Standard & Poor's investment-grade composite spread tightened yesterday to 209 basis points (bps), while its speculative-grade counterpart compressed to 653 bps. By rating, the 'AA' and 'A' spreads tightened one basis point each to 144 bps and 180 bps, respectively, and 'BBB' tightened 3 bps to 264 bps. The 'BB' spread tightened 5 bps to 484 bps, 'B' compressed 6 bps to 654 bps, and 'CCC' tightened 15 bps to 1,040 bps.
By industry, financial institutions, banks, and industrials tightened 4 bps each to 366 bps, 288 bps, and 336 bps, respectively. Utilities and telecommunications followed, tightening 2 bps each to 212 and 318 bps, respectively.
Despite material tightening since their record highs in December 2008, the speculative-grade spread remains range-bound within a default cycle, and the investment-grade spread continues to face pressure from financial institutions and banks. In addition, speculative-grade defaults continue to accelerate, as does the preponderance of credit downgrades. Because of these factors, we expect spreads to remain at their elevated levels for some time as investors, the credit markets, and the economy cautiously tread through the current recessionary period.
Tuesday, December 15, 2009
ROLLS-ROYCE INCREASES SINGAPORE INVESTMENT TO SUPPORT CONTINUED GROWTH
Rolls-Royce, the global power systems company, announced plans to build a new wide chord fan blade (WCFB) factory in Singapore. The factory will be located at the Group’s Seletar Campus alongside the previously announced ‘Facility of the Future’, which will test and assemble Trent aero engines.
Total investment in the Rolls-Royce Seletar Campus, including investment in the WCFB factory, will exceed S$700million (around £300 million). It will create approximately 500 new jobs when fully operational, bringing the number of people employed by the Group in Singapore to around 2,000. Construction of the Facility of the Future and all other elements of the campus, including a regional training centre, will begin in the first quarter of 2010.
The new factory will be the first outside the UK to manufacture Rolls-Royce hollow titanium WCFBs, a technology which has played a key role in the success of the Trent engine family. It will provide additional capacity to the Group’s Barnoldswick factory in the UK, which Rolls-Royce separately announced will be receiving further investment.
The Group’s growing global order book totalled £55.5 billion at the end of 2008, of which 44 per cent was generated by customers in the Asia Pacific region. The Group’s success in global markets generates the need for additional capacity to support long-term growth and an expanding customer base.
The decision to locate the new facility in Singapore has been determined by four strategic considerations: the benefits of locating major facilities close to key customers; the business continuity benefits that will arise from locating critical component manufacturing in two locations; the highly competitive skills and productivity levels in Singapore, exemplified by the Group’s joint venture partnerships with Singapore Airlines Engineering Company; and the support provided by the Singapore Economic Development Board (EDB) and Jurong Town Corporation (JTC).
Sir John Rose, Rolls-Royce Chief Executive, commented: “Singapore has become a vitally important centre for the Group’s operations and this latest investment in wide chord fan blade capability reflects our continuing confidence in Singapore as a place to locate high value-added manufacturing. I am particularly pleased that we are receiving the support of the Singapore EDB with whom we already have a very strong relationship.”
Mr Leo Yip, Chairman EDB, commented: "We are delighted that Rolls-Royce has chosen Singapore for the manufacture of Wide Chord Fan Blades. This, together with Rolls-Royce's Trent aero engine assembly and test facility at Seletar Aerospace Park, is a strong vote of confidence in Singapore's capabilities to be a home for high-value manufacturing and development activities. The Rolls-Royce campus taking shape at Seletar reinforces our position as a leading global aerospace hub, and reflects the very strong partnership between Rolls-Royce and Singapore.”
NOTES TO EDITOR
1. Rolls-Royce is a global business, providing and supplying integrated power systems for use on land, at sea and in the air. The Group has established a strong position in civil aerospace, defence aerospace, marine and energy markets.
2. Rolls-Royce employs around 38,000 skilled people in offices, manufacturing and service facilities in 50 countries. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.
3. Businesses are headquartered in the UK, US and Singapore. This global presence allows the Group to deliver benefits to its partners, in addition to being able to access long-term international growth opportunities with its technology, presence, partnerships and people.
4. Singapore is a key business hub for the Group. It is home to the global headquarters of the Group’s Marine business and the regional headquarters of its Asian Energy business. The Group’s Advanced Technology Centre and Procurement office is also located in Singapore and handles the management of suppliers in South Korea, Taiwan, Malaysia, India and South East Asia.
5. Rolls-Royce is developing its Facility of the Future, a Trent aero engine testing and assembly facility, at its new Seletar Campus in the Seletar Aerospace Park. It will be the most modern Rolls-Royce production engine assembly and test facility for large commercial aero engines, and the Group’s first in Asia.
6. Rolls-Royce has established a number of highly successful joint venture partnerships in Singapore, primarily with Singapore Airlines Engineering Company Limited (SIAEC). These include Singapore Aero Engine Services Limited (SAESL) and International Engine Components Overhaul (IECO), both of which provide services to major regional and global carriers.
7. The Singapore Economic Development Board is the lead government agency responsible for planning and executing strategies to enhance Singapore’s position as a global business centre and grow the Singapore economy. The EDB’s support for the Rolls-Royce Seletar Campus includes development grants, training support and the coordination of Singapore government agencies that enabled efficient and focussed discussions through the decision process.
8. Rolls-Royce has unique capability in the production of hollow WCFBs, which are critical components used in fans for civil and military engines and central to the performance of the engine.
9. The Group’s annual underlying revenues were £9.1 billion in 2008, 52 per cent of which came from services revenues. The firm and announced order book at the end of 2008 stood at £55.5 billion, providing visibility of future levels of activity.
10. The Group has invested £1.4 billion in capital projects over the last five years and £3.7 billion in research and development (R&D). In 2008, Rolls-Royce and its partners invested £885 million in R&D, two thirds of which had the objective of further improving the environmental aspects of its products, in particular the reduction of emissions.
11. Research and development is carried out in facilities in the UK, Canada, Germany, Singapore, the US and Scandinavia and the Group has particularly strong relationships with the 27 Rolls-Royce University Technology Centres worldwide.
Rolls-Royce celebrates 20 years in Thailand
In 2009, Rolls-Royce celebrates its 20th anniversary of business achievement in Thailand. Rolls-Royce is a global business, providing integrated power systems for use on land, at sea and in the air in Thailand for over forty years and has been based in Thailand since 1989. Rolls-Royce has established a strong position in Thailand in the areas of civil aerospace, defence aerospace, marine and energy. Rolls-Royce has a broad customer base comprising government agencies, commercial airlines, public utilities, pipeline operators and energy customers. Today there are over 300 Rolls-Royce engines in service in Thailand. Rolls-Royce is committed to working in Thailand and supporting the country through investment, innovation and education. In 1996 Rolls-Royce funded an engine test cell for Thai Airways International at Don Muang airport, and continues to support the development of Thai society through on-going corporate social responsibilities programmes. Rolls-Royce is extremely proud of its long association with the Kingdom of Thailand and wishes to continue this partnership for many years.
For visual material:
Please visit the Rolls-Royce Media Room for images and The Newsmarket for broadcast-standard video. If you are a first-time user of The Newsmarket, we encourage you to take a moment to register. If you have any questions about using The Newsmarket, please email Journalist Help.
Total investment in the Rolls-Royce Seletar Campus, including investment in the WCFB factory, will exceed S$700million (around £300 million). It will create approximately 500 new jobs when fully operational, bringing the number of people employed by the Group in Singapore to around 2,000. Construction of the Facility of the Future and all other elements of the campus, including a regional training centre, will begin in the first quarter of 2010.
The new factory will be the first outside the UK to manufacture Rolls-Royce hollow titanium WCFBs, a technology which has played a key role in the success of the Trent engine family. It will provide additional capacity to the Group’s Barnoldswick factory in the UK, which Rolls-Royce separately announced will be receiving further investment.
The Group’s growing global order book totalled £55.5 billion at the end of 2008, of which 44 per cent was generated by customers in the Asia Pacific region. The Group’s success in global markets generates the need for additional capacity to support long-term growth and an expanding customer base.
The decision to locate the new facility in Singapore has been determined by four strategic considerations: the benefits of locating major facilities close to key customers; the business continuity benefits that will arise from locating critical component manufacturing in two locations; the highly competitive skills and productivity levels in Singapore, exemplified by the Group’s joint venture partnerships with Singapore Airlines Engineering Company; and the support provided by the Singapore Economic Development Board (EDB) and Jurong Town Corporation (JTC).
Sir John Rose, Rolls-Royce Chief Executive, commented: “Singapore has become a vitally important centre for the Group’s operations and this latest investment in wide chord fan blade capability reflects our continuing confidence in Singapore as a place to locate high value-added manufacturing. I am particularly pleased that we are receiving the support of the Singapore EDB with whom we already have a very strong relationship.”
Mr Leo Yip, Chairman EDB, commented: "We are delighted that Rolls-Royce has chosen Singapore for the manufacture of Wide Chord Fan Blades. This, together with Rolls-Royce's Trent aero engine assembly and test facility at Seletar Aerospace Park, is a strong vote of confidence in Singapore's capabilities to be a home for high-value manufacturing and development activities. The Rolls-Royce campus taking shape at Seletar reinforces our position as a leading global aerospace hub, and reflects the very strong partnership between Rolls-Royce and Singapore.”
NOTES TO EDITOR
1. Rolls-Royce is a global business, providing and supplying integrated power systems for use on land, at sea and in the air. The Group has established a strong position in civil aerospace, defence aerospace, marine and energy markets.
2. Rolls-Royce employs around 38,000 skilled people in offices, manufacturing and service facilities in 50 countries. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.
3. Businesses are headquartered in the UK, US and Singapore. This global presence allows the Group to deliver benefits to its partners, in addition to being able to access long-term international growth opportunities with its technology, presence, partnerships and people.
4. Singapore is a key business hub for the Group. It is home to the global headquarters of the Group’s Marine business and the regional headquarters of its Asian Energy business. The Group’s Advanced Technology Centre and Procurement office is also located in Singapore and handles the management of suppliers in South Korea, Taiwan, Malaysia, India and South East Asia.
5. Rolls-Royce is developing its Facility of the Future, a Trent aero engine testing and assembly facility, at its new Seletar Campus in the Seletar Aerospace Park. It will be the most modern Rolls-Royce production engine assembly and test facility for large commercial aero engines, and the Group’s first in Asia.
6. Rolls-Royce has established a number of highly successful joint venture partnerships in Singapore, primarily with Singapore Airlines Engineering Company Limited (SIAEC). These include Singapore Aero Engine Services Limited (SAESL) and International Engine Components Overhaul (IECO), both of which provide services to major regional and global carriers.
7. The Singapore Economic Development Board is the lead government agency responsible for planning and executing strategies to enhance Singapore’s position as a global business centre and grow the Singapore economy. The EDB’s support for the Rolls-Royce Seletar Campus includes development grants, training support and the coordination of Singapore government agencies that enabled efficient and focussed discussions through the decision process.
8. Rolls-Royce has unique capability in the production of hollow WCFBs, which are critical components used in fans for civil and military engines and central to the performance of the engine.
9. The Group’s annual underlying revenues were £9.1 billion in 2008, 52 per cent of which came from services revenues. The firm and announced order book at the end of 2008 stood at £55.5 billion, providing visibility of future levels of activity.
10. The Group has invested £1.4 billion in capital projects over the last five years and £3.7 billion in research and development (R&D). In 2008, Rolls-Royce and its partners invested £885 million in R&D, two thirds of which had the objective of further improving the environmental aspects of its products, in particular the reduction of emissions.
11. Research and development is carried out in facilities in the UK, Canada, Germany, Singapore, the US and Scandinavia and the Group has particularly strong relationships with the 27 Rolls-Royce University Technology Centres worldwide.
Rolls-Royce celebrates 20 years in Thailand
In 2009, Rolls-Royce celebrates its 20th anniversary of business achievement in Thailand. Rolls-Royce is a global business, providing integrated power systems for use on land, at sea and in the air in Thailand for over forty years and has been based in Thailand since 1989. Rolls-Royce has established a strong position in Thailand in the areas of civil aerospace, defence aerospace, marine and energy. Rolls-Royce has a broad customer base comprising government agencies, commercial airlines, public utilities, pipeline operators and energy customers. Today there are over 300 Rolls-Royce engines in service in Thailand. Rolls-Royce is committed to working in Thailand and supporting the country through investment, innovation and education. In 1996 Rolls-Royce funded an engine test cell for Thai Airways International at Don Muang airport, and continues to support the development of Thai society through on-going corporate social responsibilities programmes. Rolls-Royce is extremely proud of its long association with the Kingdom of Thailand and wishes to continue this partnership for many years.
For visual material:
Please visit the Rolls-Royce Media Room for images and The Newsmarket for broadcast-standard video. If you are a first-time user of The Newsmarket, we encourage you to take a moment to register. If you have any questions about using The Newsmarket, please email Journalist Help.
Thursday, November 19, 2009
HEMARAJ - 9 MONTHS 2009 NET PROFIT OF BAHT 423 MILLION
Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 3, 2009 and year to date as summarized below.
Quarter 3’2009 and 9 months of 2009 Net Income
For Quarter 3’2009, Hemaraj reported Total Net Income of Baht 75.6 million, or a decrease of 81% compared with the same period last year. Earnings per-share was 0.008 Baht per share, representing a decrease of 81% from the same period of last year.
For the first 9 months of 2009, Hemaraj reported Total Net Income of Baht 422.9 million, or a decrease of Baht 842.7 million or 67% compared with the same period of 2008. The decrease of Net Income from Operating Business for Quarter 3’2009 and the first 9 months of 2009 was mainly due to lower industrial land sales and no property sales compared to the same period of the prior year. Earnings per-share was 0.045 Baht per share, representing a decrease of 67% from the same period of last year.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Total Revenue of Baht 1,723 million for the first 9 months of 2009 represents a decrease of 59% from last year. Hemaraj Total Net Income was Baht 423 million for the same period.
All things considered, the first nine months of 2009 has shown reasonable performance in coping with the severe international and local conditions while benefiting from increasing broad recurring revenue. We continued to be profitable with a strong balance sheet for future positioning.
As noted at year-end 2008 and the first half of 2009, global economic conditions led to a dramatic collapse in durable goods consumption. Subsequent reductions in production levels to reduce inventory reflecting lower demand have now stabilized. Thailand is starting to return to more normal run rate levels of production particularly for petrochemicals with increases in purchasing and other durable goods leading indicators.
The investment in Hemaraj’s business model will remain attractive. Thailand has in the past provided an improving investment climate and predictable rules of law enforcement. However, there are current environmental concerns where investors have complied with the rules and laws in place and are seeking the government resolve for the protection of their rights and investment.
The opportunity remains for Thailand to benefit from the investment relocation and expansion of production to strategic locations based on cost currency and market access. Industrial cluster opportunities will continue for automotive, petrochemical, and other industrial sectors long term, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard and Hemaraj’s petrochemical cluster in MapTaPhut, Rayong.
Hemaraj has 77% lower revenue from industrial estate sales for the first nine months of 2009. Encouragingly we have seen a 26% growth in Utilities revenue and an 11% growth in Rental
Property revenue year to date. Our broadened recurring revenue strategy and a strong balance sheet shielded market disruption while recovering to a normal level continues.
We further continued our investment in the Gheco-One IPP power project, being on schedule.
The Hemaraj business and financial plans reflect current conditions as well as opportunities in order to optimize predictable returns to shareholders. We are cautious of economic political and market risks and appreciate the appropriate responsibility entrusted to us.”
Revenue and Results of Operations for 9 Months of 2009
For the first 9 months of 2009, Hemaraj’s Total Revenue was Baht 1,723.0 million compared with Baht 4,181.9 million for the same period of 2008, representing a 59% decrease. Total Operating Revenue from core businesses was Baht 1,738.0 million, a 56% decrease from the same period of 2008. Industrial Estate Land Sales for the first 9 months of 2009 including Profit from Associated Industrial Estate were Baht 563.6 million, or a 77% decrease. There is an additional Baht 762 million in deferred revenue from Industrial Estate Land Sales not recognized to date, based on the percent completion method from 3 industrial estate new phase developments and representing sales that will be recognized primarily over the next 3 to 18 months.
Total Utilities Revenue including industrial estate utilities, profit dividend from power utilities associates, and other utilities and services fees increased to Baht 809.4 million, an increase of 26%. Total Rental Revenue including SME factory rental, pipe-rack rental, and commercial office rental increased to Baht 391.2 million, an increase of 11%. There was no Sale of Property including SME factory sales, residential sales and other land/property for 2009 to date.
