower will be a new landmark for the country’s tourism industry as it will be a symbol of a ‘new global |destination’, according to the Treasury Department. 
The department will get a land lease fee worth Bt400,000 per year and the lease fee will increase 15 per cent every five years for the 30-year land lease contract.