Channel 0118 Industrial Estate | Industrial

Government to boost benefits for companies locating regional operating headquarters in Thailand

2010-02-07T03:36:00.001-08:00

Dep Minister of Finance Pradit Phataraprasit to lead an Open Forum on Wed 10th Feb to solicit direct input from private sector on how government can help them operate more competitively in the region

Deputy Minister of Finance Pradit Phataraprasit, today, (Wednesday 3 February) announced that the government is formulating plans to boost tax and non-tax benefits to companies that locate their regional operating headquarters in Thailand.

“We aim to reinforce Thailand’s position in the region as an important manufacturing and services hub,” said Deputy Finance Minister Pradit who chairs a committee charged with developing a set of recommendations that can make Thailand a more attractive location for the regional operating headquarters of companies.

He said, “The establishment of a regional headquarters in Thailand by giant foreign companies can generate enormous benefits for our country and accelerate economic growth. It results in the location in Thailand of many high-salaried expatriate managers; it means more demand for housing, more shopping and other spending, and more business for hotels and restaurants with a greater number of international events being organized in Thailand. It also means that Thai staff have more opportunity to become regional managers with much higher salaries and responsibilities.”

Mr. Pradit said that he is organizing an Open Forum meeting on Wednesday 10th February at the Queen Sirikit National Convention Center for the private sector to give direct input to him on how they believe Thailand could become more attractive as a regional operating headquarters for their companies.

“I want this to be a collaborative effort that gets the best ideas on the table, and to weed out what isn’t important to the private sector,” said Mr. Pradit.

He said that, “multiple government agencies are working together and all key people responsible for developing and submitting these recommendations for Cabinet approval will be present at the session to listen to the views of the private sector, including the Board of Investment, the Bank of Thailand, the Revenue Department, the Fiscal Policy Office, as well as the Federation of Thai Industries, and the Thai Chamber of Commerce, in addition to himself and the Permanent Secretary of the Ministry of Finance.”
HOW TO REGISTER TO ATTEND

Attendance is free. To book a place, please email or fax representatives’ Name, Title, and Company to ROHforum@gmail.com , or fax: 02-664 9515, Attention: Khun Pairoj. Reservations should be made no later than Monday 8th February. Seating is limited and available on a first come, first served basis. Presentations will be in English and Thai.

BEA Completes Sale and Purchase of BEA Canada and ICEA with ICBC

2010-02-05T23:03:00.001-08:00

The Bank of East Asia, Limited (“BEA”) today announces that the agreements, which it reached with the Industrial and Commercial Bank of China Limited (“ICBC”) on 4th June, 2009 regarding the sale and purchase of The Bank of East Asia (Canada) (“BEA Canada”) and ICEA Finance Holdings Limited (“ICEA”) have been completed, following satisfaction of all pre-agreed conditions. BEA has completed the disposal of its 70% interest in BEA Canada to ICBC for a total consideration of CAD80,249,120 (equivalent to approximately HK$589.2 million). Meanwhile, BEA has also concluded its acquisition of ICBC’s remaining 75% shareholding in ICEA, for a total consideration of HK$372,154,045. The two transactions are inter-conditional, and with their completion today, ICEA immediately becomes a wholly-owned subsidiary of BEA, and BEA Canada ceases to be a subsidiary of the BEA Group. BEA and ICBC will continue to co-operate in the management and operation of BEA Canada and a shareholders agreement has been entered into between the three parties governing their respective rights and obligations. Commenting on the acquisition of ICEA, Dr. David K.P. Li, Chairman & Chief Executive of BEA, says: “We are pleased to welcome the customers, business partners, and staff of ICEA to the BEA Group. We look upon this acquisition as a prime opportunity to enlarge our customer base and to extend our market reach in the securities business. We are confident that with BEA’s expertise and resources to provide its customers with a broad range of financial services to cater for their diverse needs, ICEA will go from strength to strength.” ICEA was established in 1998 through the joint partnership between ICBC and BEA. The company principally engages in the provision of securities broking, underwriting, margin financing, and futures and options contracts dealing services.

PTT Chemical and GE sign gas turbine service agreement

2010-01-30T01:51:00.001-08:00

PTT Chemical Public Company Limited, Thailand’s largest chemical producer and a regional leader in the petrochemical industry, has signed a service agreement with GE (NYSE: GE) in Singapore to ensure the long-term reliability of nine GE gas turbines at PTT Chemical’s site in Map Ta Phut Industrial Estate, Rayong Province, Thailand.

The 13-year Contractual Service Agreement (CSA) worth US$46.1 million or approximately Baht 1,521 million covers the supply of parts, repairs and field services for planned and unplanned outages for gas turbine-generators and accessory equipment, along with performance guarantees.

Veerasak Kositpaisal, President and CEO of PTT Chemical said, “Through this agreement, GE guarantees the continuing reliability and efficiency of the gas turbines, which improves our efficiency and security as well as enables us to maintain our petrochemical production schedule. The CSA also helps us to effectively manage our maintenance budget over the life of the agreement.”

“While we have received equipment orders from PTT Chemical in the past, this marks our first CSA with the company,” said Kovit Kantapasara., GE Energy Country Executive for Thailand and Indochina. “We hope to build on this agreement to provide similar services to other companies in the PTT Group.” Overall, GE has supplied more than 20 gas turbines to the petrochemical business of the PTT Group.

PTT Chemical is a diversified and integrated chemical producer offering a wide variety of petrochemical and chemical products. Its product portfolio includes ethylene and propylene, collectively called olefins, downstream derivatives such as Polymers and Ethylene Oxide and Ethylene Glycol, and oleochemicals. The company’s gas-based plants have a total annual capacity of 2,888,000 tons of olefins, making it Thailand’s largest olefins producer and the second largest in all of Asia.

GE is a diversified global infrastructure, finance and media company that's built to meet essential world needs. GE Energy is one of the world’s leading suppliers of power generation and energy delivery technologies providing integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

Stimulus for Thailand’s hospitality industry

2010-01-24T07:01:00.000-08:00

The Office of Small and Medium Enterprises Promotion (OSMEP), Impact Exhibition Management and Thailand Restaurant News magazine are inviting local and international players in the hospitality business, and entrepreneurs interested in this sector, to Thailand International Restaurant and Bar 2010 at Impact Muang Thong Thani in June 2010.

This international expo is designed to raise the standard of Thailand’s hospitality industry and giving encouragement and support to new entrepreneurs now that the economy is recovering.

Yuthasak Supasorn, OSMEP’s Director-General pointed out that the restaurant and service industry was one of Thailand’s vital sectors, with a value of two hundred thousand million baht each year, and that new business ventures were continually opening.

“As the economy continues to improve, everyone involved in this sector needs to be ready to take advantage of emerging opportunities,” he said.

“However, sustainable success in this business depends on many factors, such as location, financial support, market insight, product and service quality, customer base and network of business alliances. The Thailand International Restaurant and Bar 2010 has been organised to give players in this sector, whether they’re actual or potential, the support they need to go for that success.”

Pornphan Bulner, Assistant Director Exhibition Project of Impact Exhibition Management, explained that the expo would integrate products, services and technologies relating to restaurants, hotels, bars, coffee shops and catering to meet the needs of entrepreneurs.

“It will showcase raw materials, equipment and machinery, as well as new techniques and skill trainings for all roles in the hospitality industry. At the same time it will provide a platform for negotiation, networking and exchanging information,” she said.

“At least 150 local and international companies will exhibit their products and services on a combined space of 10,000 square meters. We’re expecting to receive more than 10,000 Thai and foreign visitors -- owners, managers, suppliers and business consultants, as well as people who are interested in running their own business.”

Thailand International Restaurant and Bar 2010 will be arranged in three zones: Cuisine for Change, World of Wine & Spirits, and Coffee (Tea & Bakery) Culture. It will also include seminars, demonstrations of recipes and cooking techniques, competitions for chefs, sommeliers and bartenders and an Asian barista championship.

Chatthaporn Yolao, Managing Director of Thailand Restaurant News magazine, said that the event would present new food trends and the latest technologies as business opportunities, and marketing information from experts. Thai SME’s would also benefit from the new relationships they make with other entrepreneurs and service providers.

“We are hoping that Thailand International Restaurant and Bar 2010 will be instrumental in raising the standard of the food and beverage and hospitality industries in Thailand, and in doing so benefit the Thai economy,” she said.

Investment-Grade Composite Spread Tightens To 209 Basis Points

2009-12-15T19:11:00.001-08:00

Standard & Poor's investment-grade composite spread tightened yesterday to 209 basis points (bps), while its speculative-grade counterpart compressed to 653 bps. By rating, the 'AA' and 'A' spreads tightened one basis point each to 144 bps and 180 bps, respectively, and 'BBB' tightened 3 bps to 264 bps. The 'BB' spread tightened 5 bps to 484 bps, 'B' compressed 6 bps to 654 bps, and 'CCC' tightened 15 bps to 1,040 bps.