The Gross Profit was Baht 755.5 million, a 54% decrease from the same period of last year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 446.0 million, a decrease of 66%. The Gross Profit Margin and EBITDA Margin were 46% and 26%, respectively, the latter reflecting lower operating leverage.
Significant Activities for the first 9 months of 2009
- Industrial Estate Sales were net 74 rai with 13 contracts, 10 new customers and 3 project expansions from existing customers. Total industrial customers are now 404 distinct new customers with 597 contracts and 135 automotive customers.
- Hemaraj jointly invested with Glow in Houay Ho Power, (Hemaraj’s effective shareholding 12.75%, USD 7.74 million) a company operating a 152 Megawatt Hydro Power Plant in Laos selling electricity to EGAT.
Balance Sheet Highlights at 30th September 2009
At 30th September 2009 Hemaraj reported Total Assets of Baht 13,445 million, Total Liabilities of Baht 5,144 million and Total Shareholders Equity of Baht 8,301 million. The Net Debt to Equity ratio remained low at 0.54 to 1. Cash on Hand was Baht 667 million and Cash Deposit for Power Project was Baht 2,060 million.
Quarter 3’2009 and 9 months of 2009 Net Income
For Quarter 3’2009, Hemaraj reported Total Net Income of Baht 75.6 million, or a decrease of 81% compared with the same period last year. Earnings per-share was 0.008 Baht per share, representing a decrease of 81% from the same period of last year.
For the first 9 months of 2009, Hemaraj reported Total Net Income of Baht 422.9 million, or a decrease of Baht 842.7 million or 67% compared with the same period of 2008. The decrease of Net Income from Operating Business for Quarter 3’2009 and the first 9 months of 2009 was mainly due to lower industrial land sales and no property sales compared to the same period of the prior year. Earnings per-share was 0.045 Baht per share, representing a decrease of 67% from the same period of last year.
David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.
“Total Revenue of Baht 1,723 million for the first 9 months of 2009 represents a decrease of 59% from last year. Hemaraj Total Net Income was Baht 423 million for the same period.
All things considered, the first nine months of 2009 has shown reasonable performance in coping with the severe international and local conditions while benefiting from increasing broad recurring revenue. We continued to be profitable with a strong balance sheet for future positioning.
As noted at year-end 2008 and the first half of 2009, global economic conditions led to a dramatic collapse in durable goods consumption. Subsequent reductions in production levels to reduce inventory reflecting lower demand have now stabilized. Thailand is starting to return to more normal run rate levels of production particularly for petrochemicals with increases in purchasing and other durable goods leading indicators.
The investment in Hemaraj’s business model will remain attractive. Thailand has in the past provided an improving investment climate and predictable rules of law enforcement. However, there are current environmental concerns where investors have complied with the rules and laws in place and are seeking the government resolve for the protection of their rights and investment.
The opportunity remains for Thailand to benefit from the investment relocation and expansion of production to strategic locations based on cost currency and market access. Industrial cluster opportunities will continue for automotive, petrochemical, and other industrial sectors long term, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard and Hemaraj’s petrochemical cluster in MapTaPhut, Rayong.
Hemaraj has 77% lower revenue from industrial estate sales for the first nine months of 2009. Encouragingly we have seen a 26% growth in Utilities revenue and an 11% growth in Rental
Property revenue year to date. Our broadened recurring revenue strategy and a strong balance sheet shielded market disruption while recovering to a normal level continues.
We further continued our investment in the Gheco-One IPP power project, being on schedule.
The Hemaraj business and financial plans reflect current conditions as well as opportunities in order to optimize predictable returns to shareholders. We are cautious of economic political and market risks and appreciate the appropriate responsibility entrusted to us.”
Revenue and Results of Operations for 9 Months of 2009
For the first 9 months of 2009, Hemaraj’s Total Revenue was Baht 1,723.0 million compared with Baht 4,181.9 million for the same period of 2008, representing a 59% decrease. Total Operating Revenue from core businesses was Baht 1,738.0 million, a 56% decrease from the same period of 2008. Industrial Estate Land Sales for the first 9 months of 2009 including Profit from Associated Industrial Estate were Baht 563.6 million, or a 77% decrease. There is an additional Baht 762 million in deferred revenue from Industrial Estate Land Sales not recognized to date, based on the percent completion method from 3 industrial estate new phase developments and representing sales that will be recognized primarily over the next 3 to 18 months.
Total Utilities Revenue including industrial estate utilities, profit dividend from power utilities associates, and other utilities and services fees increased to Baht 809.4 million, an increase of 26%. Total Rental Revenue including SME factory rental, pipe-rack rental, and commercial office rental increased to Baht 391.2 million, an increase of 11%. There was no Sale of Property including SME factory sales, residential sales and other land/property for 2009 to date.
The Gross Profit was Baht 755.5 million, a 54% decrease from the same period of last year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 446.0 million, a decrease of 66%. The Gross Profit Margin and EBITDA Margin were 46% and 26%, respectively, the latter reflecting lower operating leverage.
Significant Activities for the first 9 months of 2009
- Industrial Estate Sales were net 74 rai with 13 contracts, 10 new customers and 3 project expansions from existing customers. Total industrial customers are now 404 distinct new customers with 597 contracts and 135 automotive customers.
- Hemaraj jointly invested with Glow in Houay Ho Power, (Hemaraj’s effective shareholding 12.75%, USD 7.74 million) a company operating a 152 Megawatt Hydro Power Plant in Laos selling electricity to EGAT.
Balance Sheet Highlights at 30th September 2009
At 30th September 2009 Hemaraj reported Total Assets of Baht 13,445 million, Total Liabilities of Baht 5,144 million and Total Shareholders Equity of Baht 8,301 million. The Net Debt to Equity ratio remained low at 0.54 to 1. Cash on Hand was Baht 667 million and Cash Deposit for Power Project was Baht 2,060 million.
Thursday, November 12, 2009
BANPU SETS BT15.5-BN INVESTMENT PLAN FOR THE NEXT SIX YEARS
Banpu has set an ambitious US$466 million (Bt15.8 billion) investment plan over six years from 2010-2015 to cope with increasing demand for coal and power.
The International Energy Agency forecasts Asean's energy consumption rising 2.1 per cent a year until 2030. Energy consumed by the 10 country members of Asean may increase by 76 per cent from 2007 to 2030 because of economic expansion. Investment in the sector would be $390 billion higher than the reference case.
Banpu CEO Chanin Vongkusolkit said yesterday that the coal mining business has room to grow for at least for 10-20 years. The six-year investment plan covers coalmines in Indonesia worth $190 million, coalmine expansion in China worth $22 million and the Hong Sa hydropower project in Laos, which is expected to begin operations in 2015.
The coalmining business is now in focus again, thanks to high demand in 10-20 years, and the company might spend more on improving human resources and technology to prepare for the coal business, he said. Coal sales could rise to 33.5 million tonnes in 2015 from 23.3 million tonnes at present.
Banpu expects the coal price next year to decline to $60 per tonne from $71-72 this year, but it may consider selling premium coal next year to boost its average coal price to above $70.
Under the investment plan, the power business should generate 10-15 per cent of total sales in 2015 from the current level of 30 per cent. Early this year, Chanin said the company is bidding on three to four power plants and two to three coalmines. Those projects are excluded from the six-year investment plan.
Banpu posted consolidated third-quarter net profit of Bt3.8 billion, an increase of 22 per cent from Bt3.11 billion the year before. Earnings were boosted by higher coal sales from Indonesian coalmines and a gain from financial derivatives, mostly coal swaps.
"Coal sales volumes in the third quarter were 5.31 million tonnes, an increase of 15 per cent from the same period last year and 18 per cent from the previous quarter, thanks to higher coal sales volumes from Indonesian coal mines.
"In addition to higher quantity of coal sales, financial derivatives especially from coal swaps have helped lift the net profit of the third quarter," he said.
Revenue and profit this quarter would drop from last quarter due to a decline in coal prices in Indonesia and the shutdown of the BLCP power plant for maintenance, as well as reduced coal production in China, he said.
Banpu targets revenue this year at Bt57 billion, up from Bt56.83 billion last year.
Banpu's stock price closed yesterday at Bt462, up 3.12 per cent from Tuesday. Most of the 13 energy stocks posted increases in third-quarter net profits. Their combined net profit was Bt39.57 billion, up 53.36 per cent from Bt25.80 billion in the same period last year.
PTT, the largest energy firm, and its subsidiaries also saw bigger net profits. Bangchak recorded the highest profit growth - 956 per cent to Bt2.15 billion from a loss of Bt251 million - followed by IRPC with 151.90 per cent to Bt2.29 billion from a loss of Bt4.43 billion.
Ratchaburi Electricity Generating Holding posted the lowest growth at 20.19 per cent to Bt1.65 billion from Bt2.07 billion last year.
The International Energy Agency forecasts Asean's energy consumption rising 2.1 per cent a year until 2030. Energy consumed by the 10 country members of Asean may increase by 76 per cent from 2007 to 2030 because of economic expansion. Investment in the sector would be $390 billion higher than the reference case.
Banpu CEO Chanin Vongkusolkit said yesterday that the coal mining business has room to grow for at least for 10-20 years. The six-year investment plan covers coalmines in Indonesia worth $190 million, coalmine expansion in China worth $22 million and the Hong Sa hydropower project in Laos, which is expected to begin operations in 2015.
The coalmining business is now in focus again, thanks to high demand in 10-20 years, and the company might spend more on improving human resources and technology to prepare for the coal business, he said. Coal sales could rise to 33.5 million tonnes in 2015 from 23.3 million tonnes at present.
Banpu expects the coal price next year to decline to $60 per tonne from $71-72 this year, but it may consider selling premium coal next year to boost its average coal price to above $70.
Under the investment plan, the power business should generate 10-15 per cent of total sales in 2015 from the current level of 30 per cent. Early this year, Chanin said the company is bidding on three to four power plants and two to three coalmines. Those projects are excluded from the six-year investment plan.
Banpu posted consolidated third-quarter net profit of Bt3.8 billion, an increase of 22 per cent from Bt3.11 billion the year before. Earnings were boosted by higher coal sales from Indonesian coalmines and a gain from financial derivatives, mostly coal swaps.
"Coal sales volumes in the third quarter were 5.31 million tonnes, an increase of 15 per cent from the same period last year and 18 per cent from the previous quarter, thanks to higher coal sales volumes from Indonesian coal mines.
"In addition to higher quantity of coal sales, financial derivatives especially from coal swaps have helped lift the net profit of the third quarter," he said.
Revenue and profit this quarter would drop from last quarter due to a decline in coal prices in Indonesia and the shutdown of the BLCP power plant for maintenance, as well as reduced coal production in China, he said.
Banpu targets revenue this year at Bt57 billion, up from Bt56.83 billion last year.
Banpu's stock price closed yesterday at Bt462, up 3.12 per cent from Tuesday. Most of the 13 energy stocks posted increases in third-quarter net profits. Their combined net profit was Bt39.57 billion, up 53.36 per cent from Bt25.80 billion in the same period last year.
PTT, the largest energy firm, and its subsidiaries also saw bigger net profits. Bangchak recorded the highest profit growth - 956 per cent to Bt2.15 billion from a loss of Bt251 million - followed by IRPC with 151.90 per cent to Bt2.29 billion from a loss of Bt4.43 billion.
Ratchaburi Electricity Generating Holding posted the lowest growth at 20.19 per cent to Bt1.65 billion from Bt2.07 billion last year.
Sunday, November 8, 2009
SCREEN PRINTERS AIM TO ENHANCE TECHNOLOGY
The screen-printing industry plans to spend Bt600 million from the government's "Creative Economy" budget on enhancing its technology and expanding the market in a bid to achieve regional-hub status in the next five years.
Pirach Thampipit, president of Thai Screen Printing and Graphic Imaging Association, said the sector was a genuinely creative industry which adds high value to another 18 industries, including textiles, ceramics, gifts, toys, advertising billboards, automotive and electronics.
"Say you buy a Bt100 T-shirt and pay Bt10 for screen printing, then you sell it for Bt250. This is an easy demonstration that although the direct value of screen printing is about Bt10 billion, it can create indirect value to the country of more than Bt100 billion each year," he said.
Under the plan, he said the industry would spend the approved budget on developing know-how and technology among local manufacturers, whose current technology follows that used in Japan and South Korea.
One of the big difficulties in promoting local screen printing is that Thailand has none of its own global-brand products, he added.
"Japan has Toyota and Korea has Samsung, companies which encourage their small and medium-sized enterprises to conduct research and improve their competency. But we have none. That's why we asked for the budget to do our own research and position ourselves as the best original-equipment manufacturers in the screen-printing industry instead," he added.
Pirach said the association would cooperate with seven industries in developing printing to match demand. The selected industries are toys, gifts, advertisements, ceramics, textiles, handmade products and stationery.
The implementation of the Asean Free Trade Agreement next year will be an opportunity for Thai manufacturers to expand their business in other countries with cheaper costs and to enlarge their customer base in the region.
He said Thailand had been listed in the top four for screen printing in Southeast Asia, the other three countries being Indonesia, Vietnam, and the Philippines.
"We've just created the world's first-ever standard for screen printing. This will be an important step to push forward development in our industry, as it will make our people more enthusiastic about improving their production quality," he said.
He added that the association was cooperating with the Thai Industrial Standards Institute to set up a TISI standard for the screen-printing industry.
Pirach Thampipit, president of Thai Screen Printing and Graphic Imaging Association, said the sector was a genuinely creative industry which adds high value to another 18 industries, including textiles, ceramics, gifts, toys, advertising billboards, automotive and electronics.
"Say you buy a Bt100 T-shirt and pay Bt10 for screen printing, then you sell it for Bt250. This is an easy demonstration that although the direct value of screen printing is about Bt10 billion, it can create indirect value to the country of more than Bt100 billion each year," he said.
Under the plan, he said the industry would spend the approved budget on developing know-how and technology among local manufacturers, whose current technology follows that used in Japan and South Korea.
One of the big difficulties in promoting local screen printing is that Thailand has none of its own global-brand products, he added.
"Japan has Toyota and Korea has Samsung, companies which encourage their small and medium-sized enterprises to conduct research and improve their competency. But we have none. That's why we asked for the budget to do our own research and position ourselves as the best original-equipment manufacturers in the screen-printing industry instead," he added.
Pirach said the association would cooperate with seven industries in developing printing to match demand. The selected industries are toys, gifts, advertisements, ceramics, textiles, handmade products and stationery.
The implementation of the Asean Free Trade Agreement next year will be an opportunity for Thai manufacturers to expand their business in other countries with cheaper costs and to enlarge their customer base in the region.
He said Thailand had been listed in the top four for screen printing in Southeast Asia, the other three countries being Indonesia, Vietnam, and the Philippines.
"We've just created the world's first-ever standard for screen printing. This will be an important step to push forward development in our industry, as it will make our people more enthusiastic about improving their production quality," he said.
He added that the association was cooperating with the Thai Industrial Standards Institute to set up a TISI standard for the screen-printing industry.
Wednesday, November 4, 2009
STRIKING AN ACCEPTABLE BALANCE
Iknow Barack Hussein Obama is famous, but I never realised he's that famous until I saw some of my childhood friends sipping from a bottle of imported Fiji water and doing something quite bizarre debating whether the US president deserves to be the latest recipient of the Nobel Peace Prize.Prize winner has made the general public more aware of the prestigious award. For me, however, something more important has emerged from the list of this year's Nobel prize awardees, something global that is directly related to our local situation. I am talking about the first woman to ever receive the Nobel Prize for Economics, Elinor Ostrom, a US professor at Indiana University who is actively involved in research on the use and conservation of common property and natural resources.
Ms Ostrom's research interests focus on whether it is better for the access to common property like land and natural resources to be determined by end-users, not by government authorities or the private sector. Her work,according to the Nobel Prize jury, challenges the notion that common property is poorly managed and should be either regulated by central authorities or privatised.
To me, her work lends weight to the merit of our constitutions - both the already-scrapped 1997 charter and the latest coup-sponsored 2007 version. In articles 56,57 and 58 of the previous charter, and article 67 of the present charter, the right of local people to have a say and to participate in the usage of common property and natural resources is endorsed as a constitutional right.Over the past 10 years, local people - mostly opponents of mega industrial projects or victims of pollutiongenerating industrial projects - have cited these articles in demanding their rights to reclaim their right to use and/or manage common properties. That may explain why we are witnessing a greater number of local villagers protesting against industrial projects that, for them, might damage common property and natural resources like land, water, soil and air - all of which they heavily rely on as sources of their livelihoods. We will continue to see more of these lawsuits by local villagers opposed to the state and private sectors in the wake of their rising awareness of their right to protect their common resources.
