Tuesday, August 18, 2009

EGAL HURDLE DELAYS PROJECT APPROVALS

       Authorities have further delayed the approval of 16 petrochemical, power-plant and other industrial projects in Rayong province worth a combined Bt60 billion.
       Industry Ministry permanent screatary Damir Sukhotanang said a decision on whether these schemes should go ahead would be made at the public-private partnership meeting. The forum, sheduled for next Wednesday, will be chaired by the prime minister.
       Earlier, the ministry was due to issue licences for these schemes in the Map Tha Phut Industrial Estate and other areas around Rayong this week.
       However, it delayed the issue of licences, due to concerns about the legality of the interpretation of a recently issued Royal Decree, which empowers the agency to give the green light to projects that have already passed an environmental-impact assessment (EIA).
       The ministry's Industrial Works Department (IWD) was expected to clear the legal hurdle within a week.
       In addition, the Industrial Estate Authority of Thailand (IEAT) is also awaiting approval for three heavy-industry projects: a Bt1.8-billion project by Siam Tinplate, a Bt1.3-billion project by PTT Aromatics and Refining and a Bt270-million petrochemical project by the Aditya Birla Group.
       "We [the IWD and the IEAT] need to head in the same direction and treat investors on an equal basis," said IEAT governor Monta Pronootnorapal.
       The Consititution's Article 67 stipulates industrial projects are required to pass health-impact assessments (HIA) before receiving licences.
       Earlier, both the IWD and the IEAT thought they could give operating and construction licences to projects that had already passed the more comprehensive EIA, because the HIA was part of the EIA process.
       Meanwhile, the Federation of Thai Industries (FTI) will ask the government to clarify laws and regulations at both local and the central government levels, so that industrial schemes that impact the environment can be managed more efficiently.
       FTI vice chairman Payungsak Chartsutipol said most delays in investment projects were due to unclear laws and regulations.
       "It's necessary to clarify the rules and regulations as soon as possible, because foreign in vestors don't like grey areas," he said.

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