By industry, financial institutions, banks, and industrials tightened 4 bps each to 366 bps, 288 bps, and 336 bps, respectively. Utilities and telecommunications followed, tightening 2 bps each to 212 and 318 bps, respectively.

Despite material tightening since their record highs in December 2008, the speculative-grade spread remains range-bound within a default cycle, and the investment-grade spread continues to face pressure from financial institutions and banks. In addition, speculative-grade defaults continue to accelerate, as does the preponderance of credit downgrades. Because of these factors, we expect spreads to remain at their elevated levels for some time as investors, the credit markets, and the economy cautiously tread through the current recessionary period.

ROLLS-ROYCE INCREASES SINGAPORE INVESTMENT TO SUPPORT CONTINUED GROWTH

2009-12-15T05:13:00.001-08:00

Rolls-Royce, the global power systems company, announced plans to build a new wide chord fan blade (WCFB) factory in Singapore. The factory will be located at the Group’s Seletar Campus alongside the previously announced ‘Facility of the Future’, which will test and assemble Trent aero engines.

Total investment in the Rolls-Royce Seletar Campus, including investment in the WCFB factory, will exceed S$700million (around £300 million). It will create approximately 500 new jobs when fully operational, bringing the number of people employed by the Group in Singapore to around 2,000. Construction of the Facility of the Future and all other elements of the campus, including a regional training centre, will begin in the first quarter of 2010.

The new factory will be the first outside the UK to manufacture Rolls-Royce hollow titanium WCFBs, a technology which has played a key role in the success of the Trent engine family. It will provide additional capacity to the Group’s Barnoldswick factory in the UK, which Rolls-Royce separately announced will be receiving further investment.

The Group’s growing global order book totalled £55.5 billion at the end of 2008, of which 44 per cent was generated by customers in the Asia Pacific region. The Group’s success in global markets generates the need for additional capacity to support long-term growth and an expanding customer base.

The decision to locate the new facility in Singapore has been determined by four strategic considerations: the benefits of locating major facilities close to key customers; the business continuity benefits that will arise from locating critical component manufacturing in two locations; the highly competitive skills and productivity levels in Singapore, exemplified by the Group’s joint venture partnerships with Singapore Airlines Engineering Company; and the support provided by the Singapore Economic Development Board (EDB) and Jurong Town Corporation (JTC).

Sir John Rose, Rolls-Royce Chief Executive, commented: “Singapore has become a vitally important centre for the Group’s operations and this latest investment in wide chord fan blade capability reflects our continuing confidence in Singapore as a place to locate high value-added manufacturing. I am particularly pleased that we are receiving the support of the Singapore EDB with whom we already have a very strong relationship.”

Mr Leo Yip, Chairman EDB, commented: "We are delighted that Rolls-Royce has chosen Singapore for the manufacture of Wide Chord Fan Blades. This, together with Rolls-Royce's Trent aero engine assembly and test facility at Seletar Aerospace Park, is a strong vote of confidence in Singapore's capabilities to be a home for high-value manufacturing and development activities. The Rolls-Royce campus taking shape at Seletar reinforces our position as a leading global aerospace hub, and reflects the very strong partnership between Rolls-Royce and Singapore.”
NOTES TO EDITOR

1. Rolls-Royce is a global business, providing and supplying integrated power systems for use on land, at sea and in the air. The Group has established a strong position in civil aerospace, defence aerospace, marine and energy markets.

2. Rolls-Royce employs around 38,000 skilled people in offices, manufacturing and service facilities in 50 countries. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.

3. Businesses are headquartered in the UK, US and Singapore. This global presence allows the Group to deliver benefits to its partners, in addition to being able to access long-term international growth opportunities with its technology, presence, partnerships and people.

4. Singapore is a key business hub for the Group. It is home to the global headquarters of the Group’s Marine business and the regional headquarters of its Asian Energy business. The Group’s Advanced Technology Centre and Procurement office is also located in Singapore and handles the management of suppliers in South Korea, Taiwan, Malaysia, India and South East Asia.

5. Rolls-Royce is developing its Facility of the Future, a Trent aero engine testing and assembly facility, at its new Seletar Campus in the Seletar Aerospace Park. It will be the most modern Rolls-Royce production engine assembly and test facility for large commercial aero engines, and the Group’s first in Asia.

6. Rolls-Royce has established a number of highly successful joint venture partnerships in Singapore, primarily with Singapore Airlines Engineering Company Limited (SIAEC). These include Singapore Aero Engine Services Limited (SAESL) and International Engine Components Overhaul (IECO), both of which provide services to major regional and global carriers.

7. The Singapore Economic Development Board is the lead government agency responsible for planning and executing strategies to enhance Singapore’s position as a global business centre and grow the Singapore economy. The EDB’s support for the Rolls-Royce Seletar Campus includes development grants, training support and the coordination of Singapore government agencies that enabled efficient and focussed discussions through the decision process.

8. Rolls-Royce has unique capability in the production of hollow WCFBs, which are critical components used in fans for civil and military engines and central to the performance of the engine.

9. The Group’s annual underlying revenues were £9.1 billion in 2008, 52 per cent of which came from services revenues. The firm and announced order book at the end of 2008 stood at £55.5 billion, providing visibility of future levels of activity.

10. The Group has invested £1.4 billion in capital projects over the last five years and £3.7 billion in research and development (R&D). In 2008, Rolls-Royce and its partners invested £885 million in R&D, two thirds of which had the objective of further improving the environmental aspects of its products, in particular the reduction of emissions.

11. Research and development is carried out in facilities in the UK, Canada, Germany, Singapore, the US and Scandinavia and the Group has particularly strong relationships with the 27 Rolls-Royce University Technology Centres worldwide.
Rolls-Royce celebrates 20 years in Thailand

In 2009, Rolls-Royce celebrates its 20th anniversary of business achievement in Thailand. Rolls-Royce is a global business, providing integrated power systems for use on land, at sea and in the air in Thailand for over forty years and has been based in Thailand since 1989. Rolls-Royce has established a strong position in Thailand in the areas of civil aerospace, defence aerospace, marine and energy. Rolls-Royce has a broad customer base comprising government agencies, commercial airlines, public utilities, pipeline operators and energy customers. Today there are over 300 Rolls-Royce engines in service in Thailand. Rolls-Royce is committed to working in Thailand and supporting the country through investment, innovation and education. In 1996 Rolls-Royce funded an engine test cell for Thai Airways International at Don Muang airport, and continues to support the development of Thai society through on-going corporate social responsibilities programmes. Rolls-Royce is extremely proud of its long association with the Kingdom of Thailand and wishes to continue this partnership for many years.
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HEMARAJ - 9 MONTHS 2009 NET PROFIT OF BAHT 423 MILLION

2009-11-19T06:45:00.001-08:00

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.

BANPU SETS BT15.5-BN INVESTMENT PLAN FOR THE NEXT SIX YEARS

2009-11-12T22:49:00.000-08:00

       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.

SCREEN PRINTERS AIM TO ENHANCE TECHNOLOGY

2009-11-08T04:48:00.001-08:00

       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.

STRIKING AN ACCEPTABLE BALANCE

2009-11-04T06:04:00.000-08:00

       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."

The long march for environmental justice

2009-11-04T06:02:00.000-08:00

       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.

SICHUAN TENGZHONG BUYS 80% STAKE IN GM'S HUMMER UNIT

2009-10-28T20:26:00.002-07:00

       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.

CABINET TO MULL PROPOSAL ON ENVIRONMENT WATCHDOG

2009-10-28T20:26:00.001-07:00

       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.

PRIVATE SECTOR WANTS RAYONG A SPECIAL ZONE

2009-10-20T21:24:00.001-07:00

       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.

NO ORGANIC LAW FOR PROJECTS UNTIL MID-2010

2009-10-14T22:01:00.000-07:00

       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."

MINISTRY SEEK "FRIENDLIER" REGULATIONS

2009-10-13T05:58:00.001-07:00

       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.

STRANDED COMPANIES CALL FOR PERMISSION TO PROCEED WITH STALLED MAP TA PHUT PROJECTS

2009-10-11T23:20:00.000-07:00

       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.

JAPANESE VOICE INVESTMENT FEARS

2009-10-09T22:20:00.001-07:00

       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.

OIC MOVES TO REVEAL HEALTH, ENVIRONMENT DATA TO PUBLIC

2009-10-07T21:16:00.000-07:00

       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.