The latest incident involves the village people in Map Ta Phut, who successfully cited Article 67 in the 2007 Constitution to ask the Administrative Court to declare their communities environmentally protected zones.
When the Administrative Court ordered 76 industrial projects to be put on hold, the private sector and some economists loudly lamented that the halt would lead to the disappearance of about 400 billion baht, a 0.4%reduction in the GDP and the loss of 100,000 jobs.
I will not argue these figures, and I am certain that these claims must be partially true.
On the other hand, local residents and environmentalists have long spoken out against industrial pollution, which severely affects villagers' health through rising rates of cancer and respiratory diseases, as well as the loss of economic opportunities due to the degradation of land,soil, water and air. They also voiced their distress over the destruction of coastal areas, over the loss of vital farmland,and over what the fishery and tourism businesses must sacrifice for the sake of heavy industry.
I believe their arguments are also at least partially true.Personally, I think local economists did not pay much attention to the hidden costs of items like increased health care charges caused by pollution, a drop in tourism revenues due to unsightly seashores, the high cost of cleaning up the pollution from industrial waste, and the elimination of labour-intensive agriculture when fertile land is expropriated or converted for industrial purposes.
Chartchai Parasuk, a former economist at the International Monetary Fund (IMF) and the Thailand Development Research Institute (TDRI) and now managing director of Thanachart Life Assurance, wrote a very interesting commentary in his weekly column in the Oct 16 edition of Post Today ,the Bangkok Post's Thai-language sister newspaper:
"Amid the case surrounding the Map Ta Phut Industrial Estate, I am quite dismayed that our economists cannot find the optimal point between economic growth and environmental quality. All they can offer is the quantum of the SEARCHER: Chartchai adverse effects on the GDP and Parasuk.economic growth. If they are really good, they should move to live in the Map Ta Phut area to weigh the cost of a reduction in the GDP against the result of inhaling pollution into their bodies."
Mr Chartchai had an interesting view on the subject of economics.
"It seems [economics] is incapable of appraising the value of happiness of people.
"That assumption is wrong. Economists can, and must,find the optimal point [between economic growth and the cost of related environmental factors]. Indeed, it is the duty of economists to find the true price of the effects and let the economic system work on that basis."
Twenty years ago, Mr Chartchai, during his time working at TDRI, undertook research that appraised the value of economic growth versus deforestation - a rather new concept at that time. His work attempted to find the value of trees.
"Commercial logging has a certain economic value.This should be good for economic growth. Yet deforestation leads to floods, which impact badly on farming activities.So, my research aimed at finding the optimal point."
He also challenged local economists to find the optimal benefit from economic growth from industry against the cost of environmental damage.
In his opinion, economists can help to solve the dilemma the country is facing as manifested in the rising opposition against industry.
"If we leave it to politicians, investors, villagers and NGO (non-governmental organisation) activists to try to find their own equilibrium, we will not be able to resolve this conflict. We must pressure economists to come out and do research on where the optimal point is and how to achieve it."
Ms Ostrom's research interests focus on whether it is better for the access to common property like land and natural resources to be determined by end-users, not by government authorities or the private sector. Her work,according to the Nobel Prize jury, challenges the notion that common property is poorly managed and should be either regulated by central authorities or privatised.
To me, her work lends weight to the merit of our constitutions - both the already-scrapped 1997 charter and the latest coup-sponsored 2007 version. In articles 56,57 and 58 of the previous charter, and article 67 of the present charter, the right of local people to have a say and to participate in the usage of common property and natural resources is endorsed as a constitutional right.Over the past 10 years, local people - mostly opponents of mega industrial projects or victims of pollutiongenerating industrial projects - have cited these articles in demanding their rights to reclaim their right to use and/or manage common properties. That may explain why we are witnessing a greater number of local villagers protesting against industrial projects that, for them, might damage common property and natural resources like land, water, soil and air - all of which they heavily rely on as sources of their livelihoods. We will continue to see more of these lawsuits by local villagers opposed to the state and private sectors in the wake of their rising awareness of their right to protect their common resources.
The latest incident involves the village people in Map Ta Phut, who successfully cited Article 67 in the 2007 Constitution to ask the Administrative Court to declare their communities environmentally protected zones.
When the Administrative Court ordered 76 industrial projects to be put on hold, the private sector and some economists loudly lamented that the halt would lead to the disappearance of about 400 billion baht, a 0.4%reduction in the GDP and the loss of 100,000 jobs.
I will not argue these figures, and I am certain that these claims must be partially true.
On the other hand, local residents and environmentalists have long spoken out against industrial pollution, which severely affects villagers' health through rising rates of cancer and respiratory diseases, as well as the loss of economic opportunities due to the degradation of land,soil, water and air. They also voiced their distress over the destruction of coastal areas, over the loss of vital farmland,and over what the fishery and tourism businesses must sacrifice for the sake of heavy industry.
I believe their arguments are also at least partially true.Personally, I think local economists did not pay much attention to the hidden costs of items like increased health care charges caused by pollution, a drop in tourism revenues due to unsightly seashores, the high cost of cleaning up the pollution from industrial waste, and the elimination of labour-intensive agriculture when fertile land is expropriated or converted for industrial purposes.
Chartchai Parasuk, a former economist at the International Monetary Fund (IMF) and the Thailand Development Research Institute (TDRI) and now managing director of Thanachart Life Assurance, wrote a very interesting commentary in his weekly column in the Oct 16 edition of Post Today ,the Bangkok Post's Thai-language sister newspaper:
"Amid the case surrounding the Map Ta Phut Industrial Estate, I am quite dismayed that our economists cannot find the optimal point between economic growth and environmental quality. All they can offer is the quantum of the SEARCHER: Chartchai adverse effects on the GDP and Parasuk.economic growth. If they are really good, they should move to live in the Map Ta Phut area to weigh the cost of a reduction in the GDP against the result of inhaling pollution into their bodies."
Mr Chartchai had an interesting view on the subject of economics.
"It seems [economics] is incapable of appraising the value of happiness of people.
"That assumption is wrong. Economists can, and must,find the optimal point [between economic growth and the cost of related environmental factors]. Indeed, it is the duty of economists to find the true price of the effects and let the economic system work on that basis."
Twenty years ago, Mr Chartchai, during his time working at TDRI, undertook research that appraised the value of economic growth versus deforestation - a rather new concept at that time. His work attempted to find the value of trees.
"Commercial logging has a certain economic value.This should be good for economic growth. Yet deforestation leads to floods, which impact badly on farming activities.So, my research aimed at finding the optimal point."
He also challenged local economists to find the optimal benefit from economic growth from industry against the cost of environmental damage.
In his opinion, economists can help to solve the dilemma the country is facing as manifested in the rising opposition against industry.
"If we leave it to politicians, investors, villagers and NGO (non-governmental organisation) activists to try to find their own equilibrium, we will not be able to resolve this conflict. We must pressure economists to come out and do research on where the optimal point is and how to achieve it."
The long march for environmental justice
Residents in the shadows of industrial estates in Rayong province have taken to the highway to try to get their message out ahead of a court decision which could shut many factories down permanently Some portions of the road from Rayong city to Bangkok are rugged and dusty, and many big trucks hurry by, but Jareon Dejkum was determined to continue walking to draw attention to the plight of villagers living near industrial estates in Rayong province.
"We don't have many outlets to express our bitterness. We will we die at home or on the street - there's little difference - but we want the government to know that it needs to listen to the ruling of the Central Administrative Court [CAC]," he said, referring to the court's order on Sept 29 to suspend 76 projects in Rayong province. The court will consider whether their permits violate Section 67 of the Constitution (see box). The protesters carried with them a petition to hand to government leaders in Bangkok.
This is not the first time that Mr Jareon has taken to the street to vent his frustrations. He has been protesting since the early days of industrial development in the province. This time he joined about 100 others on a long march dubbed "Follow Father's footsteps in search of self-sufficiency" organised by the People's Eastern Network (PEN). The marchers left Rayong on Oct 24.
Jareon and many fellow Rayong natives first protested against the establishment of the Map Ta Phut Industrial Estate when the Industrial Estate Authority of Thailand (IEAT) started its land acquisition scheme in 1987.
"A Rayong governor at that time came to negotiate with us and told us that he would try his best to prevent adverse impacts. But in the end he left Rayong and we were left to fend for ourselves," said the orchard owner. Many locals were forced to sell their land at very low prices from - 5,000 to 15,000 baht a rai.
WAITING FOR JUSTICE: Noi Jaitang wants his family and neighbours to be able to live in a clean and peaceful village again.
As the factories and designated industrial estates in the province have increased year by year, locals say they are suffering, and the adverse social and environmental impacts which fall on them are clear for all to see.
According to IEAT figures, there are eight industrial parks containing 426 factories in Rayong province alone. The Map Ta Phut estate has 64 factories, and there are a total of 198 factories on the Eastern Seaboard.
Over the years the locals' reports of specific environmental abuses have mounted, including chemical leaks. In one well-publicised case, toxic fumes caused the relocation of Map Ta Phut Phan Wittayakarn school in 1997 to a site far from the industrial estate.
Meanwhile, operators and investors in the industrial estates maintain that they have obtained the required government approval for their environmental impact assessments (EIAs) and are following all environmental rules and regulations.
"I have only a rudimentary education, how can I argue with these people, I have only the truth," said Mr Jareon.
To many it may seem that the 67-year old man is fighting a losing battle, and he admits that he sometimes feels it is hopeless to take on both the industries and the government in his quest for environmental justice.
Yet he and others affected by the industrial development that sprang up around them almost overnight continue to protest, submit petitions and negotiate with concerned government agencies, as they have done for the past 20 years without much result - until the CAC decision in late September.
NOT IN MY BACKYARD: Waste from a coal-fired power plant supplying the industrial estate dumped in residential area.
GDP VS SUSTAINABILITY
Protesting locals say the government is concerned only about economic growth as measured by GDP (Gross Domestic Product), at the expense of sustainability, a view shared by a number of academics and environmentalists.
''Does the government understand His Majesty the King's self-sufficiency economy?'' asked Mr Jareon as he wiped sweat from his face with a work-roughened hand.
The PEN chose to embark on their long march because they they wish to highlight their plight in the run-up to a final court decision on the fate of industrial estates in Rayong.
On March 3 this year the Rayong Provincial Administrative Court ordered the National Environmental Board (NEB) to declare an area which includes six sub-districts in Muang and Ban Chang districts of Rayong a pollution control zone. The decision was based on health and pollution reports by independent academics suggesting residents' health was at risk from pollution from factories and industrial-related activities.
Estate operators were quick to say that the declaration of the pollution control zone would affect their investments of approximately 200 billion baht. The government has asked the Council of State to interpret Section 67 of the 2007 Constitution.
In July, the Council of State ruled that the existing BE 2535 (1992) Environmental Act is sufficient to tackle the problems at Map Ta Phut. The ruling reads that when there is no organic law to stipulate the procedures to set up the independent agency described in Section 67 of the Constitution, presently functioning agencies can consider granting projects approval if they have environmental and health impact assessments. The Council of State sub-committee only consulted with agencies that advocate investment, such as the IEAT, without inviting local participation.
It should be noted that three members of the Council of State's Commercial and Industrial Sub-committee are also on the board of the Petroleum Authority of Thailand Chemical Company (PTTCH), a company heavily invested in the Map Ta Phut industrial estate, as shown by a document obtained from the Stock Exchange of Thailand dated June 23, 2008.
The protesters point out that the constitution is supposed to be the highest law of the land, and question why the 1992 Environmental Act should play a bigger role.
Suthi Atchasai, the leader of the PEN, said: ''People affected from the industrial operations and mega-development projects are aware how the EIAs were conducted. Concerned government agencies shouldn't be too naive.'' He asked if any of the EIAs had been denied, and questioned the reliability of the consultants hired by the industries to conduct the EIAs.
The Sept 29 CAC order, which suspends 76 projects in Rayong province, exempts projects that were approved before the promulgation of the 2007 Constitution.
UNHEALTHY EYESORE: Locals and officials look over toxic garbage carelessly dumped on private land in Map Kha village, adjacent to Map Ta Phut industrial Estate.
Many government officials are backing industrial operators in their assertions that the CAC ruling is having a devastating effect on the business climate in the country. PTT Plc, the country's largest energy conglomerate, has cited potential revenue losses of 262 billion baht per year due to delays in completing its 25 ongoing projects in Map Ta Phut.
Meanwhile, Prime Minister Abhisit Vejjajiva has said that the government wants to continue investment projects in a way that has a minimal impact on local people and the environment, a sort of ''eco-industrial zone''.
But Sinchao Sawadlon, a farmer from Tapong near Map Ta Phut, asked incredulously: ''How could that be, an eco-industrial zone? My dear PM, come to stay with us and you will know what these companies get away with when they 'comply with the law'''. He added that the proffered government solution is always to set up tripartite committee which never function.
The feeling that there is no one in the government to take their side is what brought locals back to the protest route.
"THE ESTATES CAME TO US"
Among the marchers is Noi Jaitang, who lives near Map Ta Phut industrial estate and has lost six family members to cancer. Presently, his wife has also been diagnosed with cancer. Few if any physicians are willing to attribute the high incidence of cancer in the population to proximity to industrial estates, but many locals have no such reservations.
''Rayong is my hometown. We didn't choose to live by an industrial estate, but the estates have come to us, said Mr Noi. He would like to live peacefully on his small plot of land, but he feels he must tell the public about the consequences of industrial development.
WEAPONS OF THE WEAK: Members of the People’s Eastern Network are on the march to air their grievances and inform the public about their problems with pollution,
''Nobody admits to doing any wrong, but why are people in our area getting sick, especially with cancer?'' he asked.
Mr Noi's feet were swollen from all the walking, but he discounted his troubles. ''My feet are alright, but look at Suthi's feet, they are more seriously injured,'' he said. Mr Noi and many senior protest figures are clearly happy to have younger people like Mr Suthi in their movement.
The afternoon sun was very strong, and after four days of walking from Rayong to Samut Prakan, another farmer, Watchara Thongtarat, almost collapsed. He decided to get into a car driven by one of the marchers'' supporters.
''I want to continue walking, but I think I would bring trouble to my friends if I got sick today,'' said the 70-year-old orchard owner. He said his village, located next to the IRPC industrial estate ''has been changing'' _ the temperature is higher, and the water has become toxic. What's more, the trees no longer yield quality fruit.
''It rains less and less, everything has changed,'' he complained, adding that he could not sit still and see this happen to his family and neighbours.
He said some people who come from outside Rayong might be happy with the industrial estate, as they are only interested in jobs. ''But if they consider their health in the long run, will their present earnings be enough for them to look after themselves in the future?'' he asked.
Along the road, some of the PEN members were trying to distribute leaflets to inform the public about the issue.
At the end of the fourth day of walking the marchers got an invitation from an allied group in Bang Bor in Samut Prakan province to stay at a local temple.
While having dinner at the temple, Rampai Silaraeng said that understanding each other's limitations is the way to keep the movement going. She also said it is hard to mobilise young people to join the long march.
''Many of us are still have to earn a living, and many others are too weak to join the movement.'' She added cryptically: ''It is hard to point out who makes us vulnerable physically and mentally, but we are clear about who is pushing us to the edge.''
Among the younger demonstrators are former workers in Map Ta Phut's factories. Ms Ann (not her real name) is a former petro-chemical engineer and a native of Rayong who had an accident on the job and quit. She confirmed that there are many toxic substances in the industrial conglomeration, but although workers do get some protections, the toxicity spreads to the environment.
Mrs Rampai and Ms Ann are happy when people along their route take the time to give them moral support. ''In Nong Mol
[Chon Buri province], many vendors gave us sweets and food, and some temples are so kind _ they give us food and a place to stay and even contribute funds for our struggle,'' Mrs Rampai said.
On the evening of Oct 27 in Bang Bor after dinner the marchers sang songs and discussed what they would do when they arrive at the Government House. They chatted about a number of things. Arom Sodmanee got a call from her community leader, who was invited by a big company in the industrial estate for a leisure tour in Cha-am, in Petchaburi province.
Ms Arom turned on the speaker of her mobile phone and we heard the community leader describe how the company had tried to buy him off, as well as others from around Map Ta Phut.
''Divide and conquer,'' said Ms Arom, shaking her head.
