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.
Thursday, November 19, 2009
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.
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