REACHING OUT TO LOCAL COMMUNITIES

2009-09-27T21:50:00.000-07:00

       At first glance, the shoe manufacturing factory of Lamsaiyong Population and Community Development Cooperative seems disorganised with work being done here and there. Yet, this factory is the life of the cooperative, as it makes sufficient profits for the cooperative's community activities and creates jobs for villagers.
       The she-parts manufacturing business generated a profit of Bt2.2 million in 2008 fiscal year ending March 31, compared to Bt118,763 in the previous year. In 1997, the profit was Bt2.4 million or 8.04 per cent of the Bt30-million revenue.
       "I don't know it we would make a profit this year, as orders are affected by the political turbulence and oil prices. Still, this helps meet our goal of creating jobs for the locals. I'm also now open to new ideas to strengthen the cooperative," chairman Yuan Manprakhon said.
       The 70-year-old chairman recelled the days prior to 1989 when tambon Lam Sai Yong in Nang Rong district was nearly deserted, like other places across the country, as young adults left the village and only the elderly and children remained.
       The village today is more lively and independent thanks to Lamsaiyong Population and Community Development Cooperative, which brought the factory to the village in 1992. The plant now generates the highest profit to the cooperative, which also extends farming loans, conducts crop-trading and receives deposits.
       "our focus then was how to help members' children, who had to leave the village, to find jobs. We must have something here so that they could stay hers," said Cooperative chairman Yuan Manprakhon. "Our original businesses - loan extension, fertiliser trading, crops trading, and deposits - could do little in easing unemployment."
       Yuan has been involve with the cooperative since 1989 when it was started. He recalled the cooperative's beginnings under the guidance of the Population and Community Development Association (PDA), which launched the Community-Based Integrated Rural Development Project (CBIRD)/Nang Rong in the district.
       The non-profit organisation first arrived in the district in the 1980s to strengthen local communities through traiining and activities to improve their health and living quality. When CBIRD's funding dried up, villagers scrambled to find out how to preserve the knowledge and stand on their own feet. The cooperative was established the same year, with 140 members who had to pay at least Bt50 for 5 shares. With a seed capital of only Bt7,000, the cooperative had limitations in its lending activities and paddy rice trading and first thought about turning the village into a business site.
       Bata Thailand showed them the light by offering free training to 10 staff, who returned to train others. With the staff ready, Btat transferred 35 sewing machines to the cooperative, which built up a plant on its own land with help from CBIRD's Bt150,000 financing.
       Shortly after that, the cooperative approached Bata to purchase the machine for Bt5.7 million, with borrowing from CBIRD. It repaid the debt a year ahead of schedule with profits from the factory, which mainly produces school shoe tops and para floor slippers for Bata and its marketing arm in Malaysia. The plant now employs 170 workers, down from 210 prior to the 1997 crisis. Ninety per cent of them are village residents and they all earn minimum wages plus social-security benefits.
       As of now, the cooperative has 746 shareholders, with a capitalk of Bt14 million. With the profits, it is creating a market for farmers' crops and has already bought a 1.5-rai plot near the existing office. To Yuan, the new land plot could accommodate a new factory or a shop where members' goods are displayed.
       "We have come this far because of the support of our members and CBIRD. We've never been short of help," Yuan strssed.
       CBIRD/NR is one of 18 centres nationwide of the PDA, founded by Mechai Viravaidya who is commonly known as the condom man and the CSR man. Since 1984, it has extended help to nearby villages under Mechai's philosophy that the poor are not beggars and they should not be offered freebies but instead be helped so that they can stand on their own feet.
       Prayom Promboot, the centre's chief, said the centre first focused on agricultural training and promoted knowledge in health, nutrition, environment and household industry for 40 villages in 13 Tambons with funding from the Canadian International Development Agency (CIDA).
       In cooperation with government agencies, the villagers later set up their own groups for different purposes like community savings, rice banks and fertiliser funds. For instance, in supporting the fertiliser funds, CBIRD/NR allocated 100 sacks of fertiliser to each group. In return for each sack, the group's members must repay with 11 buckets of rice. While nine buckets were taken as the fertiliser price, the fund kept two buckets. In the first year of operation, the fund collected 200 buckets or rice and later loaned the rice to needy villagers.
       Later, villagers in 13 tambons created cooperatives for higher bargaining power against middlemen when it comes to fertilisers, tools and crops pricing. The centre's coverage area was later expanded to cover 90 villages. A few cooperatives were shut down, however. One saw its fuel station transferred to an oil retailer while one had to shut down a cow milk project as it was redundant to the province's programme.
       "That's technical. The rest of them are doing fine and getting stronger. That's in line with our policy to make villagers stand on their own feet," Prayom said.
       Under the centre's guidance, female villagers in Nong Ta Kai are creating a cooperative to sell silk fabrics, with some selected for Thai Craft's showroom in Bangkok. Like Lam Sai Yong, some companies set up factories in other villages.
       To cash in on the growing sense of corporate social responsibility (CSR), PDA recently introduced a new programme to match companies engaged in good deeds with poor villages, with focus mainly on forest, chemical residues and water.
       "We have 27 backers making a combined donation of Bt29 million for 33 villages," said Prahat Tafong, field director of the village development partnership project that kicked off in 2007.
       The donors include Maitree Trust Fund, Novartis, Thai Beverage, Citigroup and British Chamber of Commerce. Their fund swill be allocated to villages for development, which costs Bt2,500 per head. For sustainability, each village will manage the fund through an organisation with 32 members who will decide how the funds are to be used for income generation, environment, education/youth, and health/the elderly.
       The donors can propose ideas for the villages in formulating development plans. To Prahat, this will ensure their partnership and local community sustainability.
       In his interview earlier, Mechai said there's no government in the world that can deliver everything to its citizens. Social contribution, like giving out money, won't help as it will not create new knowledge or enhance the poor's energy and ability. Worse, it teaches them to ask for free things.
       "The poor don't have the chance to obtain loans at market rates. Businessman can give them ideas and provide the loans, to help them stand on their own feet."

German aid body changes tack

2009-09-27T21:49:00.000-07:00

       The Thai-German Institute will try another tactic to achieve its goal of promoting the use of advanced technology in small- and medium-sized plants by approaching top executives and business owners.
       "Earlier, we focused on developing staff at the operating level, but the plants still failed to adopt knowledge in doing business. So we will change to enhancing the business skills of executives and owners instead," TGI director Narong Varongkriengkrai said yesterday.
       Local small- and medium-sized manufacturers have not given enough importance to improving their production technology, he said.
       "Even though we boost the skills of the workforce to work with new, advanced technologies, it will mean nothing unless executives see the need to make the investment and move their companies to high-value production," he said.
       TGI will focus on the electrical appliances, electronics and automobile industries, he said.
       Damri Sukhotanang, permanent secretary of the Industry Ministry, said small- and medium-sized manufacturers cannot produce value-added products as targeted due mainly to the lack of technology.
       Those manufacturers also need to pay more attention to packaging design, which will be another way to add more value to their products.
       "The Industry Ministry's departments and related institutes such as TGI and the Thailand Productivity Institute have to work in unison and give priority to upgrading original-equipment manufacturers to original-design manufacturers," he said.
       The Industry Ministry approved a budget of Bt142 million for TGI to provide 50 training courses for technicians and engineers in the mould industry.
       Vice Industry Minister Sorayud Petchtrakul said the mould industry was one of the important basic industries, supporting many industries including automobiles, machinery and printing.
       "One main problem is that we are short of skilled technicians and engineers to support the rapid changing of technologies. If our mould industry is weak, those hi-tech countries including Japan will not look favourably on continuing to invest here," he added.

DSI wants Map Ta Phut inquiry

2009-09-27T21:48:00.001-07:00

       The Department of Special Investigation is seeking to bring the environmental problems in Map Ta Phut within the scope of its juridical responsibility.
       The department will make a proposal to a meeting of the Special Case Commission next month, department chief Thawee Sodsong said yesterday.
       The commission, set up by this government, decides which criminal cases should be treated as special cases, and instructs the department to carry out investigations.
       Pol Col Thawee said the prolonged pollution problems at the Map Ta Phut industrial estate in Rayong might stem from a lack of enforcement of regulations.
       The industrial area had been allowed to expand to such an extent that it had caused problems for Rayong's city plan,he said. The DSI also found the environmental problems at Map Ta Phut remained very serious, Pol Col Thawee said.
       The DSI started looking into Map Ta Phut's environmental problems following complaints from local residents. A group of residents also petitioned Prime Minister Abhisit Vejjajiva about their ordeal.
       Pol Col Thawee yesterday invited representatives of relevant agencies and local residents to a meeting to discuss ways to solve Map Ta Phut's environmental problems.
       Noi Jaitang, a residents' representative,said the expansion of industrial factories at Map Ta Phut had affected local people's health and opportunities to earn a living.
       Mr Noi said toxic contaminants in the water and soil had caused members of his family to develop cancer. His mother, his mother-in-law and his wife had died of lung cancer and eye cancer while he was suffering from respiratory disease.
       Fish farm production in his neighbourhood had also suffered a decline,Mr Noi said.
       Renu Wechratpimol, a biology lecturer at Silpakorn University, quoting the findings from a research study on genetic changes among the people and animals at Map Ta Phut, said high levels of abnormal genetic changes and toxic contamination had been found in samples of frogs, crabs, fish and clams collected from Map Ta Phut.
       The findings clearly show the pollution at Map Ta Phut and nearby areas had reached a dangerous level, she said.

