EECD ToR going to cabinet next month
The terms of reference (ToR) for the Eastern Economic Corridor of Digital (EECD), one of the flagship developments under the government’s much-touted EEC scheme, are set to be proposed to the cabinet early next month.
Deputy Prime Minister Somkid Jatusripitak said many private companies are keen to invest in the EEC, so the government needs to hurry up and issue the ToR before the election.
Mr Somkid said the ToR should be completed this month, with bidding expected in January.
The EECD will be developed under a public-private partnership (PPP) model.
The EEC Committee meeting chaired by Prime Minister Prayut Chan-o-cha approved the PPP plan for the EECD this August. The EECD will cover one square kilometre. The EEC Office has yet to conclude the scale of the investment.
The private sector will bid to develop and handle the EECD and will be allowed to screen investment projects and take charge of the investment.
“There has been progress in the four main infrastructure projects at EEC while the Board of Investment [BoI] has just approved investment categories for smart cities, a vital component of the corridor,” said Mr Somkid.
Smart cities should be completed in five years to serve EEC investors in tandem with the high-speed rail network linking three airports, U-tapao aviation city, the expansion of the Map Ta Phut and Laem Chabang ports, he said.
Mr Somkid said private investment in EEC is expected to surge next year, with many companies having shown interest in smart cities.
On Nov 19 the BoI approved promotional privileges for smart cities to promote investment that covers land development, smart city systems, and smart industrial estates or zones. Investors are allowed to enjoy corporate income tax exemption for 5-8 years.
If investment projects are located in the EEC they will be entitled to a 50% reduction in corporate income tax for an additional five years after the tax holiday.
Smart cities are required to win prior approval of the smart cities development committee.
The BoI reported investment applications in EEC in the first nine months this year amounted to 288 projects, up by 13% from 255 last year, with a combined value of 231 billion baht, an increase of 117% from 106 billion in the same period last year.