The next day, they woke up early and came to the decision to end the march and finish the journey to Government House by pick-up trucks and hired vans. There they tried to submit their petition, but no one came out to receive it.
Later they moved on to the Parliament building, where they were given a chance to submit the petition to senators. In the afternoon, Deputy Prime Ministry Kobsak Sabhavasu agreed to meet with them and chaired the meeting himself.
After the meeting Mr Jareon said he did not believe the government is acting in good faith.
''I have to say that it is again just promises,'' said Mr Jareon.
''Holding meetings and setting up committees are just techniques to buy time and prolong our suffering.2007 CONSTITUTION, SECTION 67: ITS INTERPRETATION MAY DETERMINE CENTRAL ADMINSTRATIVE COURT RULING
The right of a person to participate with State and communities in the preservation and exploitation of natural resources and biological diversity and in the protection, promotion and conservation of the quality of the environment for usual and consistent survival in an environment which is not hazardous to his/her health and sanitary conditions, welfare or quality of life, shall be protected appropriately.
Any project or activity which may seriously affect the quality of the environment, natural resources and biological diversity shall not be permitted, unless its impacts on the quality of the environment and on health of the people in the communities have been studied and evaluated and consultation with the public and interested parties have been organised, and opinions of an independent organisation, consisting of representatives from private environmental and health organisations and from higher education institutions providing studies in the field of environment, natural resources or health, have been obtained prior to the operation of such project or activity.
The right of a community to sue a government agency, State agency, State enterprise, local government organisation or other State authority which is a juristic person to perform the duties under this section shall be protected.
(Unofficial translation)
TROUBLE IN THE AIR: Industrial estate operators insist they have followed all environmental regulations, but locals point to the smoke from some projects.
"We don't have many outlets to express our bitterness. We will we die at home or on the street - there's little difference - but we want the government to know that it needs to listen to the ruling of the Central Administrative Court [CAC]," he said, referring to the court's order on Sept 29 to suspend 76 projects in Rayong province. The court will consider whether their permits violate Section 67 of the Constitution (see box). The protesters carried with them a petition to hand to government leaders in Bangkok.
This is not the first time that Mr Jareon has taken to the street to vent his frustrations. He has been protesting since the early days of industrial development in the province. This time he joined about 100 others on a long march dubbed "Follow Father's footsteps in search of self-sufficiency" organised by the People's Eastern Network (PEN). The marchers left Rayong on Oct 24.
Jareon and many fellow Rayong natives first protested against the establishment of the Map Ta Phut Industrial Estate when the Industrial Estate Authority of Thailand (IEAT) started its land acquisition scheme in 1987.
"A Rayong governor at that time came to negotiate with us and told us that he would try his best to prevent adverse impacts. But in the end he left Rayong and we were left to fend for ourselves," said the orchard owner. Many locals were forced to sell their land at very low prices from - 5,000 to 15,000 baht a rai.
WAITING FOR JUSTICE: Noi Jaitang wants his family and neighbours to be able to live in a clean and peaceful village again.
As the factories and designated industrial estates in the province have increased year by year, locals say they are suffering, and the adverse social and environmental impacts which fall on them are clear for all to see.
According to IEAT figures, there are eight industrial parks containing 426 factories in Rayong province alone. The Map Ta Phut estate has 64 factories, and there are a total of 198 factories on the Eastern Seaboard.
Over the years the locals' reports of specific environmental abuses have mounted, including chemical leaks. In one well-publicised case, toxic fumes caused the relocation of Map Ta Phut Phan Wittayakarn school in 1997 to a site far from the industrial estate.
Meanwhile, operators and investors in the industrial estates maintain that they have obtained the required government approval for their environmental impact assessments (EIAs) and are following all environmental rules and regulations.
"I have only a rudimentary education, how can I argue with these people, I have only the truth," said Mr Jareon.
To many it may seem that the 67-year old man is fighting a losing battle, and he admits that he sometimes feels it is hopeless to take on both the industries and the government in his quest for environmental justice.
Yet he and others affected by the industrial development that sprang up around them almost overnight continue to protest, submit petitions and negotiate with concerned government agencies, as they have done for the past 20 years without much result - until the CAC decision in late September.
NOT IN MY BACKYARD: Waste from a coal-fired power plant supplying the industrial estate dumped in residential area.
GDP VS SUSTAINABILITY
Protesting locals say the government is concerned only about economic growth as measured by GDP (Gross Domestic Product), at the expense of sustainability, a view shared by a number of academics and environmentalists.
''Does the government understand His Majesty the King's self-sufficiency economy?'' asked Mr Jareon as he wiped sweat from his face with a work-roughened hand.
The PEN chose to embark on their long march because they they wish to highlight their plight in the run-up to a final court decision on the fate of industrial estates in Rayong.
On March 3 this year the Rayong Provincial Administrative Court ordered the National Environmental Board (NEB) to declare an area which includes six sub-districts in Muang and Ban Chang districts of Rayong a pollution control zone. The decision was based on health and pollution reports by independent academics suggesting residents' health was at risk from pollution from factories and industrial-related activities.
Estate operators were quick to say that the declaration of the pollution control zone would affect their investments of approximately 200 billion baht. The government has asked the Council of State to interpret Section 67 of the 2007 Constitution.
In July, the Council of State ruled that the existing BE 2535 (1992) Environmental Act is sufficient to tackle the problems at Map Ta Phut. The ruling reads that when there is no organic law to stipulate the procedures to set up the independent agency described in Section 67 of the Constitution, presently functioning agencies can consider granting projects approval if they have environmental and health impact assessments. The Council of State sub-committee only consulted with agencies that advocate investment, such as the IEAT, without inviting local participation.
It should be noted that three members of the Council of State's Commercial and Industrial Sub-committee are also on the board of the Petroleum Authority of Thailand Chemical Company (PTTCH), a company heavily invested in the Map Ta Phut industrial estate, as shown by a document obtained from the Stock Exchange of Thailand dated June 23, 2008.
The protesters point out that the constitution is supposed to be the highest law of the land, and question why the 1992 Environmental Act should play a bigger role.
Suthi Atchasai, the leader of the PEN, said: ''People affected from the industrial operations and mega-development projects are aware how the EIAs were conducted. Concerned government agencies shouldn't be too naive.'' He asked if any of the EIAs had been denied, and questioned the reliability of the consultants hired by the industries to conduct the EIAs.
The Sept 29 CAC order, which suspends 76 projects in Rayong province, exempts projects that were approved before the promulgation of the 2007 Constitution.
UNHEALTHY EYESORE: Locals and officials look over toxic garbage carelessly dumped on private land in Map Kha village, adjacent to Map Ta Phut industrial Estate.
Many government officials are backing industrial operators in their assertions that the CAC ruling is having a devastating effect on the business climate in the country. PTT Plc, the country's largest energy conglomerate, has cited potential revenue losses of 262 billion baht per year due to delays in completing its 25 ongoing projects in Map Ta Phut.
Meanwhile, Prime Minister Abhisit Vejjajiva has said that the government wants to continue investment projects in a way that has a minimal impact on local people and the environment, a sort of ''eco-industrial zone''.
But Sinchao Sawadlon, a farmer from Tapong near Map Ta Phut, asked incredulously: ''How could that be, an eco-industrial zone? My dear PM, come to stay with us and you will know what these companies get away with when they 'comply with the law'''. He added that the proffered government solution is always to set up tripartite committee which never function.
The feeling that there is no one in the government to take their side is what brought locals back to the protest route.
"THE ESTATES CAME TO US"
Among the marchers is Noi Jaitang, who lives near Map Ta Phut industrial estate and has lost six family members to cancer. Presently, his wife has also been diagnosed with cancer. Few if any physicians are willing to attribute the high incidence of cancer in the population to proximity to industrial estates, but many locals have no such reservations.
''Rayong is my hometown. We didn't choose to live by an industrial estate, but the estates have come to us, said Mr Noi. He would like to live peacefully on his small plot of land, but he feels he must tell the public about the consequences of industrial development.
WEAPONS OF THE WEAK: Members of the People’s Eastern Network are on the march to air their grievances and inform the public about their problems with pollution,
''Nobody admits to doing any wrong, but why are people in our area getting sick, especially with cancer?'' he asked.
Mr Noi's feet were swollen from all the walking, but he discounted his troubles. ''My feet are alright, but look at Suthi's feet, they are more seriously injured,'' he said. Mr Noi and many senior protest figures are clearly happy to have younger people like Mr Suthi in their movement.
The afternoon sun was very strong, and after four days of walking from Rayong to Samut Prakan, another farmer, Watchara Thongtarat, almost collapsed. He decided to get into a car driven by one of the marchers'' supporters.
''I want to continue walking, but I think I would bring trouble to my friends if I got sick today,'' said the 70-year-old orchard owner. He said his village, located next to the IRPC industrial estate ''has been changing'' _ the temperature is higher, and the water has become toxic. What's more, the trees no longer yield quality fruit.
''It rains less and less, everything has changed,'' he complained, adding that he could not sit still and see this happen to his family and neighbours.
He said some people who come from outside Rayong might be happy with the industrial estate, as they are only interested in jobs. ''But if they consider their health in the long run, will their present earnings be enough for them to look after themselves in the future?'' he asked.
Along the road, some of the PEN members were trying to distribute leaflets to inform the public about the issue.
At the end of the fourth day of walking the marchers got an invitation from an allied group in Bang Bor in Samut Prakan province to stay at a local temple.
While having dinner at the temple, Rampai Silaraeng said that understanding each other's limitations is the way to keep the movement going. She also said it is hard to mobilise young people to join the long march.
''Many of us are still have to earn a living, and many others are too weak to join the movement.'' She added cryptically: ''It is hard to point out who makes us vulnerable physically and mentally, but we are clear about who is pushing us to the edge.''
Among the younger demonstrators are former workers in Map Ta Phut's factories. Ms Ann (not her real name) is a former petro-chemical engineer and a native of Rayong who had an accident on the job and quit. She confirmed that there are many toxic substances in the industrial conglomeration, but although workers do get some protections, the toxicity spreads to the environment.
Mrs Rampai and Ms Ann are happy when people along their route take the time to give them moral support. ''In Nong Mol
[Chon Buri province], many vendors gave us sweets and food, and some temples are so kind _ they give us food and a place to stay and even contribute funds for our struggle,'' Mrs Rampai said.
On the evening of Oct 27 in Bang Bor after dinner the marchers sang songs and discussed what they would do when they arrive at the Government House. They chatted about a number of things. Arom Sodmanee got a call from her community leader, who was invited by a big company in the industrial estate for a leisure tour in Cha-am, in Petchaburi province.
Ms Arom turned on the speaker of her mobile phone and we heard the community leader describe how the company had tried to buy him off, as well as others from around Map Ta Phut.
''Divide and conquer,'' said Ms Arom, shaking her head.
The next day, they woke up early and came to the decision to end the march and finish the journey to Government House by pick-up trucks and hired vans. There they tried to submit their petition, but no one came out to receive it.
Later they moved on to the Parliament building, where they were given a chance to submit the petition to senators. In the afternoon, Deputy Prime Ministry Kobsak Sabhavasu agreed to meet with them and chaired the meeting himself.
After the meeting Mr Jareon said he did not believe the government is acting in good faith.
''I have to say that it is again just promises,'' said Mr Jareon.
''Holding meetings and setting up committees are just techniques to buy time and prolong our suffering.2007 CONSTITUTION, SECTION 67: ITS INTERPRETATION MAY DETERMINE CENTRAL ADMINSTRATIVE COURT RULING
The right of a person to participate with State and communities in the preservation and exploitation of natural resources and biological diversity and in the protection, promotion and conservation of the quality of the environment for usual and consistent survival in an environment which is not hazardous to his/her health and sanitary conditions, welfare or quality of life, shall be protected appropriately.
Any project or activity which may seriously affect the quality of the environment, natural resources and biological diversity shall not be permitted, unless its impacts on the quality of the environment and on health of the people in the communities have been studied and evaluated and consultation with the public and interested parties have been organised, and opinions of an independent organisation, consisting of representatives from private environmental and health organisations and from higher education institutions providing studies in the field of environment, natural resources or health, have been obtained prior to the operation of such project or activity.
The right of a community to sue a government agency, State agency, State enterprise, local government organisation or other State authority which is a juristic person to perform the duties under this section shall be protected.
(Unofficial translation)
TROUBLE IN THE AIR: Industrial estate operators insist they have followed all environmental regulations, but locals point to the smoke from some projects.
Wednesday, October 28, 2009
SICHUAN TENGZHONG BUYS 80% STAKE IN GM'S HUMMER UNIT
China's Sichuan Tengzhong Heavy Industrial Machinery agreed to buy the Hummer brand from General Motors, adding sport-utility vehicles to a porduct line-up that includes bridged parts and construction equipment.
Tengzhong will have an 80-per cent stake through an investment group with entrepreneur Suolang Duoji, who will hold the rest, according to a statement on GM's websiet.
The ales is worth US$150 million (Bt5 billion), people familiar with the deal said, about 70 per cent less than GM valued it in court.
Acquiring Hummer propels Chengdu, China-based Tengzhong, a privately owned idustrial manufacturer, into the passenger-vehicle industry.
Chief executive Yang Yi said he wants to grow the business beyond the US market, which accounts for about two-thirds of the brand's sales.
"We are really looking to expand our global reach to tackle some of the high-growth markets, particularly the China market, in which we expect to enjoy explosive growth," Yang said.
Disposing of Hummer is a victorry for GM in its post-bangruptcy restructuring after the sale of the Saturn unit to Penske Automotive Group fell through last week.
GM is shutting Saturn and Pontiac and is close to a deal with Sweden's Koenigsegg group to acquire the Saab brand.
Hummer plantsd to resume exports to China, Durope, the Middle East and Russia, CEO Jim Taylor said in an interview.
It will probably take five to six months to adapt vehicles to Chinese regulations before Hummer can export in any significant numbers, Taylor said.
"Tengzhong may not get a deal as good it appears to be, as there are a lot of questions to be answered, fro instance, we don't know much Tengzhong needs to pay for the use of Hummer's manufacturing technology and what other are srings attached. 'said Zhang Xin, a Beijing-based analyst at Guotai Junan Securities.
"Then there's the regulatory hurdle of getting the licence to import and sell the car in China."
Hummer will remain based in souteastern Michigan, starting with about 100 to 150 people. Taylor sais. The next step would be to hire about 200 engineers, he said.
The company plans to continue contracting with GM for vehicle procudtion from plants in Mishawaka, Indiana, and Shreveport, Louisiana, for two to three years.
Tengzhong will have an 80-per cent stake through an investment group with entrepreneur Suolang Duoji, who will hold the rest, according to a statement on GM's websiet.
The ales is worth US$150 million (Bt5 billion), people familiar with the deal said, about 70 per cent less than GM valued it in court.
Acquiring Hummer propels Chengdu, China-based Tengzhong, a privately owned idustrial manufacturer, into the passenger-vehicle industry.
Chief executive Yang Yi said he wants to grow the business beyond the US market, which accounts for about two-thirds of the brand's sales.
"We are really looking to expand our global reach to tackle some of the high-growth markets, particularly the China market, in which we expect to enjoy explosive growth," Yang said.
Disposing of Hummer is a victorry for GM in its post-bangruptcy restructuring after the sale of the Saturn unit to Penske Automotive Group fell through last week.
GM is shutting Saturn and Pontiac and is close to a deal with Sweden's Koenigsegg group to acquire the Saab brand.
Hummer plantsd to resume exports to China, Durope, the Middle East and Russia, CEO Jim Taylor said in an interview.
It will probably take five to six months to adapt vehicles to Chinese regulations before Hummer can export in any significant numbers, Taylor said.
"Tengzhong may not get a deal as good it appears to be, as there are a lot of questions to be answered, fro instance, we don't know much Tengzhong needs to pay for the use of Hummer's manufacturing technology and what other are srings attached. 'said Zhang Xin, a Beijing-based analyst at Guotai Junan Securities.
"Then there's the regulatory hurdle of getting the licence to import and sell the car in China."
Hummer will remain based in souteastern Michigan, starting with about 100 to 150 people. Taylor sais. The next step would be to hire about 200 engineers, he said.
The company plans to continue contracting with GM for vehicle procudtion from plants in Mishawaka, Indiana, and Shreveport, Louisiana, for two to three years.
CABINET TO MULL PROPOSAL ON ENVIRONMENT WATCHDOG
The Cabinet on Tuesday will consider a proposal to issue laws pursuant to Article 62 of the Constitution that will pave the way for the establishment of the independent environmental body to ease conflicts in the Map Ta Phut area.
