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.
Wednesday, October 28, 2009
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.
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