World steel production rises

2009-09-23T23:48:00.000-07:00

       Global crude steel production rose to its highest level in almost a year in August, figures from the World Steel Association showed on Monday, as steel mills restarted idled capacity due to increased orders.
       The $500 billion industry is slowly recovering from one of the worst downturns ever and analysts expect output to rise further in the coming months, although the market is divided over whether the capacity start up is too rapid.
       Crude steel production was 106.5 million tonnes in August, after rising steadily since April and up from 103.9 million tonnes in July, despite a 5.5% drop compared with August 2008.
       "History tells you that demand tends to pick up faster than supply into an upturn," said analyst Jim Lennon at Macquarie Bank, referring to the highest monthly output since September 2008,when production totalled 107.9 million tonnes.
       Output in China, the world's biggest producer and consumer of the metal,rose to 52.3 million tonnes in August,up 22% year-on-year and the highest ever monthly figure.
       "The concern in the steel industry is that there is still overcapacity in the system and therefore there is a potential to oversupply the market.... I don't think there's any evidence of the steel mills increasing supply too fast at the moment," Lennon said.
       But last week Mel Wilde, chairman of UK-based International Steel Trade Association (ISTA), said producers were "overfeeding the market" even though demand remained weak.
       ArcelorMittal, the world's top steelmaker, does not agree. Chairman and chief executive Lakshmi Mittal, said last week he did not believe capacity restarts were taking place too soon.
       In August, almost all the major steelproducing countries, including China,Japan, Germany, the US, Brazil and Russia reached their highest monthly output this year.
       But for the first eight months of the year output remained 18.1% lower at 759.5 million tonnes compared with the same period last year.
       Output in Europe and North America dropped by 32.1 and 38.7% year-onyear respectively in August. In the European Union output dropped compared with July, as Italy's production almost halved.
       Production in the Middle East, where demand was buoyant last year due to booming infrastructure spending, rose by 14.9% in August compared with same month last year.

CHANGES WILL DETER INVESTORS, JETRO WARNS

2009-09-23T23:47:00.001-07:00

       Japanese investors would shift their investment to other attractive countries if the Thai government amends the heavy industrial development plan, the head of the Japan External Trade Organisation (Jetro) in Bangkok, said.
       Jetro president Munenori Yamada said Japanese investors, particularly steelmakers, will consider other potential countries for their investment instead of Thailand.
       Last week, the government ordered the National Economic and Social and Development Board to revise the Kingdom's industrial development master plan, to clarify its long-term direction, concerning the Southern Seaboard.
       The possibility of revision has created doubts among foreign investors.
       Two giant steelmakers from Japan - Nippon Steel and JFE - have shown strong interest to invest in the Kingdom.
       Yamada suggested that under the revision plan, Thailand should shift its focus to value-added or knowledge-based development to compete with other countries, particularly those in the neighbourhood.
       The revised industrial development plan should be based on high technology sophisticated to serve as integrated industrial base for large companies, he added.
       Santi Vilassakdanont, chairman of the Federation of Thai Industries, said that investors have been worried about the unstable policies of the government. The government must have clear measures for promoting industrial development so that foreign investors can decide whether they would want to invest in the Kingdom.
       To ensure that the government's industrial development policy is not changed by each cabinet, the development plan should be approved by Parliament for long-term implementation, Santi said.
       In addition, he said the industrial development plans in many areas such as the Southern Seaboard, the Eastern Seaboard, and the Northeast are still needed for the long-term development. The industrial sector is one of the key sectors, employing a million workers in the country.

Permit approvals could face court test

2009-09-19T21:38:00.001-07:00

       The government is on a legal collision course with environmental and community activists who claim recent approvals of industrial projects broke the law.
       The possibility of a court challenge has left investors concerned about the future of several costly ventures that could be subject to stricter environmental and health impact assessments.
       Protesters rallied in Rayong last week after the Industrial Estate Authority of Thailand (IEAT) and the Industrial Works Department approved operating permits for projects that had already completed environmental impact assessments (EIA).
       The protesters say the permits should be cancelled as they violate Section 67 of the 2007 Constitution, which governs industries deemed harmful to the environment and public health.
       Prime Minister Abhisit Vejjajiva yesterday chaired a meeting with the protesters to seek a solution to the impasse.
       Sorayud Petchtrakul, an adviser to the Industry Minister, said the permit approvals were made in line with a legal opinion of the Council of State. The government's legal adviser said that since guidelines to accommodate Section 67 were still not in place, officials were unable to revoke the permits.
       "For the approved permits, the PM said the public has the right to seek judicial support if they disagree with the officials," said Mr Sorayud, who attended the meeting.
       "We do not have the authority to revoke permits because investors had done everything in accordance with existing laws. If we revoke the permits, the investors will sue us."
       Suthi Atchasai, a leader of the People's Eastern Network, said the group had filed a case with the Administrative Court against the officials responsible for permit approvals, saying the permits should be rescinded and no new ones issued.
       "We believe the approvals were against the law and need to be annulled," he said."As well, new permits need to wait for Section 67 guidelines to ensure maximum rights of villagers are guaranteed."
       Until the guidelines are released and an independent body is formed to enforce them, investors must wait, or protesters would do everything possible to disrupt operations, said Mr Suthi.
       But Mr Sorayud insists that the remaining projects seeking permits would continue to be processed as normal.
       "The PM does not want to see a halt in investment, so we're going ahead with the permits. However, public opinion is welcome in the permit consideration process if people see any projects about which we need to be careful," he said.
       The dispute is worrisome for investors,said Chainoi Puankosoom, chief executive of PTT Aromatics and Refining (PTTAR). Problems have arisen, he said,because of unclear mechanisms for dealing with environmental protection.
       "We are doing everything according to existing law so we should obtain the permits," he said."If there is anything we should do more to live in harmony with communities, we are willing to do it. The government should also accelerate clear guidelines to improve confidence in new investment."
       PTTAR is awaiting a permit for its US$180-million condensate residue upgrade in Map Ta Phut. Construction was completed in March. It says it faces an opportunity loss of $130,000 per day.
       A total of 55 investment projects worth 200 billion baht are awaiting permit approvals. A PTT gas-separation plant is at the top of the list, along with investments by Thai Asahi and Aditya Birla.
       New projects that have yet to obtain EIA approval and fall under the harmful list would have to wait for Section 67 guidelines before seeking permits.
       The Industry Ministry put eight industries on the harmful list in a ministerial announcement released last Monday.They will need EIAs, health impact assessment (HIA) approval and public hearings, to be overseen by a yet-to-be formed independent organisation.
       Mr Sorayud could not give a timeframe for the formation of the new body but said that in any case, any industries creating high emissions would need extra scrutiny in order to control pollution.

PM pays heed to industrial impact fears

2009-09-19T21:37:00.000-07:00

       Prime Minister Abhisit Vejjajiva has vowed to look into the environmental impact of industrial projects in Rayong's Map Ta Phut area after getting firsthand information from locals.
       Villagers from the area who have been affected by industrial pollution finally got to meet the premier at Government House yesterday, after organising a series of protests and dozens of petitions on the matter over the past year.
       Mr Abhisit reaffirmed the locals' right to monitor the environmental and health impacts of industrial investment in Map Ta Phut.
       The villagers were particularly concerned about 55 industrial projects whose environmental impact assessments have been endorsed and are waiting for construction and operating permits from relevant agencies.
       Mr Abhisit said he could not say whether or not all of the 55 projects should be put on hold as the developments should be considered on a caseby-case basis.
       He also said project developers are obliged by the law to follow Article 67 of the constitution which states that any investment projects that could cause environmental and health impacts must be put before a public hearing.
       The prime minister said he would take into consideration the villagers'proposal to designate Map Ta Phut as a special local administration area.Locals say the move would facilitate the local organisation's tackling of pollution problems.
       "There are so many agencies working on pollution problems in Map Ta Phut.Poor integration between these relevant agencies might have disrupted the effort to solve the pollution problem there,"he said.
       Mr Abhisit urged the villagers to switch from holding mass rallies about the problem to holding talks with relevant agencies where they could exchange information with officials.
       "Demonstrations lead to nothing.What we should do is discussing the matter on the table," he said.
       Sutthi Atchasai, a leader of the Eastern People's Network, said he was satisfied with the meeting's outcome as Mr Abhisit had showed sincerity in wanting to solve the long-lasting problem.
       The Industry Ministry's representative, meanwhile, said authorities would go ahead with issuing permits for projects that have already passed environmental impact assessments.
       The approval of permits was legal according to the Council of State's decision as guidelines to accommodate Article 67 of the constitution have yet to be drawn up, said Sorayud Petchtrakul, an adviser to the industry minister,who was at the meeting.
       "For the approved permits, the prime minister said the public has the right to seek judicial support if they disagree with the government bodies' operations.We do not have the authority to revoke permits because investors were doing everything in accordance with existing laws. If we revoke, investors will sue us," Mr Sorayud said.
       The Industrial Estate Authority of Thailand and the Industrial Works Department are responsible for approving operating permits for factories.
       "The prime minister does not want to see a halt in investment, so we are going ahead with the permits.
       "However, public opinion on the granting of permits is welcome," he said.

