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Thailand: EEC operators want infrastructure repairs
Key business operators in the Eastern Economic Corridor (EEC) want the government to eliminate weak points in infrastructure development and investment incentive programmes during the recession to lure more foreign investment.
The global slowdown is an opportune time for authorities to solve water, land and investment issues in the EEC before businesses return to normal following the pandemic, said the companies.
PTT Global Chemical (PTTGC) chief executive Kongkrapan Intarajang said what worries him most is the risk of a water shortage and insufficient industrial land for investors.
PTTGC, a petrochemical arm of PTT, the national oil and gas conglomerate, has one of the biggest capital expenditures in EEC, which spans 30,000 rai in Chon Buri, Rayong and Chachoengsao.
Mr Kongkrapan said his company witnessed water scarcity in parts of the industrial sector in 2004 and is worried about a recurrence if the government does not prepare solutions in advance.
A shortage would have happened earlier this year during the drought if industrial communities in Rayong and Chon Buri had not adopted water-saving campaigns and invested in technology to save water during the production process, he said.
After the pandemic calms down, Mr Kongkrapan expects the EEC will grow significantly in terms of population and property development, which should greatly increase demand for water and land.
He said the country has signalled there are possible shortages of industrial land, causing land prices in the EEC to rapidly increase over the past few years.
PTTGC has spent 100 billion baht in capital expenditures developing new petrochemical facilities in Map Ta Phut, which are scheduled to finish by the end of this year. The company plans to add another 40 billion baht to its investment over three years.
Over the last four years, PTTGC has invested in downstream petrochemicals, following a state policy to encourage manufacturers to upgrade their commodity-grade polymers to speciality and engineering polymers that can be sold at higher prices.
Mr Kongkrapan said his company plans to discuss concerns over the EEC’s weaknesses with deputy prime ninister Supattanapong Punmeechaow.
Niphon Bundechanan, chief executive of WHA Utilities and Power (WHAUP), said investment privileges offered by the Board of Investment appear to be less attractive than those offered by the Vietnamese government. Without changes to investment conditions, investors will relocate out of Thailand, he said.
WHAUP provides utilities under WHA Corp Plc, Thailand’s largest industrial land developer and operator.
Source: https://www.bangkokpost.com/business/1995243/eec-operators-want-infrastructure-repairs