EEC spending forecast to reach B600bn
The government expects investment in the Eastern Economic Corridor (EEC) to increase from 500 to 600 billion baht over the next five years, fuelled by stimulus measures and infrastructure projects, says Industry Minister Uttama Savanayana.
Deputy Prime Minister Somkid Jatusripitak met with senior government officials and the industry minister yesterday to discuss the EEC plan the government will propose on Feb 1 to the EEC committee, which is chaired by Prime Minister Prayut Chan-o-cha.
“The deputy prime minister ordered the Industry Ministry to increase last year’s 500-billion-baht project investment value in the EEC’s 10 targeted S-curve industries,” he said.
Investors have applied for EEC investment worth a cumulative 250 billion baht since the state opened applications to the private sector last year.
Mr Uttama said the government will move forward with five infrastructure projects in the EEC this year, including a 210-billion-baht high-speed train to connect three airports. Private investors can submit bids for this project in February’s auction, after the government releases its terms of reference (ToR). The state expects to sign a contract with a private company in September 2018, and for the project to begin operating in 2023.
The government is scheduled t o announce the ToR for the 160-billion-baht U-tapao airport in February and sign a contract for it in December 2018. The airport is expected to begin operations in 2023.
The government is also expected to announce the ToR for deep-sea port projects such as Map Ta Phut phase 3 in June. A contract for the project is projected to be signed in November, with operations to start in 2024.
The ToR for Laem Chabang port phase 3 is to be announced in August, with a contract expected in December. Operations are estimated to begin in 2025, he said.
The government will announce the ToR for the EEC’s aviation maintenance, repair and operations hub in March and sign a contract in July 2018, with operations expected to begin in 2021.
Mr Uttama said the ministry is in talks with Lazada Group, a subsidiary of Alibaba Group, to increase Lazada’s investment budget in its fifth generation EEC e-commerce park project.
“Next month, Lazada will reveal its updated EEC business plan, in which it will include its investment budget, the area of investment and its cooperation plan with the Thai government to support small and medium-sized businesses [SMEs],” he said.
Alibaba is conducting a feasibility study to invest in EEC projects in Rayong, Chon Buri and Chachoengsao.
“Alibaba confirmed it will invest in the EEC because it is the most attractive investment project in Asean. Thailand provides the greatest opportunities to expand the e-commerce market, and is at the geographic centre of the region,” he said.
The new e-commerce park is a one-of-akind facility in the region, including a distribution centre, logistics hub, production plant and a training centre for Thailand’s SME business and processing centres.
EEC Office secretary-general Kanit Sangsubhan said the EEC’s committee plans to meet on Jan 17 to approve a plan to build 18 industrial estates, including the Hemaraj industrial estate, the Amata industrial estate and the Pintong industrial estate, which will occupy a combined 26,000 rai.