GREEN HURDLES LOOM FOR EIGHT PROJECTS

2009-09-19T21:36:00.001-07:00

       Upstream and downstream petrochemical plants as well as nuclear power plants are on the list of eight industrial projects with a "serious impact" on local communities that was recently issued by the Industry Ministry.
       Appearing on the list means these projects must pass health-impact assessments, receive local communities' endorsement in a hearing and win approval from an independent environmental body to be set up by the Natural Resource and Environment Ministry under the auspices of Article 67 of the Constitution.
       The other six project activities covered by the list are underground mining; lead and zinc mines; chemical-based mineral dissolving and upstream steel production with daily minimum capacity of 20,000 tonnes; industrial estates for upstream steel production or upstream to midstream petrochemical plants; dumping sites and kilns for hazardous wastes; and fossil-fuel power plants (except gas-fired plants) with minimum capacity of 100 megawatts.
       Vice Industry Minister Sorayud Petchtrakul yesterday said Minister Charnchai Chairungrueng had endorsed the list this past Monday.
       "We have no choice but to issue the list, in order to comply with the law," he said.
       Department director-general Witoon Simachokedee said his agency had already approved operating licences for 12 projects with a combined value of Bt59 billion.
       So far, only PTT's gas-separation plant, which is not on the list of serious-impact activities, is awaiting department approval.
       LAWSUIT
       Nevertheless, even though the list has been declared, in accordance with the government's resolution, the projects can proceed in the absence of the independent environment body.
       Suthi Atchasai, coordinator of a citizens' network on the Eastern Seaboard, yesterday said the network would soon file suit against the National Environmental Board for approving the environmental impact assessment for 55 projects slated for the industrialised zone in Rayong's Map Ta Phut.
       Most of those projects are petrochemical projects of PTT, the Siam Cement Group and Dow Chemical.
       Prime Minister Abhisit Vejjajiva yesterday told villagers from Map Ta Phut that not all of the 55 projects in the area were causing environmental problems. Villagers should consider each on a case-by-case basis.
       He insisted there should not be a consensus that investment in Map Ta Phut must be frozen.
       "Personally, some of them can proceed," he said.
       He also mentioned the possibility of declaring Map Ta Phut a special administrative zone. With its own autonomy, the zone would demonstrate unity and "speedy and united" decisions, Abhisit said.
       He also believes public access to the zone will be granted. However, a law must be enforced to push through the idea.
       Abhisit said he was pushing for a conclusion to determine if Map Ta Phut should become a special administrative zone.
       He said government measures to contain the environmental impact in Map Ta Phut would be designed in a framework that could be enforced in other areas.

NEW DATA SHOW RECOVERY CONTINUING

2009-09-19T21:35:00.000-07:00

       Signalling that manufacturers are leading the economy into a recovery, output from the nation's factories, mines and utilities posted widespread gains in August.
       In a further dose of good news,inflation remained essentially nonexistent as prices scarcely rose last month.
       The August gains in industrial production marked the second straight increase after the global recession dried up the appetites of customers worldwide. Output rose o.8 per cent, the Federa Reserve said on Wednesday,beating analysts' estimates.
       In part, the improvement reflected auto sales that were boosted by the government's now-ended "Cash for Clunders" programme. But analysts were impressed that output rose broadly across industries.
       "Vehicles are not the whole story,"Nigel Gault, chief US economist at IHS Global Insight, said in a note to clients. Gault noted that production rose in five out of 10 categories of durable goods, including machinery and electrical equipment.
       The pace of growth is expected to slow later this year. That's partly because the stimulative effect of the clunkers programme, which issued rebates for people who traded in older gas-guzzlers for new,fuel-efficient models, will fade.
       But industrial stockpiles are so low that production should keep rising even as consumer spending remains weak, economists said. companies had cut their stockpiles by a record $159.2 billion (Bt5.4 trillion) in the second quarter. Low inventories tend to signal higher out put ahead, because companies even tually must produce more to refill their depleted stockpiles.
       "Manufacturers are in a catch-up mode right now," Gault said. "They're adjusting for the fact that the level of demand didn't meet their worst fears."
       Factory output, the single-biggest slice of overall industrial activity, also rose for the second straight month.
       Auto production led the way, rising 5.5 per cent in August. That followed a whopping 20.1 per cent gain in July, when General Motors and Chrysler reopened many plants that had been closed as the companies restructured and emerged from bankruptcy.
       Yet even with autos and parts stripped out, manufacturing activity gained 0.4 per cent last month.
       Production of steel, aluminium and other metals rose 0.9 per cent, while electrical equipment and appliances output also increased.
       Despite the recent gains, industrial companies are still operating well below capacity. The production rate in August was 69.96 per cent, under the 80 per cent consistent with a helthy econlmy.
       Manufacturing output will likely grow more slowly later this year as the clunkers' impact wears off said Daniel Meckstroth, chief economist for the Manufactureers Alliance/MAPI, a business research group.
       "We only expect a modest pace of recovery because of the headwinds that debt-laden consumers face," he said, meaning sluggish spending is likely for months.
       Consumer spending, which accounts for about 70 per cent of the economy, is forecast by many economists to show weak growth next year. Shoppers are holding back in the face of job losses, stagnant incomes and tight credit. That contrasts with the early stages of othe r recent recoveries.
       Inflation, meanwhile, remains nowhere in sight. The Consumer Price Index rose just 0.4 per cent in August, after a flat reading in July, the government said
       Prices fell 1.5 per cent in the past year,as petrol prices dropped sharply from record levels last summer.
       The "core" CPI, which excludes volatile food and energy prices, ticked up a scant 0.1 per cent, mathing expectations. Over the 12 months ending in August, the core rate rose 1.4 per cent, the smallest such increase in more than five years.
       That means the fed faces no pressure to raise its benchmark interest rate, a step it would take to ward off high inflation. The Fed has reduced the rate it charges banks for overnight loans to a record low of nearly zero to try to revive the economy.
       AT A GLANCE
       The August gains in industrial production marked the second straight increase after the global recession dried up the appetites of customers worldwide. Output rose 0.8 per cent, the Federal Reserve said on Wednesday, beating analysts' estimates.
       "Manufacturers are in a catch-up mode right now," Gault said. "They're adjusting for the fact that the level of demand didn't meet their worst fears."
       Auto production led the way, rising 5.5 per cent in August. That followed a whopping 20.1 per cent gain in July, when General Motors and Chrysler reopened many plants that had been closed as the companies restructured and emerged from bankruptcy.

       A CONTAINER SHIP loads up at the Port of Long Beach, California. US industrial production rose for the second straight month in August, with output beating analysts' forecasts.

NESDB TO REVAMP MASTER PLAN

2009-09-19T21:34:00.000-07:00

       The National Economic and Social Development Board has been tasked with revising the Kingdom's industrial-development master plan, to clarify the long-term direction in this regard, Deputy Prime Minister Korbsak Sabhavasu said yesterday.
       Speaking at a seminar entitled "Direction for Industrial Development under HIA Criteria" hosted by the Economic Reporters Association, Korbsak said it was difficult for industries and local communities to grow together.
       "We gave support to the industrial sector for decades by focusing on economic growth but were rarely concerned about the impact on other areas. However, Map Ta Phut is a good case study for making us consider whether we've gone in the right direction for developing our industries," he told the audience, which consisted mostly of economic reporters but included some environmentalists.
       Growing environmental concerns have resulted in delays in implementing some industrial projects. There have been protests by local communities, and they have had to comply with the environmental rules under Article 67 of the Constitution, but the authorities have yet to iron out guideline inconsistencies.
       Revision of the master plan will be completed this year. The new version will classify the effects of each industry and indicate possible locations for accommodating industries with high environmental impact.
       Korbsak said despite the government's strong determination to steer the economy without harming people's health or the environment, it would not change the overall economic structure by halting promotion of export-oriented industries, which account for 60-70 per cent of gross domestic product.
       "We would do better to develop those areas we are good at, such as agriculture. If possible, should we encourage heavy industries that affect our people and the environment to operate outside the country, like developed countries do?" he said.
       He said new projects planned for the Map Ta Phut Industrial Estate would find it difficult to pass an environmental-impact assessment (EIA), because of the density of plants in the area. Some 50 projects worth a combined Bt280 billion will be the last group to receive EIAs.
       After the seminar, he said he personally objected to allowing steel smelters in the South, which should be kept pristine for tourism rather than used for manufacturing.
       Sonthi Kochawat, director of the Office of Natural Resources and Environmental Policy and Planning's EIA Monitoring and Development Centre, said his agency would adopt strategic environmental assessments in evaluating the impact of industrial sites before approving an EIA for a project.
       "We'll place greater importance on assessing the appropriateness between an industrial project and its location, in order to squash conflicts between manufacturers and local communities at the start," he said.
       He said the new guidelines for approving EIAs would take effect on December 30. They will feature evaluations of public-health impacts and allow greater public participation.
       Meanwhile, Supoj Songsiang, a member of the Bang Saphan Preservation Network, said it would be difficult to persuade locals to agree to having factories built in their backyard no matter how strict the laws and regulations.
       "Even though the new regulations will increase participation by local communities, in fact we'll still be treated with double standards," he said.
       Panrat Phechpakdee, director of the Federation of Thai Industries' Industrial Environment Institute, said the private sector was not worried about the changes to the laws and regulations, but they did want the relevant agencies to announce them as soon as possible.