A meeting chaired by Prime Minister Abhisit Vejjajiva and attended by eight government units charged with having violated the Constitution also agreed the National Environment Board should issue guidelines on environmental-impact assessments (EIAs) in line with Article 62.
With clear guidelines, investors will know how to obtain operating licences legally.
Abhisit said the draft laws should reach Parliament by the end of the month, while the guidelines should be completed within three weeks for the National Environmental Board's consideration.
He also told reporters that the private sector had proposed a Bt100-billion contingency fund for project owners, in view of potential lawsuits from contractors resulting from the suspension of 76 industrial projects in the Map Ta Phut area.
The size of any legal damages will be known after the ruling on the government's appeal against the court's injunction, as well as after the issuance of health impact assessment (HIA) guidelines under Article 62, he said.
He also said the local communities would be informed that some projects were intended to reduce pollution and that these should proceed as planned.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, said the contingencyfund proposal had been agreed by the FTI, the Board of Trade and the Thai Bankers' Association.
"The court's injunction [on Map Ta Phut projects] poses uncertainties over damages if the project delays continue. This fund will help those projects for which the owners have struck deals with contractors. If the construction is delayed due to the court order, contractors may file sutis," he said.
He also said the cases would be more complicated if commercial banks were to stop their credit lines, while private operators would be scrambling to find ways to finance debts if their investment were delayed or stopped altogether.
Some operators that issued bonds to finance the investments could also face rating downgrades and bond sell-offs.
It is not known whether the government would in those circumstances buy into the dumped bonds, he said.
The FTI chief said the owners of the 76 products affected by the Central Administrative Court's injunction concerning the Map Ta Phut area did not expect their plans to lead to any environmental damage and added that whether the proposed fund was disbursed depended on the court's final verdict.
Santi suggested the incorporation of HIAs into the EIAs process in order to shorten the filing period.
However, if the government wants to separate the two requirements, it should take into account the need for convenience on the part of private companies.
The University of the Thai Chamber of Commerce said the prolonged conflict over investment in Map Ta Phut could slow economic growth in the current quarter and next year.
Economic growth could be slashed by 0.5 percentage point in the current quarter, due to the disappearance of industrial investment worth between Bt10 billion and Bt20 billion.
If the injunction were in place for another six to 12 months, growth next year could drop by 0.5-1 percentage point, from a target of 2-3 per cent, the university said.
Chatree Charoensiri. deputy secretary of the National Health Commission Office of Thailand, yesterday said after the fifth and final public hearing on HIA guidelines that it was agreed all industrial projects with intense environmental impacts should strictly comply with the Constitution.
That is, they must complete the EIA and HIA process and win consent from local communities and the independent environmental body.
The HIA guidelines should also allow local communities to ask for a health-impact evaluation.
Attending yesterday's hearing were hundreds of representatives from the government sector, local communities and private companies.
A meeting chaired by Prime Minister Abhisit Vejjajiva and attended by eight government units charged with having violated the Constitution also agreed the National Environment Board should issue guidelines on environmental-impact assessments (EIAs) in line with Article 62.
With clear guidelines, investors will know how to obtain operating licences legally.
Abhisit said the draft laws should reach Parliament by the end of the month, while the guidelines should be completed within three weeks for the National Environmental Board's consideration.
He also told reporters that the private sector had proposed a Bt100-billion contingency fund for project owners, in view of potential lawsuits from contractors resulting from the suspension of 76 industrial projects in the Map Ta Phut area.
The size of any legal damages will be known after the ruling on the government's appeal against the court's injunction, as well as after the issuance of health impact assessment (HIA) guidelines under Article 62, he said.
He also said the local communities would be informed that some projects were intended to reduce pollution and that these should proceed as planned.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, said the contingencyfund proposal had been agreed by the FTI, the Board of Trade and the Thai Bankers' Association.
"The court's injunction [on Map Ta Phut projects] poses uncertainties over damages if the project delays continue. This fund will help those projects for which the owners have struck deals with contractors. If the construction is delayed due to the court order, contractors may file sutis," he said.
He also said the cases would be more complicated if commercial banks were to stop their credit lines, while private operators would be scrambling to find ways to finance debts if their investment were delayed or stopped altogether.
Some operators that issued bonds to finance the investments could also face rating downgrades and bond sell-offs.
It is not known whether the government would in those circumstances buy into the dumped bonds, he said.
The FTI chief said the owners of the 76 products affected by the Central Administrative Court's injunction concerning the Map Ta Phut area did not expect their plans to lead to any environmental damage and added that whether the proposed fund was disbursed depended on the court's final verdict.
Santi suggested the incorporation of HIAs into the EIAs process in order to shorten the filing period.
However, if the government wants to separate the two requirements, it should take into account the need for convenience on the part of private companies.
The University of the Thai Chamber of Commerce said the prolonged conflict over investment in Map Ta Phut could slow economic growth in the current quarter and next year.
Economic growth could be slashed by 0.5 percentage point in the current quarter, due to the disappearance of industrial investment worth between Bt10 billion and Bt20 billion.
If the injunction were in place for another six to 12 months, growth next year could drop by 0.5-1 percentage point, from a target of 2-3 per cent, the university said.
Chatree Charoensiri. deputy secretary of the National Health Commission Office of Thailand, yesterday said after the fifth and final public hearing on HIA guidelines that it was agreed all industrial projects with intense environmental impacts should strictly comply with the Constitution.
That is, they must complete the EIA and HIA process and win consent from local communities and the independent environmental body.
The HIA guidelines should also allow local communities to ask for a health-impact evaluation.
Attending yesterday's hearing were hundreds of representatives from the government sector, local communities and private companies.
Tuesday, October 20, 2009
PRIVATE SECTOR WANTS RAYONG A SPECIAL ZONE
The private sector today will propose the government turn Rayong province into a special economic zone to improve budget allocation for its industrialised areas, including Map Ta Phut, as well as the payment of an environment tax to assure further industrial development.
The first proposal was agreed upon yesterday by the Joint Privaate Committee on Commerce, Industries and Banking.
At the meeting, Suthi Atchasai, coordinator of a public network on the Eastern Seaboard, which is one of the main forces blocking further industrial development in the province, said there must be a clear definition of what constitutes a special economic zone.
"Every party, including local communities, should be able to participate in the discussion of this issue. Importantly, this proposal must not have a hidden agenda benefiting any single party and must clearly keep in line with the Constitution's Article 67", he said.
PTT Aromatics and Refining president and CEO Chainoi Puankosoom said the proposal would allow non-Rayong residents working in the area to register as provincial citizens. Then more budget would go to the province, improving the standard of living as a whole.
"We believe people today are not so concerned about the polluted environment, but they are worried more about their low standard of living, such as poor management of waste treatment or utilities," he said.
Federation of Thai Industries chairman Santi Vilassakdanont said the proposal would be tabled at the Public-Private Partnership meeting today.
Meanwhile, the private sector will also propose collection of an environment tax to its government counterparts, on condition that the money generated go to the areas where plants are located.
"We want to express that we as concerned about the environment as other parties. We are willing to follow the laws and regulations, as well as set up a Bt17-billion fund to improve the environment from 2007-11," he said.
He said the private sector would reiterate to the government that it fully supported the idea of an "eco-industrial town" as a long-term goal out of concern from local and foreign investors that industrial development in Thailand could be discontinued.
"If this conflict continues, it's a great risk. So far, I have not heard about firms moving their investment to other countries, but it may happen soon," said Japanese Chamber of Commerce vice chairman Fukujiro Yamabe.
He said it was difficult for Japanese companies in Thailand to explain the court's recent injunction against 76 industrial projects to parent companies. Therefore, the government should speed up resolution of the problem, in order to maintain their confidence in running businesses here.
"It will be too long for investors, should this issue be prolonged until next year," he added.
Nandor von der Luehe, chairman of the Joint Foreign Chambers of Commerce in Thailand, said investors fully understood the importance of environmemtal protection. He believes Thailand has good environmental-protection laws that meet world-class tandards and that most of the suspended projects could pass those standards.
Therefore, the government should take the shorted time to move the situation from the current murky state, in order to restore investor confidence.
"We would like to envourage the government to allocate more money to local communities, in order to improve people's quality of life," von der Luehe added.
Notably, the conflict has delayed some refiners' investment plans to improve their oil quality to meet Euro IV emission standards.
The first proposal was agreed upon yesterday by the Joint Privaate Committee on Commerce, Industries and Banking.
At the meeting, Suthi Atchasai, coordinator of a public network on the Eastern Seaboard, which is one of the main forces blocking further industrial development in the province, said there must be a clear definition of what constitutes a special economic zone.
"Every party, including local communities, should be able to participate in the discussion of this issue. Importantly, this proposal must not have a hidden agenda benefiting any single party and must clearly keep in line with the Constitution's Article 67", he said.
PTT Aromatics and Refining president and CEO Chainoi Puankosoom said the proposal would allow non-Rayong residents working in the area to register as provincial citizens. Then more budget would go to the province, improving the standard of living as a whole.
"We believe people today are not so concerned about the polluted environment, but they are worried more about their low standard of living, such as poor management of waste treatment or utilities," he said.
Federation of Thai Industries chairman Santi Vilassakdanont said the proposal would be tabled at the Public-Private Partnership meeting today.
Meanwhile, the private sector will also propose collection of an environment tax to its government counterparts, on condition that the money generated go to the areas where plants are located.
"We want to express that we as concerned about the environment as other parties. We are willing to follow the laws and regulations, as well as set up a Bt17-billion fund to improve the environment from 2007-11," he said.
He said the private sector would reiterate to the government that it fully supported the idea of an "eco-industrial town" as a long-term goal out of concern from local and foreign investors that industrial development in Thailand could be discontinued.
"If this conflict continues, it's a great risk. So far, I have not heard about firms moving their investment to other countries, but it may happen soon," said Japanese Chamber of Commerce vice chairman Fukujiro Yamabe.
He said it was difficult for Japanese companies in Thailand to explain the court's recent injunction against 76 industrial projects to parent companies. Therefore, the government should speed up resolution of the problem, in order to maintain their confidence in running businesses here.
"It will be too long for investors, should this issue be prolonged until next year," he added.
Nandor von der Luehe, chairman of the Joint Foreign Chambers of Commerce in Thailand, said investors fully understood the importance of environmemtal protection. He believes Thailand has good environmental-protection laws that meet world-class tandards and that most of the suspended projects could pass those standards.
Therefore, the government should take the shorted time to move the situation from the current murky state, in order to restore investor confidence.
"We would like to envourage the government to allocate more money to local communities, in order to improve people's quality of life," von der Luehe added.
Notably, the conflict has delayed some refiners' investment plans to improve their oil quality to meet Euro IV emission standards.
Wednesday, October 14, 2009
NO ORGANIC LAW FOR PROJECTS UNTIL MID-2010
The organic law on polluting industrial projects will take effect next May at the earliest, so temporary measures will need to be put in place during the legal void, Industry Vice Minister Sorayud Petchtrakul said yesterday.
After meeting with the National Economic and Social Development Board (NESDB), he said the law to support Article 67 of the Constitution should be enforced next May if there is no unfavourable development.
In the meanwhile, the government on Tuesday sought to ease industrial conflicts through amendments to Article 51 of the National Evironmental Quality Act.
The amendments will allow for the establishment of the independent environment body required by the Constitution for all industrial projects with serious environmental impacts.
The government expects the amendment to take effect within 90 days, to address the private sector's worries. Altogether, 76 industrial projects are now suspended, while the Central Administrative Court is reviewing a petition against eight government units charged with negligence.
Sorayuth said that until then, shorterm, measures will be enforced through the amendment of Article 46 (2) of the environment law.
The environmental-and health-impact assessment guidelines will be imposed, while industrail projects need to seek stakeholders' consent through public hearings.
The NESDB and the Natural Resources and Environment Ministry are finalising the list of industries with serious environmental impacts.
The Industry Ministry has already issued a list of eight industries with serious impacts.
Industry permanent secretary Witoon Simachokedee said the ministry would set up a war room to coordinate with the private sector. On Firday, industrial officials from 20 provinces serving as industrial bases, like Samut Prakan and Rayong provinces, will gather in Bangkok to discuss how they can play a bigger role in tackling conflict.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, praised the Cabinet's decision to endorse the amendments. The rules should conform to Article 67, so that the government will not be mistaken as trying to please the industrial sector, he said.
The amendments should be put for parliamentary review as soon as possible, he said, adding that he expects the amended rules to go into force in February.
The proposed Bt100 billion emergency fund depends on the Administrative Court's judgement on the 76 suspended industrial projects and damage evalution. Each operator is estimating the damage, he added.
"The Industry Ministry will set up a war room to coordinate with the private sector."
After meeting with the National Economic and Social Development Board (NESDB), he said the law to support Article 67 of the Constitution should be enforced next May if there is no unfavourable development.
In the meanwhile, the government on Tuesday sought to ease industrial conflicts through amendments to Article 51 of the National Evironmental Quality Act.
The amendments will allow for the establishment of the independent environment body required by the Constitution for all industrial projects with serious environmental impacts.
The government expects the amendment to take effect within 90 days, to address the private sector's worries. Altogether, 76 industrial projects are now suspended, while the Central Administrative Court is reviewing a petition against eight government units charged with negligence.
Sorayuth said that until then, shorterm, measures will be enforced through the amendment of Article 46 (2) of the environment law.
The environmental-and health-impact assessment guidelines will be imposed, while industrail projects need to seek stakeholders' consent through public hearings.
The NESDB and the Natural Resources and Environment Ministry are finalising the list of industries with serious environmental impacts.
The Industry Ministry has already issued a list of eight industries with serious impacts.
Industry permanent secretary Witoon Simachokedee said the ministry would set up a war room to coordinate with the private sector. On Firday, industrial officials from 20 provinces serving as industrial bases, like Samut Prakan and Rayong provinces, will gather in Bangkok to discuss how they can play a bigger role in tackling conflict.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, praised the Cabinet's decision to endorse the amendments. The rules should conform to Article 67, so that the government will not be mistaken as trying to please the industrial sector, he said.
The amendments should be put for parliamentary review as soon as possible, he said, adding that he expects the amended rules to go into force in February.
The proposed Bt100 billion emergency fund depends on the Administrative Court's judgement on the 76 suspended industrial projects and damage evalution. Each operator is estimating the damage, he added.
"The Industry Ministry will set up a war room to coordinate with the private sector."
Tuesday, October 13, 2009
MINISTRY SEEK "FRIENDLIER" REGULATIONS
In order to unlock the regulation halting 76 construction projects in the expansion phase of the Map Ta Phut industrial project in Rayong province, a key legal amendment to ministerial regulations will need to be tabled at today's Cabinet meeting. The amendment is expected to be approved right away.
The amendment is being pushed by the Natural Resources and Environment Ministry because it wants to introduce a ministerial regulation that is "friendlier" than the Constitution's Article 67, which was cited by the Central Administrative Court when it issued an injunction on all megaprojects from being continued. The projects were halted at the request of local residents who say they are not being protected from decades-long exposure to toxic waste.
Speaking at a press conference, the ministry's permanent secretary Saksit Sridej said the amendment was also aimed at fixing flaws in ministerial regulations, which would result in environmental impact assessments (EIA) being conducted more in favour of local residents while not being too demanding on business operators and project owners.
When asked if the amendment, once it is approved, would favour the 76 halted projects, Saksit said the projects had already received EIA approvals under existing ministerial regulations.
"But whether it is necessary for them to strictly comply with Constitution's Article 67 as demanded by the residents will depend largely on legal interpretations.
"The ministry will also have to pay heed to the residents' complaints as well as listen to all parties involved, including project owners. All conflicts can be solved if parties involved stick to the principle that development can only continue if economic and environmental concerns are in balance," he said.
Saksit added that a public forum in the five tambons of Rayong's Ban Chang district would be held in the next two weeks so all parties can air their complaints. Once the 120-day period has been completed, a series of proposed pollution-control measures would go into effect, as ordered by the Court. All details of the proposed measures need to be approved by all sides before they are submitted to the ministry for the initial green light and then put to the Cabinet for official approval, he added.
Suthi Atchasai, an advocate of the residents, said he would lodge a criminal complaint on Wednesday against the Industry Minister and governor of the Industrial Estate Authority of Thailand for negligence of duty and their failure to prevent construction works from being continued. He added that several of the projects are still being continued despite the Court injunction.
