Observation tower kicks off on shaky ground
Not everyone is convinced the non-profit project is intended to benefit the public, write Supoj Wancharoen and Wichit Chantanusornsiri
Although the project was drawn up in late 2015, the Bangkok Observation Tower didn’t catch the public’s attention until it was given the green light by the cabinet last week.
The 4.62-billion-baht tower to be built on a Chao Phraya Riverside plot owned by the Treasury Department was awarded to a private developer, which is also involved in a project called Iconsiam, without a bidding process.
Many suspect the 459-metre building would benefit the adjacent Iconsiam, a commercial edifice worth over 50 billion baht which is expected to open at the end of this year.
However, Patchara Anuntasilpa, t he department’s director-general, said the 4-rai plot had been unoccupied for years as it’s hard to get to by vehicle.
The department took the media to visit the plot on June
30, a few days after the cabinet’s approval.
During the visit, the Bangkok Post found the land could be accessed on foot through Charoen Nakhon Soi 7.
The mouth of the soi was about three metres wide, and was reduced to one metre at the entrance.
The best access point is by river, but there is no pier at the moment.
According to Mr Patchara, a private company, led by Iconsiam Group, showed interest in the plot in late 2015.
After negotiations, they agreed to build an observation tower to symbolise the unity of the Thai people (the Unity Tower) worth an estimated 4.62 billion baht.
This happened to come under the government’s policy to create a project celebrating King Rama IX’s philosophy of sustainability.
Mr Patchara said the existing Bangkok Observation Tower Foundation will manage the tower.
The land will be rented out for 30 years with an approximate 400,000 baht per year lease, which would increase by 15% every five years.
The first year, the foundation will have to pay 60 million baht to cover extra expenses including the construction of a building for the Marine Police, the previous tenant, who had to be relocated.
By the end of the 30-year concession, t he f oundation will have paid 198 million baht in total, after which ownership of t he tower will be transferred to the government.
The tower was designed to have 24 floors, excluding two underground levels. The lower floors would be used for organising activities and exhibitions, while the upper levels would be turned into an observation deck, and a space for religious artefact displays and exhibitions of each king’s royal duties.
No restaurants or shops are allowed in the tower, since the project’s purpose is not to achieve commercial gain, according to the plan.
Thammasat University was hired to conduct a financial evaluation based on the estimation that the tower will have 4,000 visitors each day, tempting them to stay an extra night in Bangkok.
The entrance fee would be 750 for foreigners and 300 for Thais.
The evaluation found the landmark will generate 46.8 billion baht for the economy while the foundation would suffer an estimated net loss of 769 million baht over the 30-year period.
The path accessing the site from Charoen Nakhon Road will have to be widened to allow cars to pass, he said.
“It is a win-win situation for both the private and public sectors,” he insisted.
The government would get a new landmark without investing money and private firms will gain benefits from having a tourist site near their shopping centre.
Without the cabinet exempting the project from the Public-Private Partnership Act, it would take another three months to follow normal procedures.
He said bidding is unnecessary because no one had ever shown interest in using this land.
This is a non-profit project not a commercial one, so it does not attract investors.
Associate Professor Totrakul Yomnak, former president of the Engineer Institute of Thailand under HM the King’s Patronage, posted a message on his Facebook page in support of the project.
Due to the location problem the Treasury Department forbade people from doing business or generating revenue there, making the land only suitable for building warehouses.
The project has already passed an Environmental Impact Assessment and was announced to the public. He believes nothing shady is going on.
However, Asst Prof Panit Pujinda from Chulalongkorn University’s Faculty of Architecture, raised the question of whether the project had to be just an observation deck.
“If the observation tower project could solve the location problem, then any project should be able to solve the same problem,” he said, saying the tower could have other functions rather than only being an observation deck.
Tourists don’t make decisions about visiting a destination based on an observation tower in a city.
What influences then are food, culture, local ways of life, and history, said Asst Prof Panit, asking whether anyone visits Japan because of the Tokyo Sky 3.
The tower would be just a small part of their trip, he said. Citizens only get indirect economic gains from the project. The ones who would truly receive direct benefits are private companies who own land near the observation tower.
The academic also said the government should prioritise its spending.
If the government has a budget as huge as 4.62 billion baht, it should spend it on more important matters.
The government represents its people and should act for the benefit of its people and should not let a private company solely dictate the direction of the project, said Asst Prof Panit.
The private sector should not get complete control of the project just because of their investment.