THIRD MAN ENTERS RACE FTI CHAIR

2009-09-16T19:08:00.000-07:00

       The Federation of Thai Industries' Electrical, Electronics and Allied Industry Club yesterday nominated one more candidate in the race to become the next FTI chairman.
       Suraporn Simakulthorn, the new candidate, said: "If I win, I would prefer a single term [two years], because I only want to reorganise the FTI and create harmony among the members. Even though regulations allow for two consecutive terms as chairman, I don't think I'd do that."
       He said his two main objectives for running were to reorganise the FTI and enhance the industrial sector's competitiveness, in order to be a leader within Asean.
       Suraporn is president of Kulthorn Kirby, a manufacturer of hermetic compressors for refrigeration and air-conditioning systems.
       Two others earlier announced their candidacy for the election, which will be held next March.
       One is vice chairman Payungsak Chartsutipol, who has the backing of leading firms like the Siam Cement Group, PTT and the Saha Group.
       Asian Honda Motor senior vice president Adisak Rohitasune is the other candidate. He was proposed by Saha Farms Group president and CEO Manoonsri chotitawan and is supported by automotive companies and auto-parts manufacturers.

NO NEW FACTORIES WITHOUT ASSURANCES

2009-09-16T19:07:00.000-07:00

       Expansion plan for industrial plants at Map Ta Phut should be debated at public hearings before approval is given
       The government must carefully consider its policy at the Map Ta Phut industrial estate in Rayong after the National Human Rights Commission (NHRC) recently pointed out that approving more factories at this site - now a pollution-control zone - could violate the constitution.
       The NHRC says that if the government allows more factories to be located at Map Ta Phut, it could be interpreted as a violation of Article 67 of the Charter.
       The plan for more factories has faced opposition and protests from local people who fear the environmental impact of further development and the pollution it will cause, will have negative consequences on their way of life.
       The big question for the government is how to balance industrial development and the interests of residents who live in the area.
       Chairman of the NHRC's Committee for Civil Rights, Niran Pitakwatchara, said his panel would send a letter to Prime Minister Abhisit Vejjajiva, who chairs a joint public- and private-sector panel that is looking at licences for Map Ta Phut.
       Industries meanwhile argue that factories will not pollute the environment.
       Sounds familiar, doesn't it?
       The local residents are not convinced by this argument because an independent organisation - made up of representatives of environmental and health groups - to investigate the possible environmental impact has yet to come into being. A bill to set up such an organisation has not materialised so far.
       The problem lies in a lack of trust between people in the area and the industries, as well as the government agencies who oversee environmental standards. This deep-seated mistrust is nothing new, however. Unfortunately, no administration has ever taken this matter seriously, or has had the political will to do something about it. And so there has been incident after incident and protest after protest; deals are made and life goes on. But the mistrust persists.
       At this particular juncture, with the debate over Map Tha Phut ongoing, it would be unwise for the government to proceed with the investment expansion plan without the consent of the locals. In the past, public hearings on proposed projects - such as the Bo Nok Hin Krut power plant in Prachuap Khiri Khan province - created huge conflict in local communities.
       Certainly, Rayong residents are entitled to vent their disapproval of the plan for new factories. After all, they are the victims of the unrestrained industrial development that has gone on for years, and the potential victims of any further uncontrolled expansion.
       Thailand has transformed its economy from being agriculture-based to manufacturing-based, partly at the expense of the well-being of local residents. The agencies involved might have been excited about the foreign exchange that these factories brought into the country at first. But the pollution they caused later raised the question of whether it's worthwhile to keep expanding the industrial base at the expense of people's health.
       A number of irresponsible factories discharge waste, causing severe health problems for nearby residents. Although the authorities may argue that the factories have to pass an environmental standard, such are apparently not sufficient to assure people they will not have to suffer from the effects of pollution. Last week, villagers rallied again outside the Map Ta Phut estate office to protest against the plan to extend more licences for new factories.
       It would not be a shrewd move for the authorities and industries to proceed with the expansion without listening to the residents' voices. They should first try to create understanding among the people that their plants will not harm the environment. If the people don't buy in to their claims, the conflict between industries and residents will erupt again.
       The government meanwhile must work out how to assure residents that the environmental standards will be respected. This can be done through the setting up of a neutral body.
       If this is not done, no one will be convinced that new factories conform to the environmental regulations, and peaceful coexistence between local residents and the industries will not be possible.
       Thais may soon have to question whether this path of industrial development will lead to a desirable future.

NGOs push harder for independent environmental body

2009-09-15T00:35:00.000-07:00

       Activists are hoping to collect enough signatures this month to push for an independent environmental agency to monitor the impact of heavy industry on local communities.
       Non-governmental organisations have gathered half of the 100,000 signatures needed by the constitution to forward a draft organic law to parliament in relation to the constitution's Article 67.
       "We could not wait for the government to launch the organic law to set up an independent committee to decide on the serious issues which affect the lives and deaths of communities," Phairoj Pholphet, chairman of the NGO Coordinating Committee, told a recent seminar attended by community leaders affected by heavy industry such as steel production, power plants and gold mining.
       Mr Phairoj said another 50,000 names would be added to the petition by the end of the month.
       The Natural Resources and Environment Ministry is drafting an organic law on an independent organisation to screen heavy impact industries. But pressure from industry and political turbulence have stalled the process, the seminar was told.
       Article 67 stipulates that all factories with the potential to have a serious environmental impact on communities must be approved by an independent organisation made up of representatives of environmental and health groups,with health and environmental studies undertaken by tertiary institutes.
       But the Council of State ruled that authorities could process project appli-cations during the absence of the organic law to set up the body.
       The ruling has led to confrontations between villagers and project operators and local administrative organisations in several places including Map Ta Phut in Rayong's Muang district.
       Banjerd Singkaneti, a Thammasat University professor in law, said the Council of State could not interpret the constitution in a way that defied or undermined people's rights.
       The article must be strictly implemented.
       Heavy industries thought to be dangerous to communities should not be pushed through without public hearings and independent environmental and health impact assessments, he said.
       The National Human Rights Commission also warned the government against approving more factories in the Map Ta Phut industrial area after it was declared a pollution-control zone, as this could be taken as a violation of the constitution.
       Sanchai Sutiphanviharn, of Mahidol University's environmental and resources faculty, said the independent environmental agency would be duty-bound to consider the environment, health,archeological and tourist value of the affected areas.
       Detcharat Sukgamnerd, a researcher with the Foundation of Health, said during the absence of an organic law to enforce Article 67, communities could resort to the National Health Act which allowed a review of the health impact assessment of industries without having to wait for the environmental impact assessment.

Factories urged to adopt CSR in communities

2009-09-13T20:22:00.000-07:00

       The Department of Industrial Works has urged industrial factories in its umbrella to adopt its standard of the Corporate Social Responsibility, Department of Industrial Works (CSR-DIW) to enable them to live in harmony with the surrounding communities.
       "We want to see a greater number of factories adopting the standard and we'll send our experts to give them advice on how to adopt it," he added. CSR-DIW focuses on many areas of social responsibility, including law compliance, international standard compliance, promoting participation of stakeholders, accountability, transparency, sustainable development, ethical practice, human-rights protection, and observing diversity.
       The Thai Namthip bottling plant at Rangsit is one of the factories in the process of promoting CSR-DIW.
       Veera Akaraputhiporn, vice president for corporate affairs of Thai Namthip, said the company's plant in Pathum Thani has already complied with the CSR-DIW.
       It is proceeding to have the other plants, including that in Rangsit, to comply with the standard, to be followed by each of those in Khon Kaen, Nakhon Ratchasima, and Hua Mark in Bangkok.

ANY NEW FACTORIES WOULD BE ILLEGAL

2009-09-11T06:33:00.000-07:00

       The National Human Rights Commission (NHRC) warned the government yesterday that approving more factories at Map Ta Phut industrial area - now a pollutioncontrol zone - could violate the constitution.
       Chairman of the NHRC's Committee for Civil Rights, Niran Pitakwatchara, said his panel would send a letter to Prime Minister Abhisit Vejjajiva, who chairs a joint public and private sector panel, which is looking at licences for Map Ta Phut, to warn that allowing more factories would violate Article 67 of the charter.
       He said Article 67 stipulatฌed that projects likely to have severe impacts on communities must be approved by an independent organisation made up of representatives of environmental and health groups, with health and environmental studies undertaken by institutes of higher education.
       However, while a bill to set up such an organisation had been drawn up, it had not materialised, for unknown reasons, he said.
       Although the government insisted on a Council of State recommendation to use the National Environment Act 1992 while such a body was yet to be established, in reality, use of Environmental Impact Assessment (EIA) reports under this law was not up to standard, he said.
       In the past, public hearings for projects such as the Bo NokHin Krut power plant proposed in Prachuap Khiri Khan created huge conflicts in local communities, he said.
       Thus the government could not issue factory licences until an independent body granted permission first or it would be a violation of the 2007 constitution, he said.
       In Rayong's Muang district, Suthi Atchasai, coordinator of a public network on the eastern seaboard led 200 villagers to rally yesterday outside the Map Ta Phut estate office, while police guarded the entrance.
       Carrying a coffin and wreaths to burn as part of the protest, they called for estate director Peerawat Rungreungsri to receive their formal request to stop extending factories until the provincial plan to prevent pollution was finished.
       They also called for an inquiry to find out who was paying matermind the attempt to stop.
       Suthi also said that he was asking Democrat Party's Rayong MP Sathit Pitudecha to arrange the group's meeting with Abhisit about this matter.
       If this didn't happen soon, the group would file a police complaint against the Premier, Industry Minister, as well as other related Cabinet members.
       The group would also filed a lawsuit to the Rayong Administrative Court for an injunction. The protesters then moved to place a coffin and wreaths in front of the nearby SCG, Thai Cement and PTT gas separation plants, which were reportedly applying for permission to more factory establishment.
       The protesters gave speeches and moved to Noen Samlee Intersection before dissolving.