The amendment is being pushed by the Natural Resources and Environment Ministry because it wants to introduce a ministerial regulation that is "friendlier" than the Constitution's Article 67, which was cited by the Central Administrative Court when it issued an injunction on all megaprojects from being continued. The projects were halted at the request of local residents who say they are not being protected from decades-long exposure to toxic waste.
Speaking at a press conference, the ministry's permanent secretary Saksit Sridej said the amendment was also aimed at fixing flaws in ministerial regulations, which would result in environmental impact assessments (EIA) being conducted more in favour of local residents while not being too demanding on business operators and project owners.
When asked if the amendment, once it is approved, would favour the 76 halted projects, Saksit said the projects had already received EIA approvals under existing ministerial regulations.
"But whether it is necessary for them to strictly comply with Constitution's Article 67 as demanded by the residents will depend largely on legal interpretations.
"The ministry will also have to pay heed to the residents' complaints as well as listen to all parties involved, including project owners. All conflicts can be solved if parties involved stick to the principle that development can only continue if economic and environmental concerns are in balance," he said.
Saksit added that a public forum in the five tambons of Rayong's Ban Chang district would be held in the next two weeks so all parties can air their complaints. Once the 120-day period has been completed, a series of proposed pollution-control measures would go into effect, as ordered by the Court. All details of the proposed measures need to be approved by all sides before they are submitted to the ministry for the initial green light and then put to the Cabinet for official approval, he added.
Suthi Atchasai, an advocate of the residents, said he would lodge a criminal complaint on Wednesday against the Industry Minister and governor of the Industrial Estate Authority of Thailand for negligence of duty and their failure to prevent construction works from being continued. He added that several of the projects are still being continued despite the Court injunction.
Sunday, October 11, 2009
STRANDED COMPANIES CALL FOR PERMISSION TO PROCEED WITH STALLED MAP TA PHUT PROJECTS
NGO plans to take more actions to ensure that the government complies with environmental laws
Manufacturers with operations in Map Ta Phut pleaded last week to be allowed to proceed with 76 suspended industrial projects, vowing to abide by any additional environmental regulations drawn up by the government.
At a roundtable hosted by The Nation last Friday, Chainoi Puankosoom, president and CEO of PTT Aromatics and Refining, said the industrial sector is not opposed to Article 67 of the Constitution - which requires projects to undergo a health-impact assessment (HIA) and receive public consent and approval from the yet-to-be established independent environment body - and is willing to conduct environmental impact assessments (EIAs) and HIAs. However, he added, the government has yet to draw up laws pertaining to HIAs.
"As such, the ongoing projects should be allowed to proceed, as we are ready to honour all rules and regulations to come, including conducting public hearings. If we're not doing enough, we will invest more to fix the problems.
"We can't live without the community's support, but stopping these projects won't reduce pollution. It's time to find ways to support peaceful coexistence," he said.
He said that while the suit filed by the Anti-Global Warming Association and 43 Rayong villagers that led to the injunction was taken against eight government agencies, the injunction punished private companies that have strictly followed established rules and a pollution-reduction plan launched in 2007. Under the plan, existing plants must reduce toxic emissions by 20 per cent and new plants are only approved when they demonstrate that their emissions level is at 80 per cent of those of existing plants.
Chainoi noted that the suspension of the 76 projects threatened new investment in the country, as similar actions could take place nationwide. Along with foreign direct investment, financial institutions would suffer, he said, as half of the more than Bt400 billion invested in the 76 projects is borrowed.
At present, some exporters based in Map Ta Phut are facing difficulties stemming from buyers' concerns over environmental issues, he said.
Chainoi urged the creation of a neutral academic centre tasked with the collection and dissemination of balanced information from the government and non-profit organisations, which he said would serve the independent environmental body's operations. Then, if damages are apparent, new rules could be established and if they are too strict, investors can move elsewhere.
"The government must take care of this issue. It can issue rules that would make all communities welcome industrial plants," he said.
Cholanat Yanaranop, president of Siam Cement Group (SCG)'s chemicals business, said that the injunction is causing concern for foreign partners like Dow Chemical, which are no longer sure about whether to proceed with their joint investments. He noted that due to the financial crisis, Dow Chemical cancelled investments in many places but maintained its investment in Thailand thanks to the trust it had developed in SCG, and what he described as the firms' shared philosophy of operating under a legal framework, demonstrating care for the environment and local communities. "We don't know how to explain this [to Dow], as we have followed the law, but the project was halted," Cholanat said, adding that partners are more important than interest rates. "I will fly to the US to meet Dow Chemical executives and explain the actual situation at Map Ta Phut."
The group's suspended projects worth Bt170 billion were scheduled to begin operations in the next three to 12 months, involving more than 100,000 workers. Cholanat admitted that the government had been slow to take action on some environmental concerns, but said that could have been a result of the frequent government changes last year.
He insisted that SCG is doing more than it is required to do. Every month, he said, members of local communities are invited to visit the firm's plants, which he said had met with EIA and HIA standards set jointly with Burapha University in the absence of government HIA guidelines. Cholanat urged the government to take action as soon as possible. Thailand's petrochemical industry enjoys high competitiveness, operating in a cluster with upstream to downstream industries. If the legal battle was prolonged, he warned, it could prove to be a turning point for Thai industry. He stressed that lessons learned by the Japanese showed that heavy industry and local communities could live together if public participation and transparent operations were assured.
Verapong Chaiperm, deputy governor of the Industrial Estate Authority of Thailand, which oversees Map Ta Phut Industrial estate and four more nearby, said that regulations should become clearer soon. The local community will submit its conditions to the National Environment Board on October 18, as a result of the Rayong Administrative Court's order in March. Then, the guidelines on HIAs as well as for the independent environment body will be in place.
"It's a systemic problem, with a lack of collaboration between politicians and civil servants and a lack of trust in the communities. The resumed operation of the Eastern Seaboard Committee, after an eight-year absence, should promote problem solving and unity," he said.
Srisuwan Chanya, president of the Anti-Global Warming Association, noted that the court case is not meant to tackle environmental problems only at Map Ta Phut but elsewhere in the country as well. He said the case was mainly aimed at politicians and civil servants who fail to comply with the law and ignore public concerns. The association and Rayong villagers filed the lawsuit, he said, after being ignored for a long time. The last straw, he said, was when the Industry Ministry was slow to release its list of industrial activities that had serious environmental effects, which, as of September 2008, covered 19 activities, according to a series of public hearings in 2008.
"The aim of the lawsuit is to force government agencies to issue regulations or laws pursuant to the Constitution. [The government] could have issued a regulation under the PM's Office or had the National Environment Office issue the announcement. They took too long," Srisuwan said.
He said that next week he would take legal action against the government's appeal against the injunction. He said the government had failed to seek a dialogue with the group, and the appeal further demonstrated the government's lack of concern about villagers' problems.
In the next three weeks, Srisuwan said, he also plans to file a petition against the Industry Ministry, which on September 14 unveiled a list of only eight industrial projects deemed to be "most dangerous".
The group also plans to challenge the rules that allow the natural resources and environment minister to punish the independent environment body, as that violated its independence, he said.
"The Map Ta Phut case is just the tip of the iceberg. So far, over 500 projects have won EIAs and we will check out which are causing environmental problems," he said.
At the roundtable, participants agreed that government action and a commitment from the private sector to abide by all environmental and health requirements were needed to end the dispute.
Arthid Nanthawithaya, Siam Commercial Bank (SCB) senior executive vice president for corporate banking, said at the roundtable that the issue would only be resolved if all parties - the government, private companies and local communities - open a dialogue in good faith.
"The injunction affects the [industrial sector's] long supply chain, and there should be dialogue to prevent damage to ongoing projects. While the government takes care of its part and the private sector operates with good governance, this should be solved for the sake of the nation," he said.
Manufacturers with operations in Map Ta Phut pleaded last week to be allowed to proceed with 76 suspended industrial projects, vowing to abide by any additional environmental regulations drawn up by the government.
At a roundtable hosted by The Nation last Friday, Chainoi Puankosoom, president and CEO of PTT Aromatics and Refining, said the industrial sector is not opposed to Article 67 of the Constitution - which requires projects to undergo a health-impact assessment (HIA) and receive public consent and approval from the yet-to-be established independent environment body - and is willing to conduct environmental impact assessments (EIAs) and HIAs. However, he added, the government has yet to draw up laws pertaining to HIAs.
"As such, the ongoing projects should be allowed to proceed, as we are ready to honour all rules and regulations to come, including conducting public hearings. If we're not doing enough, we will invest more to fix the problems.
"We can't live without the community's support, but stopping these projects won't reduce pollution. It's time to find ways to support peaceful coexistence," he said.
He said that while the suit filed by the Anti-Global Warming Association and 43 Rayong villagers that led to the injunction was taken against eight government agencies, the injunction punished private companies that have strictly followed established rules and a pollution-reduction plan launched in 2007. Under the plan, existing plants must reduce toxic emissions by 20 per cent and new plants are only approved when they demonstrate that their emissions level is at 80 per cent of those of existing plants.
Chainoi noted that the suspension of the 76 projects threatened new investment in the country, as similar actions could take place nationwide. Along with foreign direct investment, financial institutions would suffer, he said, as half of the more than Bt400 billion invested in the 76 projects is borrowed.
At present, some exporters based in Map Ta Phut are facing difficulties stemming from buyers' concerns over environmental issues, he said.
Chainoi urged the creation of a neutral academic centre tasked with the collection and dissemination of balanced information from the government and non-profit organisations, which he said would serve the independent environmental body's operations. Then, if damages are apparent, new rules could be established and if they are too strict, investors can move elsewhere.
"The government must take care of this issue. It can issue rules that would make all communities welcome industrial plants," he said.
Cholanat Yanaranop, president of Siam Cement Group (SCG)'s chemicals business, said that the injunction is causing concern for foreign partners like Dow Chemical, which are no longer sure about whether to proceed with their joint investments. He noted that due to the financial crisis, Dow Chemical cancelled investments in many places but maintained its investment in Thailand thanks to the trust it had developed in SCG, and what he described as the firms' shared philosophy of operating under a legal framework, demonstrating care for the environment and local communities. "We don't know how to explain this [to Dow], as we have followed the law, but the project was halted," Cholanat said, adding that partners are more important than interest rates. "I will fly to the US to meet Dow Chemical executives and explain the actual situation at Map Ta Phut."
The group's suspended projects worth Bt170 billion were scheduled to begin operations in the next three to 12 months, involving more than 100,000 workers. Cholanat admitted that the government had been slow to take action on some environmental concerns, but said that could have been a result of the frequent government changes last year.
He insisted that SCG is doing more than it is required to do. Every month, he said, members of local communities are invited to visit the firm's plants, which he said had met with EIA and HIA standards set jointly with Burapha University in the absence of government HIA guidelines. Cholanat urged the government to take action as soon as possible. Thailand's petrochemical industry enjoys high competitiveness, operating in a cluster with upstream to downstream industries. If the legal battle was prolonged, he warned, it could prove to be a turning point for Thai industry. He stressed that lessons learned by the Japanese showed that heavy industry and local communities could live together if public participation and transparent operations were assured.
Verapong Chaiperm, deputy governor of the Industrial Estate Authority of Thailand, which oversees Map Ta Phut Industrial estate and four more nearby, said that regulations should become clearer soon. The local community will submit its conditions to the National Environment Board on October 18, as a result of the Rayong Administrative Court's order in March. Then, the guidelines on HIAs as well as for the independent environment body will be in place.
"It's a systemic problem, with a lack of collaboration between politicians and civil servants and a lack of trust in the communities. The resumed operation of the Eastern Seaboard Committee, after an eight-year absence, should promote problem solving and unity," he said.
Srisuwan Chanya, president of the Anti-Global Warming Association, noted that the court case is not meant to tackle environmental problems only at Map Ta Phut but elsewhere in the country as well. He said the case was mainly aimed at politicians and civil servants who fail to comply with the law and ignore public concerns. The association and Rayong villagers filed the lawsuit, he said, after being ignored for a long time. The last straw, he said, was when the Industry Ministry was slow to release its list of industrial activities that had serious environmental effects, which, as of September 2008, covered 19 activities, according to a series of public hearings in 2008.
"The aim of the lawsuit is to force government agencies to issue regulations or laws pursuant to the Constitution. [The government] could have issued a regulation under the PM's Office or had the National Environment Office issue the announcement. They took too long," Srisuwan said.
He said that next week he would take legal action against the government's appeal against the injunction. He said the government had failed to seek a dialogue with the group, and the appeal further demonstrated the government's lack of concern about villagers' problems.
In the next three weeks, Srisuwan said, he also plans to file a petition against the Industry Ministry, which on September 14 unveiled a list of only eight industrial projects deemed to be "most dangerous".
The group also plans to challenge the rules that allow the natural resources and environment minister to punish the independent environment body, as that violated its independence, he said.
"The Map Ta Phut case is just the tip of the iceberg. So far, over 500 projects have won EIAs and we will check out which are causing environmental problems," he said.
At the roundtable, participants agreed that government action and a commitment from the private sector to abide by all environmental and health requirements were needed to end the dispute.
Arthid Nanthawithaya, Siam Commercial Bank (SCB) senior executive vice president for corporate banking, said at the roundtable that the issue would only be resolved if all parties - the government, private companies and local communities - open a dialogue in good faith.
"The injunction affects the [industrial sector's] long supply chain, and there should be dialogue to prevent damage to ongoing projects. While the government takes care of its part and the private sector operates with good governance, this should be solved for the sake of the nation," he said.
Friday, October 9, 2009
JAPANESE VOICE INVESTMENT FEARS
The Japanese Chamber of Commerce yesterday expressed its concern about the court injunction on 76 industrial projects, which affects some of its members and could have a wider effect on other projects in Map Ta Phut Industrial Estate.
Yo Jitsukata, president of the Bangkok-based chamber, said in a statement that some plants in the estate might have to shut down their operations due to a shortage of raw materials to be supplied by some of the suspended projects.
Among the 76 projects, two belong to Ube Nylon (Thailand) and Siam Mitsui PTA.
He said that if the dispute were not resolved quickly, it could affect Thailand's inward investment, including that from Japan. This would also pose a threat to the Kingdom's economic recovery as well as the strategy to strengthen Thailand's basic industries.
Jitsukata added that Japanese investors were concerned about that Japanese investors were concerned about pollution problems and had cooperated with the public sector to ensure economic development went hand in hand with protecting the environment.
They have also worked with Japanese organisations to address environmental problems in Thailand.
Meanwhile, Tevin Vongvanich, chief finance officer of PTT, said the company would need to review its five-year investment plan, as some of the investment projects were affected by the injunction-including the sixth gas-separation plant and a natural-gas-separation plant and a natural-gas station.
PTT plans to invest Bt230 billion during 2009-2013, including Bt148 billion by its subsidiary PTT Exploration and Production. Twenty-five of the 76 suspended projects belong to the group.
"Some projects are not yet affected in the absence of an official order, but we need to prepare ourselves, as the court is reviewing the injunction and the case against government units. The review of the investment plan will take into account long-term effects on Map Ta Phut, and will provide new investment options if projects in Map Ta Phut are suspended," Tevin said.
Toyo-Thai Corp, a construction compamy, said work at two projects in Map Ta Phut continued as usual, and the company had realised 80 per cent of the construction value.
Kasikorn Research Centre yesterday said the government needed to eliminate the environmental hurdles for the 76 projects, because the projects are intended to strengthen Thailand's energy security and reduce imports.
Yo Jitsukata, president of the Bangkok-based chamber, said in a statement that some plants in the estate might have to shut down their operations due to a shortage of raw materials to be supplied by some of the suspended projects.
Among the 76 projects, two belong to Ube Nylon (Thailand) and Siam Mitsui PTA.
He said that if the dispute were not resolved quickly, it could affect Thailand's inward investment, including that from Japan. This would also pose a threat to the Kingdom's economic recovery as well as the strategy to strengthen Thailand's basic industries.
Jitsukata added that Japanese investors were concerned about that Japanese investors were concerned about pollution problems and had cooperated with the public sector to ensure economic development went hand in hand with protecting the environment.
They have also worked with Japanese organisations to address environmental problems in Thailand.
Meanwhile, Tevin Vongvanich, chief finance officer of PTT, said the company would need to review its five-year investment plan, as some of the investment projects were affected by the injunction-including the sixth gas-separation plant and a natural-gas-separation plant and a natural-gas station.
PTT plans to invest Bt230 billion during 2009-2013, including Bt148 billion by its subsidiary PTT Exploration and Production. Twenty-five of the 76 suspended projects belong to the group.