Protest seeks permits freeze

2009-09-10T00:50:00.001-07:00

       More than 2,000 protesters rallied in Rayong yesterday demanding the Industry Ministry put on hold permits for investment projects which have passed the environmental impact assessment (EIA) stage.
       The request was lodged with a Rayong deputy governor, and the protesters want a response by today.
       "If the provincial administrative authority refuses to do as we ask, we will mount a more hostile movement because we believe the government is violating the constitution," said protest leader Suthi Atchasai.
       Industry Minister Chanchai Chairungrueng recently let ministry officials issue permits for projects which had passed the EIA stage of planning.
       The minister was acting on advice from the Council of State that approval could be given in such cases.
       However, the activists argued that the Council of State was unaccountable to people, and projects potentially damaging to residents' health must also pass a health impact assessment and a public hearing.
       Chairman of the Federation of Thai Industries Santi Vilassakdanont said the protesters should respect the Council of State's decision.

CABINET NOD FOR LOANS FROM WB, ADB

2009-09-08T20:48:00.001-07:00

       The Cabinet yesterday approved borrowing a total of US$170.30 million (Bt5.62 billion) from the World Bank and the Asian Development Bank to finance the construction of four expressways.
       Deputy government spokesman Phumin Leetheerapra said the $79.30-million loan from the World Bank would be for 15 years, including a five-year grace period, with an average interest rate of 0.91 per cent per annum. The $77.10-million loan from the ADB is for the same duration and the interest rate would be in line with the US floating rate.
       Last week, the Cabinet had cancelled the loan. However, the finance minister insisted that loans from the two banks, for the construction of expressways, is the most appropriate means of financing the projects.
       Parliamentary approval is necessary for the two loan deals, he said.
       The Cabinet also approved some programmes to ease pollution in Map Ta Phut and Rayong. The Education Ministry is to consider the consolidation of universities in the province to provide occupational health, environment and other studies.
       The ministries of public health and natural resources and environment are to present concrete measures to ease health problems, probably through a special medical unit. The Interior Ministry was also instructed to find ways to establish a special regulatory unit to improve the province's administration.
       The Cabinet also approved a budget of Bt90 million for the Science Ministry's recycling project to turn dried longans in the government's stock to biomass energy.

MDX projects flat 2009 revenue

2009-09-03T20:39:00.000-07:00

       The SET-listed industrial land and power plant developer MDX Plc expects its revenue to stay on par with last year on hopes of an improved industrial sector in the second half.
       The company can equal the 650 million baht revenue it recorded last year,but maintaining profit at 125 million baht would be difficult, said chairman Pracha Hetrakun.
       MDX recorded a first-half net loss of 47 million baht due mainly to the decline in industrial estate demand.
       "Another main reason [for losses] is the delay in our negotiations to sell power from the Nam Ngum 3 power plant to the Electricity Generating Authority of Thailand (Egat)," he said.
       "Demand for power has decreased in line with the economic slowdown and this caused the delay of the deal, we have no idea when [the deal] will reach an agreement. This delay has an impact on our expected income."
       Land sales at its Gateway City Industrial estate have fallen in the global slump.
       Gateway City may only sell 20 rai of industrial land in Chachoengsao this year. It currently has 1,000 rai of undeveloped land and about 500 to 600 rai of developed land at the project.
       However, it expects utilities income to increase in the second half as existing factories are expected to increase their capacity as global demand improves.
       MDX also hopes to earn income from its 350-megawatt power plant in Samut Prakan's Bang Bo district.
       The company is now expanding capacity at the Nam Theun-Hinboun hydro-power plant in Laos to 500 MW from 210 MW. The $500 million investment project is expected to completed in 2012.
       Mr Pracha said no new investment was planned because of the downturn.
       With new investment expected to remain low, affecting future earnings from its industrial estate business, MDX is considering a heavier focus on energy,which has bigger margins.
       Shares of MDX closed yesterday on the SET at 1.28 baht, down four satang,in trade worth 7.26 million baht.

Recovery in China gains momentum

2009-09-01T23:55:00.000-07:00

       China's manufacturing activity expanded in August at its fastest pace in 16 months, two surveys released yesterday showed, signalling the world's third-largest economy is stabilising.
       The Purchasing Managers Index, or PMI, published by the China Federation of Logistics and Purchasing rose for a sixth consecutive month in August to 54.0, up from 53.3 in July.
       The HSBC China Manufacturing PMI, an independent reading compiled by British research firm Markit Group Ltd rose to 55.1 in August from 52.8 in July.
       A reading above 50 means the sector is expanding, while a reading below 50 indicates an overall decline.
       "August PMI's continued to increase slightly, indicating China's economy will maintain the upward momentum,"Zhang Liqun, an economist at the State Council's Development Research Centre, said in a statement.
       Of 20 industries surveyed, only the textile and pharmaceutical industries contracted last month, the federation said.
       More than a fifth of managers at 727 businesses interviewed reported a rise in imports, including raw materials,after five consecutive months of decline,it added.
       "The domestic demand driving China's economic recovery is further strengthening," the federation said.
       "Exports are recovering but still face uncertainty," it said. The August new export order index was 52.1, flat from the previous month. Although the index has been above 50 for four months,growth has been weakening.
       "The forward-looking components of PMI indicate continued expansion in both domestic and export demand,"Jing Ulrich, J.P. Morgan's managing director and chairman for China equities, said in a research note.
       China's economy expanded by 7.9%in the second quarter, up from 6.1% in the first quarter, mainly as a result of massive government spending amid the global downturn.
       Beijing announced a four-trillionyuan ($585-billion) stimulus package last year in a bid to prop up growth in the country by boosting investment in infrastructure and other governmentbacked projects.
       "Beijing will continue to withdraw some of the stimulus that has done its job - lending and infrastructure spending - and is no longer needed. We will not see any measures designed to slow economic growth," Andy Rothman, a Shanghai-based economist at the CLSA brokerage, said in a note.
       "In other words, no 'tightening'."The PMI sank to a record low of 38.8 in November as the global financial crisis took hold, but improved continuously in the following months, moving above 50 in March.
       Manufacturing accounted for more than 40% of the economy last year in China, which has been hit hard by evaporating demand for its products in key export markets such as the United States and Europe.
       The PMI data had little effect on the market as investors had expected an improvement, traders said.
       The Shanghai Composite Index,which covers A and B shares, rose 15.98 points to 2,683.72 on turnover of 101.7 billion yuan ($14.9 billion). The key index plunged 6.74% on Monday.