"Some projects are not yet affected in the absence of an official order, but we need to prepare ourselves, as the court is reviewing the injunction and the case against government units. The review of the investment plan will take into account long-term effects on Map Ta Phut, and will provide new investment options if projects in Map Ta Phut are suspended," Tevin said.
Toyo-Thai Corp, a construction compamy, said work at two projects in Map Ta Phut continued as usual, and the company had realised 80 per cent of the construction value.
Kasikorn Research Centre yesterday said the government needed to eliminate the environmental hurdles for the 76 projects, because the projects are intended to strengthen Thailand's energy security and reduce imports.
Wednesday, October 7, 2009
OIC MOVES TO REVEAL HEALTH, ENVIRONMENT DATA TO PUBLIC
The Official Information Commission (OIC) is planning to invoke the Information Act to help people know more about conditions that worry many: the healthiness of their environment and surroundings.
They feel that depriving them of this information can put their health at risk, particularly when they live near industrial projects they oppose.
"Now, we are in the process of asking for opinions from relevant agencies about granting access to information on environment and health to people under Clause 8 of the Information Act's Section 9," OIC member Thienchai na Nakhon said at a seminar yesterday.
Thienchai, a former member of National Environment Board (NEB), believes invoking the Act for this purpose should be possible.
Yesterday's seminar also addressed issues of public access to Environmental Impact Assessment (EIA) information.
Currently, the Office of Natural Resources and Environmental Policy and Planning (Onep) releases only EIAs that have passed the review of specialists.
"People's access is very limited these days," Thailand Environment Institute senior director Somruedee Nicrowattanayingyong said.
Supoj Songsiang, who represents Mae Rampeung Conservation Group, said Onep's refusal to release information caused doubts to grow in people's hearts.
"It makes us doubt whether the authorities care just about the economy and not people's well-being," he said. Supoj's group opposes a plan to establish an iron mill in Prachuap Khiri Khan.
Onep senior official Suchaya Amaralikhit said her office released information on complete environment assessments only, because details from ongoing EIAs could lead to confusion and hurt some parties' interests.
"Our information disclosure is strictly in line with official regulations," she insisted.
She said the current practice had prompted many people to lodge complaints against her office.
They feel that depriving them of this information can put their health at risk, particularly when they live near industrial projects they oppose.
"Now, we are in the process of asking for opinions from relevant agencies about granting access to information on environment and health to people under Clause 8 of the Information Act's Section 9," OIC member Thienchai na Nakhon said at a seminar yesterday.
Thienchai, a former member of National Environment Board (NEB), believes invoking the Act for this purpose should be possible.
Yesterday's seminar also addressed issues of public access to Environmental Impact Assessment (EIA) information.
Currently, the Office of Natural Resources and Environmental Policy and Planning (Onep) releases only EIAs that have passed the review of specialists.
"People's access is very limited these days," Thailand Environment Institute senior director Somruedee Nicrowattanayingyong said.
Supoj Songsiang, who represents Mae Rampeung Conservation Group, said Onep's refusal to release information caused doubts to grow in people's hearts.
"It makes us doubt whether the authorities care just about the economy and not people's well-being," he said. Supoj's group opposes a plan to establish an iron mill in Prachuap Khiri Khan.
Onep senior official Suchaya Amaralikhit said her office released information on complete environment assessments only, because details from ongoing EIAs could lead to confusion and hurt some parties' interests.
"Our information disclosure is strictly in line with official regulations," she insisted.
She said the current practice had prompted many people to lodge complaints against her office.
Sunday, September 27, 2009
REACHING OUT TO LOCAL COMMUNITIES
At first glance, the shoe manufacturing factory of Lamsaiyong Population and Community Development Cooperative seems disorganised with work being done here and there. Yet, this factory is the life of the cooperative, as it makes sufficient profits for the cooperative's community activities and creates jobs for villagers.
The she-parts manufacturing business generated a profit of Bt2.2 million in 2008 fiscal year ending March 31, compared to Bt118,763 in the previous year. In 1997, the profit was Bt2.4 million or 8.04 per cent of the Bt30-million revenue.
"I don't know it we would make a profit this year, as orders are affected by the political turbulence and oil prices. Still, this helps meet our goal of creating jobs for the locals. I'm also now open to new ideas to strengthen the cooperative," chairman Yuan Manprakhon said.
The 70-year-old chairman recelled the days prior to 1989 when tambon Lam Sai Yong in Nang Rong district was nearly deserted, like other places across the country, as young adults left the village and only the elderly and children remained.
The village today is more lively and independent thanks to Lamsaiyong Population and Community Development Cooperative, which brought the factory to the village in 1992. The plant now generates the highest profit to the cooperative, which also extends farming loans, conducts crop-trading and receives deposits.
"our focus then was how to help members' children, who had to leave the village, to find jobs. We must have something here so that they could stay hers," said Cooperative chairman Yuan Manprakhon. "Our original businesses - loan extension, fertiliser trading, crops trading, and deposits - could do little in easing unemployment."
Yuan has been involve with the cooperative since 1989 when it was started. He recalled the cooperative's beginnings under the guidance of the Population and Community Development Association (PDA), which launched the Community-Based Integrated Rural Development Project (CBIRD)/Nang Rong in the district.
The non-profit organisation first arrived in the district in the 1980s to strengthen local communities through traiining and activities to improve their health and living quality. When CBIRD's funding dried up, villagers scrambled to find out how to preserve the knowledge and stand on their own feet. The cooperative was established the same year, with 140 members who had to pay at least Bt50 for 5 shares. With a seed capital of only Bt7,000, the cooperative had limitations in its lending activities and paddy rice trading and first thought about turning the village into a business site.
Bata Thailand showed them the light by offering free training to 10 staff, who returned to train others. With the staff ready, Btat transferred 35 sewing machines to the cooperative, which built up a plant on its own land with help from CBIRD's Bt150,000 financing.
Shortly after that, the cooperative approached Bata to purchase the machine for Bt5.7 million, with borrowing from CBIRD. It repaid the debt a year ahead of schedule with profits from the factory, which mainly produces school shoe tops and para floor slippers for Bata and its marketing arm in Malaysia. The plant now employs 170 workers, down from 210 prior to the 1997 crisis. Ninety per cent of them are village residents and they all earn minimum wages plus social-security benefits.
As of now, the cooperative has 746 shareholders, with a capitalk of Bt14 million. With the profits, it is creating a market for farmers' crops and has already bought a 1.5-rai plot near the existing office. To Yuan, the new land plot could accommodate a new factory or a shop where members' goods are displayed.
"We have come this far because of the support of our members and CBIRD. We've never been short of help," Yuan strssed.
CBIRD/NR is one of 18 centres nationwide of the PDA, founded by Mechai Viravaidya who is commonly known as the condom man and the CSR man. Since 1984, it has extended help to nearby villages under Mechai's philosophy that the poor are not beggars and they should not be offered freebies but instead be helped so that they can stand on their own feet.
Prayom Promboot, the centre's chief, said the centre first focused on agricultural training and promoted knowledge in health, nutrition, environment and household industry for 40 villages in 13 Tambons with funding from the Canadian International Development Agency (CIDA).
In cooperation with government agencies, the villagers later set up their own groups for different purposes like community savings, rice banks and fertiliser funds. For instance, in supporting the fertiliser funds, CBIRD/NR allocated 100 sacks of fertiliser to each group. In return for each sack, the group's members must repay with 11 buckets of rice. While nine buckets were taken as the fertiliser price, the fund kept two buckets. In the first year of operation, the fund collected 200 buckets or rice and later loaned the rice to needy villagers.
Later, villagers in 13 tambons created cooperatives for higher bargaining power against middlemen when it comes to fertilisers, tools and crops pricing. The centre's coverage area was later expanded to cover 90 villages. A few cooperatives were shut down, however. One saw its fuel station transferred to an oil retailer while one had to shut down a cow milk project as it was redundant to the province's programme.
"That's technical. The rest of them are doing fine and getting stronger. That's in line with our policy to make villagers stand on their own feet," Prayom said.
Under the centre's guidance, female villagers in Nong Ta Kai are creating a cooperative to sell silk fabrics, with some selected for Thai Craft's showroom in Bangkok. Like Lam Sai Yong, some companies set up factories in other villages.
To cash in on the growing sense of corporate social responsibility (CSR), PDA recently introduced a new programme to match companies engaged in good deeds with poor villages, with focus mainly on forest, chemical residues and water.
"We have 27 backers making a combined donation of Bt29 million for 33 villages," said Prahat Tafong, field director of the village development partnership project that kicked off in 2007.
The donors include Maitree Trust Fund, Novartis, Thai Beverage, Citigroup and British Chamber of Commerce. Their fund swill be allocated to villages for development, which costs Bt2,500 per head. For sustainability, each village will manage the fund through an organisation with 32 members who will decide how the funds are to be used for income generation, environment, education/youth, and health/the elderly.
The donors can propose ideas for the villages in formulating development plans. To Prahat, this will ensure their partnership and local community sustainability.
In his interview earlier, Mechai said there's no government in the world that can deliver everything to its citizens. Social contribution, like giving out money, won't help as it will not create new knowledge or enhance the poor's energy and ability. Worse, it teaches them to ask for free things.
"The poor don't have the chance to obtain loans at market rates. Businessman can give them ideas and provide the loans, to help them stand on their own feet."
The she-parts manufacturing business generated a profit of Bt2.2 million in 2008 fiscal year ending March 31, compared to Bt118,763 in the previous year. In 1997, the profit was Bt2.4 million or 8.04 per cent of the Bt30-million revenue.
"I don't know it we would make a profit this year, as orders are affected by the political turbulence and oil prices. Still, this helps meet our goal of creating jobs for the locals. I'm also now open to new ideas to strengthen the cooperative," chairman Yuan Manprakhon said.
The 70-year-old chairman recelled the days prior to 1989 when tambon Lam Sai Yong in Nang Rong district was nearly deserted, like other places across the country, as young adults left the village and only the elderly and children remained.
The village today is more lively and independent thanks to Lamsaiyong Population and Community Development Cooperative, which brought the factory to the village in 1992. The plant now generates the highest profit to the cooperative, which also extends farming loans, conducts crop-trading and receives deposits.
"our focus then was how to help members' children, who had to leave the village, to find jobs. We must have something here so that they could stay hers," said Cooperative chairman Yuan Manprakhon. "Our original businesses - loan extension, fertiliser trading, crops trading, and deposits - could do little in easing unemployment."
Yuan has been involve with the cooperative since 1989 when it was started. He recalled the cooperative's beginnings under the guidance of the Population and Community Development Association (PDA), which launched the Community-Based Integrated Rural Development Project (CBIRD)/Nang Rong in the district.
The non-profit organisation first arrived in the district in the 1980s to strengthen local communities through traiining and activities to improve their health and living quality. When CBIRD's funding dried up, villagers scrambled to find out how to preserve the knowledge and stand on their own feet. The cooperative was established the same year, with 140 members who had to pay at least Bt50 for 5 shares. With a seed capital of only Bt7,000, the cooperative had limitations in its lending activities and paddy rice trading and first thought about turning the village into a business site.
Bata Thailand showed them the light by offering free training to 10 staff, who returned to train others. With the staff ready, Btat transferred 35 sewing machines to the cooperative, which built up a plant on its own land with help from CBIRD's Bt150,000 financing.
Shortly after that, the cooperative approached Bata to purchase the machine for Bt5.7 million, with borrowing from CBIRD. It repaid the debt a year ahead of schedule with profits from the factory, which mainly produces school shoe tops and para floor slippers for Bata and its marketing arm in Malaysia. The plant now employs 170 workers, down from 210 prior to the 1997 crisis. Ninety per cent of them are village residents and they all earn minimum wages plus social-security benefits.
As of now, the cooperative has 746 shareholders, with a capitalk of Bt14 million. With the profits, it is creating a market for farmers' crops and has already bought a 1.5-rai plot near the existing office. To Yuan, the new land plot could accommodate a new factory or a shop where members' goods are displayed.
"We have come this far because of the support of our members and CBIRD. We've never been short of help," Yuan strssed.
CBIRD/NR is one of 18 centres nationwide of the PDA, founded by Mechai Viravaidya who is commonly known as the condom man and the CSR man. Since 1984, it has extended help to nearby villages under Mechai's philosophy that the poor are not beggars and they should not be offered freebies but instead be helped so that they can stand on their own feet.
Prayom Promboot, the centre's chief, said the centre first focused on agricultural training and promoted knowledge in health, nutrition, environment and household industry for 40 villages in 13 Tambons with funding from the Canadian International Development Agency (CIDA).
In cooperation with government agencies, the villagers later set up their own groups for different purposes like community savings, rice banks and fertiliser funds. For instance, in supporting the fertiliser funds, CBIRD/NR allocated 100 sacks of fertiliser to each group. In return for each sack, the group's members must repay with 11 buckets of rice. While nine buckets were taken as the fertiliser price, the fund kept two buckets. In the first year of operation, the fund collected 200 buckets or rice and later loaned the rice to needy villagers.
Later, villagers in 13 tambons created cooperatives for higher bargaining power against middlemen when it comes to fertilisers, tools and crops pricing. The centre's coverage area was later expanded to cover 90 villages. A few cooperatives were shut down, however. One saw its fuel station transferred to an oil retailer while one had to shut down a cow milk project as it was redundant to the province's programme.
"That's technical. The rest of them are doing fine and getting stronger. That's in line with our policy to make villagers stand on their own feet," Prayom said.
Under the centre's guidance, female villagers in Nong Ta Kai are creating a cooperative to sell silk fabrics, with some selected for Thai Craft's showroom in Bangkok. Like Lam Sai Yong, some companies set up factories in other villages.
To cash in on the growing sense of corporate social responsibility (CSR), PDA recently introduced a new programme to match companies engaged in good deeds with poor villages, with focus mainly on forest, chemical residues and water.
"We have 27 backers making a combined donation of Bt29 million for 33 villages," said Prahat Tafong, field director of the village development partnership project that kicked off in 2007.
The donors include Maitree Trust Fund, Novartis, Thai Beverage, Citigroup and British Chamber of Commerce. Their fund swill be allocated to villages for development, which costs Bt2,500 per head. For sustainability, each village will manage the fund through an organisation with 32 members who will decide how the funds are to be used for income generation, environment, education/youth, and health/the elderly.
The donors can propose ideas for the villages in formulating development plans. To Prahat, this will ensure their partnership and local community sustainability.
In his interview earlier, Mechai said there's no government in the world that can deliver everything to its citizens. Social contribution, like giving out money, won't help as it will not create new knowledge or enhance the poor's energy and ability. Worse, it teaches them to ask for free things.
"The poor don't have the chance to obtain loans at market rates. Businessman can give them ideas and provide the loans, to help them stand on their own feet."
German aid body changes tack
The Thai-German Institute will try another tactic to achieve its goal of promoting the use of advanced technology in small- and medium-sized plants by approaching top executives and business owners.
"Earlier, we focused on developing staff at the operating level, but the plants still failed to adopt knowledge in doing business. So we will change to enhancing the business skills of executives and owners instead," TGI director Narong Varongkriengkrai said yesterday.
Local small- and medium-sized manufacturers have not given enough importance to improving their production technology, he said.
"Even though we boost the skills of the workforce to work with new, advanced technologies, it will mean nothing unless executives see the need to make the investment and move their companies to high-value production," he said.
TGI will focus on the electrical appliances, electronics and automobile industries, he said.
Damri Sukhotanang, permanent secretary of the Industry Ministry, said small- and medium-sized manufacturers cannot produce value-added products as targeted due mainly to the lack of technology.
Those manufacturers also need to pay more attention to packaging design, which will be another way to add more value to their products.
"The Industry Ministry's departments and related institutes such as TGI and the Thailand Productivity Institute have to work in unison and give priority to upgrading original-equipment manufacturers to original-design manufacturers," he said.
The Industry Ministry approved a budget of Bt142 million for TGI to provide 50 training courses for technicians and engineers in the mould industry.
Vice Industry Minister Sorayud Petchtrakul said the mould industry was one of the important basic industries, supporting many industries including automobiles, machinery and printing.
"One main problem is that we are short of skilled technicians and engineers to support the rapid changing of technologies. If our mould industry is weak, those hi-tech countries including Japan will not look favourably on continuing to invest here," he added.
"Earlier, we focused on developing staff at the operating level, but the plants still failed to adopt knowledge in doing business. So we will change to enhancing the business skills of executives and owners instead," TGI director Narong Varongkriengkrai said yesterday.
Local small- and medium-sized manufacturers have not given enough importance to improving their production technology, he said.
"Even though we boost the skills of the workforce to work with new, advanced technologies, it will mean nothing unless executives see the need to make the investment and move their companies to high-value production," he said.
TGI will focus on the electrical appliances, electronics and automobile industries, he said.
Damri Sukhotanang, permanent secretary of the Industry Ministry, said small- and medium-sized manufacturers cannot produce value-added products as targeted due mainly to the lack of technology.
Those manufacturers also need to pay more attention to packaging design, which will be another way to add more value to their products.
"The Industry Ministry's departments and related institutes such as TGI and the Thailand Productivity Institute have to work in unison and give priority to upgrading original-equipment manufacturers to original-design manufacturers," he said.
The Industry Ministry approved a budget of Bt142 million for TGI to provide 50 training courses for technicians and engineers in the mould industry.
Vice Industry Minister Sorayud Petchtrakul said the mould industry was one of the important basic industries, supporting many industries including automobiles, machinery and printing.
"One main problem is that we are short of skilled technicians and engineers to support the rapid changing of technologies. If our mould industry is weak, those hi-tech countries including Japan will not look favourably on continuing to invest here," he added.
DSI wants Map Ta Phut inquiry
The Department of Special Investigation is seeking to bring the environmental problems in Map Ta Phut within the scope of its juridical responsibility.
The department will make a proposal to a meeting of the Special Case Commission next month, department chief Thawee Sodsong said yesterday.
The commission, set up by this government, decides which criminal cases should be treated as special cases, and instructs the department to carry out investigations.
Pol Col Thawee said the prolonged pollution problems at the Map Ta Phut industrial estate in Rayong might stem from a lack of enforcement of regulations.
The industrial area had been allowed to expand to such an extent that it had caused problems for Rayong's city plan,he said. The DSI also found the environmental problems at Map Ta Phut remained very serious, Pol Col Thawee said.
The DSI started looking into Map Ta Phut's environmental problems following complaints from local residents. A group of residents also petitioned Prime Minister Abhisit Vejjajiva about their ordeal.
Pol Col Thawee yesterday invited representatives of relevant agencies and local residents to a meeting to discuss ways to solve Map Ta Phut's environmental problems.
Noi Jaitang, a residents' representative,said the expansion of industrial factories at Map Ta Phut had affected local people's health and opportunities to earn a living.
Mr Noi said toxic contaminants in the water and soil had caused members of his family to develop cancer. His mother, his mother-in-law and his wife had died of lung cancer and eye cancer while he was suffering from respiratory disease.
Fish farm production in his neighbourhood had also suffered a decline,Mr Noi said.
Renu Wechratpimol, a biology lecturer at Silpakorn University, quoting the findings from a research study on genetic changes among the people and animals at Map Ta Phut, said high levels of abnormal genetic changes and toxic contamination had been found in samples of frogs, crabs, fish and clams collected from Map Ta Phut.
The findings clearly show the pollution at Map Ta Phut and nearby areas had reached a dangerous level, she said.
The department will make a proposal to a meeting of the Special Case Commission next month, department chief Thawee Sodsong said yesterday.
The commission, set up by this government, decides which criminal cases should be treated as special cases, and instructs the department to carry out investigations.
Pol Col Thawee said the prolonged pollution problems at the Map Ta Phut industrial estate in Rayong might stem from a lack of enforcement of regulations.
The industrial area had been allowed to expand to such an extent that it had caused problems for Rayong's city plan,he said. The DSI also found the environmental problems at Map Ta Phut remained very serious, Pol Col Thawee said.
The DSI started looking into Map Ta Phut's environmental problems following complaints from local residents. A group of residents also petitioned Prime Minister Abhisit Vejjajiva about their ordeal.
Pol Col Thawee yesterday invited representatives of relevant agencies and local residents to a meeting to discuss ways to solve Map Ta Phut's environmental problems.
Noi Jaitang, a residents' representative,said the expansion of industrial factories at Map Ta Phut had affected local people's health and opportunities to earn a living.
Mr Noi said toxic contaminants in the water and soil had caused members of his family to develop cancer. His mother, his mother-in-law and his wife had died of lung cancer and eye cancer while he was suffering from respiratory disease.
Fish farm production in his neighbourhood had also suffered a decline,Mr Noi said.
Renu Wechratpimol, a biology lecturer at Silpakorn University, quoting the findings from a research study on genetic changes among the people and animals at Map Ta Phut, said high levels of abnormal genetic changes and toxic contamination had been found in samples of frogs, crabs, fish and clams collected from Map Ta Phut.
The findings clearly show the pollution at Map Ta Phut and nearby areas had reached a dangerous level, she said.
Wednesday, September 23, 2009
World steel production rises
Global crude steel production rose to its highest level in almost a year in August, figures from the World Steel Association showed on Monday, as steel mills restarted idled capacity due to increased orders.
The $500 billion industry is slowly recovering from one of the worst downturns ever and analysts expect output to rise further in the coming months, although the market is divided over whether the capacity start up is too rapid.
Crude steel production was 106.5 million tonnes in August, after rising steadily since April and up from 103.9 million tonnes in July, despite a 5.5% drop compared with August 2008.
"History tells you that demand tends to pick up faster than supply into an upturn," said analyst Jim Lennon at Macquarie Bank, referring to the highest monthly output since September 2008,when production totalled 107.9 million tonnes.
Output in China, the world's biggest producer and consumer of the metal,rose to 52.3 million tonnes in August,up 22% year-on-year and the highest ever monthly figure.
"The concern in the steel industry is that there is still overcapacity in the system and therefore there is a potential to oversupply the market.... I don't think there's any evidence of the steel mills increasing supply too fast at the moment," Lennon said.
But last week Mel Wilde, chairman of UK-based International Steel Trade Association (ISTA), said producers were "overfeeding the market" even though demand remained weak.
ArcelorMittal, the world's top steelmaker, does not agree. Chairman and chief executive Lakshmi Mittal, said last week he did not believe capacity restarts were taking place too soon.
In August, almost all the major steelproducing countries, including China,Japan, Germany, the US, Brazil and Russia reached their highest monthly output this year.
But for the first eight months of the year output remained 18.1% lower at 759.5 million tonnes compared with the same period last year.
Output in Europe and North America dropped by 32.1 and 38.7% year-onyear respectively in August. In the European Union output dropped compared with July, as Italy's production almost halved.
Production in the Middle East, where demand was buoyant last year due to booming infrastructure spending, rose by 14.9% in August compared with same month last year.
The $500 billion industry is slowly recovering from one of the worst downturns ever and analysts expect output to rise further in the coming months, although the market is divided over whether the capacity start up is too rapid.
Crude steel production was 106.5 million tonnes in August, after rising steadily since April and up from 103.9 million tonnes in July, despite a 5.5% drop compared with August 2008.
"History tells you that demand tends to pick up faster than supply into an upturn," said analyst Jim Lennon at Macquarie Bank, referring to the highest monthly output since September 2008,when production totalled 107.9 million tonnes.
Output in China, the world's biggest producer and consumer of the metal,rose to 52.3 million tonnes in August,up 22% year-on-year and the highest ever monthly figure.
"The concern in the steel industry is that there is still overcapacity in the system and therefore there is a potential to oversupply the market.... I don't think there's any evidence of the steel mills increasing supply too fast at the moment," Lennon said.
But last week Mel Wilde, chairman of UK-based International Steel Trade Association (ISTA), said producers were "overfeeding the market" even though demand remained weak.
ArcelorMittal, the world's top steelmaker, does not agree. Chairman and chief executive Lakshmi Mittal, said last week he did not believe capacity restarts were taking place too soon.
In August, almost all the major steelproducing countries, including China,Japan, Germany, the US, Brazil and Russia reached their highest monthly output this year.
But for the first eight months of the year output remained 18.1% lower at 759.5 million tonnes compared with the same period last year.
Output in Europe and North America dropped by 32.1 and 38.7% year-onyear respectively in August. In the European Union output dropped compared with July, as Italy's production almost halved.
Production in the Middle East, where demand was buoyant last year due to booming infrastructure spending, rose by 14.9% in August compared with same month last year.
CHANGES WILL DETER INVESTORS, JETRO WARNS
Japanese investors would shift their investment to other attractive countries if the Thai government amends the heavy industrial development plan, the head of the Japan External Trade Organisation (Jetro) in Bangkok, said.
Jetro president Munenori Yamada said Japanese investors, particularly steelmakers, will consider other potential countries for their investment instead of Thailand.
Last week, the government ordered the National Economic and Social and Development Board to revise the Kingdom's industrial development master plan, to clarify its long-term direction, concerning the Southern Seaboard.
The possibility of revision has created doubts among foreign investors.
Two giant steelmakers from Japan - Nippon Steel and JFE - have shown strong interest to invest in the Kingdom.
Yamada suggested that under the revision plan, Thailand should shift its focus to value-added or knowledge-based development to compete with other countries, particularly those in the neighbourhood.
The revised industrial development plan should be based on high technology sophisticated to serve as integrated industrial base for large companies, he added.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, said that investors have been worried about the unstable policies of the government. The government must have clear measures for promoting industrial development so that foreign investors can decide whether they would want to invest in the Kingdom.
To ensure that the government's industrial development policy is not changed by each cabinet, the development plan should be approved by Parliament for long-term implementation, Santi said.
In addition, he said the industrial development plans in many areas such as the Southern Seaboard, the Eastern Seaboard, and the Northeast are still needed for the long-term development. The industrial sector is one of the key sectors, employing a million workers in the country.
Jetro president Munenori Yamada said Japanese investors, particularly steelmakers, will consider other potential countries for their investment instead of Thailand.
Last week, the government ordered the National Economic and Social and Development Board to revise the Kingdom's industrial development master plan, to clarify its long-term direction, concerning the Southern Seaboard.
The possibility of revision has created doubts among foreign investors.
Two giant steelmakers from Japan - Nippon Steel and JFE - have shown strong interest to invest in the Kingdom.
Yamada suggested that under the revision plan, Thailand should shift its focus to value-added or knowledge-based development to compete with other countries, particularly those in the neighbourhood.
The revised industrial development plan should be based on high technology sophisticated to serve as integrated industrial base for large companies, he added.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, said that investors have been worried about the unstable policies of the government. The government must have clear measures for promoting industrial development so that foreign investors can decide whether they would want to invest in the Kingdom.
To ensure that the government's industrial development policy is not changed by each cabinet, the development plan should be approved by Parliament for long-term implementation, Santi said.
In addition, he said the industrial development plans in many areas such as the Southern Seaboard, the Eastern Seaboard, and the Northeast are still needed for the long-term development. The industrial sector is one of the key sectors, employing a million workers in the country.
Saturday, September 19, 2009
Permit approvals could face court test
The government is on a legal collision course with environmental and community activists who claim recent approvals of industrial projects broke the law.
The possibility of a court challenge has left investors concerned about the future of several costly ventures that could be subject to stricter environmental and health impact assessments.
Protesters rallied in Rayong last week after the Industrial Estate Authority of Thailand (IEAT) and the Industrial Works Department approved operating permits for projects that had already completed environmental impact assessments (EIA).
The protesters say the permits should be cancelled as they violate Section 67 of the 2007 Constitution, which governs industries deemed harmful to the environment and public health.
Prime Minister Abhisit Vejjajiva yesterday chaired a meeting with the protesters to seek a solution to the impasse.
Sorayud Petchtrakul, an adviser to the Industry Minister, said the permit approvals were made in line with a legal opinion of the Council of State. The government's legal adviser said that since guidelines to accommodate Section 67 were still not in place, officials were unable to revoke the permits.
"For the approved permits, the PM said the public has the right to seek judicial support if they disagree with the officials," said Mr Sorayud, who attended the meeting.
"We do not have the authority to revoke permits because investors had done everything in accordance with existing laws. If we revoke the permits, the investors will sue us."
Suthi Atchasai, a leader of the People's Eastern Network, said the group had filed a case with the Administrative Court against the officials responsible for permit approvals, saying the permits should be rescinded and no new ones issued.
"We believe the approvals were against the law and need to be annulled," he said."As well, new permits need to wait for Section 67 guidelines to ensure maximum rights of villagers are guaranteed."
Until the guidelines are released and an independent body is formed to enforce them, investors must wait, or protesters would do everything possible to disrupt operations, said Mr Suthi.
But Mr Sorayud insists that the remaining projects seeking permits would continue to be processed as normal.
"The PM does not want to see a halt in investment, so we're going ahead with the permits. However, public opinion is welcome in the permit consideration process if people see any projects about which we need to be careful," he said.
The dispute is worrisome for investors,said Chainoi Puankosoom, chief executive of PTT Aromatics and Refining (PTTAR). Problems have arisen, he said,because of unclear mechanisms for dealing with environmental protection.
"We are doing everything according to existing law so we should obtain the permits," he said."If there is anything we should do more to live in harmony with communities, we are willing to do it. The government should also accelerate clear guidelines to improve confidence in new investment."
PTTAR is awaiting a permit for its US$180-million condensate residue upgrade in Map Ta Phut. Construction was completed in March. It says it faces an opportunity loss of $130,000 per day.
A total of 55 investment projects worth 200 billion baht are awaiting permit approvals. A PTT gas-separation plant is at the top of the list, along with investments by Thai Asahi and Aditya Birla.
New projects that have yet to obtain EIA approval and fall under the harmful list would have to wait for Section 67 guidelines before seeking permits.
The Industry Ministry put eight industries on the harmful list in a ministerial announcement released last Monday.They will need EIAs, health impact assessment (HIA) approval and public hearings, to be overseen by a yet-to-be formed independent organisation.
Mr Sorayud could not give a timeframe for the formation of the new body but said that in any case, any industries creating high emissions would need extra scrutiny in order to control pollution.
The possibility of a court challenge has left investors concerned about the future of several costly ventures that could be subject to stricter environmental and health impact assessments.
Protesters rallied in Rayong last week after the Industrial Estate Authority of Thailand (IEAT) and the Industrial Works Department approved operating permits for projects that had already completed environmental impact assessments (EIA).
The protesters say the permits should be cancelled as they violate Section 67 of the 2007 Constitution, which governs industries deemed harmful to the environment and public health.
Prime Minister Abhisit Vejjajiva yesterday chaired a meeting with the protesters to seek a solution to the impasse.
Sorayud Petchtrakul, an adviser to the Industry Minister, said the permit approvals were made in line with a legal opinion of the Council of State. The government's legal adviser said that since guidelines to accommodate Section 67 were still not in place, officials were unable to revoke the permits.
"For the approved permits, the PM said the public has the right to seek judicial support if they disagree with the officials," said Mr Sorayud, who attended the meeting.
"We do not have the authority to revoke permits because investors had done everything in accordance with existing laws. If we revoke the permits, the investors will sue us."
Suthi Atchasai, a leader of the People's Eastern Network, said the group had filed a case with the Administrative Court against the officials responsible for permit approvals, saying the permits should be rescinded and no new ones issued.
"We believe the approvals were against the law and need to be annulled," he said."As well, new permits need to wait for Section 67 guidelines to ensure maximum rights of villagers are guaranteed."
Until the guidelines are released and an independent body is formed to enforce them, investors must wait, or protesters would do everything possible to disrupt operations, said Mr Suthi.
But Mr Sorayud insists that the remaining projects seeking permits would continue to be processed as normal.
"The PM does not want to see a halt in investment, so we're going ahead with the permits. However, public opinion is welcome in the permit consideration process if people see any projects about which we need to be careful," he said.
The dispute is worrisome for investors,said Chainoi Puankosoom, chief executive of PTT Aromatics and Refining (PTTAR). Problems have arisen, he said,because of unclear mechanisms for dealing with environmental protection.
"We are doing everything according to existing law so we should obtain the permits," he said."If there is anything we should do more to live in harmony with communities, we are willing to do it. The government should also accelerate clear guidelines to improve confidence in new investment."
PTTAR is awaiting a permit for its US$180-million condensate residue upgrade in Map Ta Phut. Construction was completed in March. It says it faces an opportunity loss of $130,000 per day.
A total of 55 investment projects worth 200 billion baht are awaiting permit approvals. A PTT gas-separation plant is at the top of the list, along with investments by Thai Asahi and Aditya Birla.
New projects that have yet to obtain EIA approval and fall under the harmful list would have to wait for Section 67 guidelines before seeking permits.
The Industry Ministry put eight industries on the harmful list in a ministerial announcement released last Monday.They will need EIAs, health impact assessment (HIA) approval and public hearings, to be overseen by a yet-to-be formed independent organisation.
Mr Sorayud could not give a timeframe for the formation of the new body but said that in any case, any industries creating high emissions would need extra scrutiny in order to control pollution.
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