SUPPLY SLUMP SWEETENS POTENTIAL FOR THAI EXPORTS

2009-08-31T20:07:00.000-07:00

       The price of sugar has risen to its highest level in 28 years due mainly to severe drought in many countries particularly India, which has resulted in shortage of supply in the global market.
       Thai Sugar Millers Corporation (TSMC) said yesterday that the primary price of sugar cane for the new crop will hit Bt1,150 per tonne, which is the highest since 1982.
       Prakit Pradipasen, chairman of TSMC, said the price will remain at these levels with increasing demand in the world market.
       He added that sugar price in the world market had increased by 20 cent per pound due to decline in sugar production in many countries following drought.
       "Sugar-price trading in the futures market has skyrocketed 24.78 per cent per pound in March 2010. If the price keeps rising, the final price of sugar cane should be higher than the estimated primary price of sugar cane of Bt950 per tonne for the harvesting season 2009/10," said Prasert Tapaneeyangkul, secretary-general of the Office of Cane and Sugarcane Board (OCSB).
       If the final price of sugar cane is higher than the primary price, sugar manufacturers will need to pay the additional amount to sugar-cane growers for that season.
       The primary price of sugar cane in 2008/09 was Bt830 per tonne, while the final price was forecast to be around Bt860 per tonne, he said.
       He is confident the price of sugar cane in 2009/10 will be higher than last season, which should be higher than Bt980 per tonne.
       The main factor pushing up the global sugar price was India, which has shifted from being a sugar exporter to importer because of the drought situation, he said.
       "India's sugar stocks have been decreasing, from 9.3 million tonnes last year to 7.5 million tonnes this year. It will further drop to 5 million tonnes in 2010," he said.
       The Indian Sugar Mills Association has estimated that sugar output in India would reach 19 million tonnes next year from 14.7 million tonnes this year.
       However, it is believed that sugar production would be only 16 million tonnes next year because of poor sugar cane species and the impact of climate change.
       India currently consumes around 22 million tonnes of sugar each year, which has tended to increase following the economic recovery and its huge population.
       Vibul Panitvong, executive chairman of Thai Sugar Millers Corporation, said the price of sugar cane could rise to Bt1,100 per tonne in the year 2009/2010 due to the skyrocketing price of sugar.
       "The higher sugar price will hike the total value of Thailand's sugar exports from US$1.5 billion (Bt51 billion) this year to $2.5 billion in the coming year," he said.
       Besides India, he said the world's largest sugar exporter, Brazil, would also not be able to make up the shortage in supply despite boosting its sugar-cane output.
       "The higher output will go towards serving 30 new ethanol plants in Brazil. Presently, 57 per cent of total sugar cane output in Brazil is used to produce ethanol, and the rest 43 per cent is used to produce sugar," he said.
       Brazil is expected to increase its sugar exports from 31 million tonnes this year to 33 million tonnes next year.
       Due to lower sugar export from India and other countries, it will be a good opportunity for Thailand to boost its exports and for local sugar-cane growers who will be able to sell the sugar cane at a better price.
       The output of sugar cane in 2009/10 is expected to be around 71.6 million tonnes, up from 66.46 million tonnes in 2008/09 as a result of high rainfall. Consequently, sugar production will increase from 7.19 million tonnes to 7.64 million tonnes. However, Thailand's main obstacle is to improve sugar-cane yield and the structure of benefit sharing.
       Vibul said Thai sugar manufacturers have expanded their business to neighbouring countries such as Laos and Cambodia because of limited agricultural areas in Thailand and tariff incentives to export to European Union countries.
       He said Thailand's subsidy system has created price distortions and reduced the overall industry competitiveness.
       In 2007, the Cabinet put the development of the sugar-cane industry on the national agenda, to be completed in three years.
       "It's shameful that though we proposed an annual budget of Bt1.1 billion for three consecutive years, the government has not approved it at all. Therefore, it is difficult for us to move forward with the projects in the national agenda," Prasert said.
       There are five development plans in the national agenda: research and development of cane species, value-added creation of by-products from sugar cane, productivity improvement, alternative energy, and corporate social responsibility.

East Water bullish on revenue as demand surges

2009-08-28T21:16:00.000-07:00

       Eastern Water Resources Development and Management Plc (EASTW) expects better performance this half from demand increases as production capacity show signs of improvement.
       "Revenue improved 12% in the first half from higher water prices but this half could see even more improvement as raw water demand has jumped, especially in Rayong, our largest selling area," said chief executive Praphant Asava-aree.
       East Water derives 63% of its revenue from raw water, 22% from tap water and the rest from services and drinking water.
       It forecasts a yearly 8% drop in untreated water consumption this year from shrinking industrial production but the price increase helped offset and improve its yearly revenue by 12-15%.
       Raw water demand is expected to drop 4% this year to 215 million cubic metres, while a 10% increase is expected next year to 233 million cubic metres as domestic consumption increases and petrochemical projects expand.
       Net profit should also grow more than 15% from higher prices and lower cost.
       Average water prices climbed 15% from last year to 9.10 baht per cubic metre. This average should remain stable until next year, according to a study to be issued early next year.
       In the second quarter, East Water earned a net profit of 222 million baht, up 21% year-on-year and 4% from 214 million in the first quarter, as revenue rose 10% year-on-year to 729 million.
       First-half net profit was 436 million baht (0.26 baht a share), up 15.61% from 377 million (0.23 baht a share) from a year earlier. The yearly dividend will be more than the 20 satang forecast earlier.
       "We decided on 10 satang per share in the first half to be conservative, but since the economic situation seems to have improved, we should increase our return to shareholders too," he said.
       Further cost cutting such as renting out building space is planned, while a five-year investment of 3.6 billion baht should improve its capacity to accommodate demand in the next 10 years.
       For its raw water business, East Water is in the process of extending pipelines in Nong Plalai, Map Ta Phut and two other areas, while building its own reservoirs is being studied.
       It also plans to extend coverage in areas of existing contracts and is studying the waste water management business.
       The company also plans to install a mini-hydro turbine generator at its Prasae reservoir to generate extra revenue.
       "We also hope to win a water-loss reduction project in Bangalore, India, and bidding results should be known by October. In addition, we should receive 900 million baht from the Irrigation Department for a pipeline between the Prasae and Khlong Yai reservoirs that we took charge of on behalf of the government. A disbursement this year would support our cashflow," he said.
       Shares of EASTW closed yesterday at 3.82 baht, down four satang, in trade worth 4.59 million baht.

Court to look into details of 76 industrial developments

2009-08-27T20:05:00.000-07:00

       The Central Administrative Court has ordered eight agencies to provide it with details of 76 industrial projects planned for development in Rayong's Map Ta Phut area.
       The Stop Global Warming Association and 42pollution-affected villagers sought a court injunction to suspend the projects and their approved environmental impact assessment (EIA) studies.
       The plaintiffs accused the National Environment Board and seven other agencies of not following the constitution's Article 67, which states a project seen as harmful to the environment and people's health must undergo public hearings before it could be endorsed.
       The court refused to issue an injunction or conduct an emergency hearing of the case, but ordered the plaintiffs and the eight defendants to submit details of the 76 projects within 15 days.
       Stop Global Warming Association president Srisuwan Janya said the court required the plaintiffs to show how the 76 industrial plants would harm local people's health and the environment.
       The court also told the defendants to report on the construction process and potential impact of the projects,Mr Srisuwan said.
       The Stop Global Warming Association and the villagers lodged a court complaint in June.
       The case is pending trial.On Tuesday, the cabinet agreed to a Joint State-Private Committee resolution to allow agencies to proceed with issuing permits for industrial projects after it engaged in close legal consultations with the Council of State.
       The cabinet resolution spurred the plaintiffs into seeking a court injunction to stop the issuing of permits,Mr Srisuwan said.
       Sutthi Atchasai, a leader of the Eastern People's Network, which spearheads local people's fight against pollution in Rayong, said the villagers would hold a mass gathering at Map Ta Phut industrial estate on Sept 9 to pressure the government to follow Article 67 of the constitution.
       The article requires the government to arrange for an independent environmental agency to give advice on implementation of projects that could be harmful to people's health and the environment.
       Activists also urged the government to draw up a list of activities that are considered dangerous to people's health and the environment.
       "It is going to be a very long protest which may have an impact on industrial activity if we don't get a clear answer from the government on how it translates Article 67 into action,"Mr Sutthi said.
       Meanwhile, Industry Minister Charnchai Chairungruang yesterday shrugged off the court order, saying the ministry had followed health and environmental protection regulations when dealing with industrial development.
       He said the ministry was working on a list of projects with a critical impact on health and the environment under Article 67.
       The list would be submitted for cabinet consideration.

INDUSTRIAL INDESXES SHOW IMPROVEMENT SINCE JANUARY

2009-08-27T20:04:00.000-07:00

       Thailand's industrial indexes have improved significantly since the start of the year, with the July manufacturing index contracting only 9 per cent year on year compared to 25.6 per cent in January, according to the Industrial Economics Office.
       The index in February contracted 23.1 per cent year on year, March by 23.1 per cent, April by 12.8 per cent, May by 12.4 per cent and June by 6.8 per cent.
       Arthit Wuthikaro, director-general of the office, yesterday said the month-on-month figures had also shown improvement since February, when the index rose 0.5 per cent from January.
       In March, the index expanded 14.2 per cent month on month. Due to political violence, the April figure contracted 8.7 per cent, before expanding 9.2 per cent and 6.6 per cent in May and June respectively.
       The July index, however, dropped 1.3 per cent from June.
       Arthit said that despite the July reversal, the index should return to positive territory soon due to new orders in several industries and many plants having to increase capacity as a result.
       July capacity utilisation stayed at 57 per cent, well above the trough of 50 per cent in February.
       Hard disk drives are one sector for which the manufacturing index has increased for three consecutive months, as manufacturers have been able to offer new products to customers. They are, however, concerned about a labour shortage.
       In the first seven months of the year, the sector's output and distribution dropped 6.3 per cent and 6.5 per cent respectively from the same period last year. The sector is expected to show positive growth in the fourth quarter.
       The frozen-food sector in July also enjoyed growth in manufacturing and sales.

List of harmful industries due next week

2009-08-27T20:03:00.002-07:00

       A list of harmful industries will take effect next week as authorities hope to allay investors' concerns about requirements for environmental and health impact assessments, Industry Minister Chanchai Chairungruang said yesterday.
       He said that while guidelines on environmental and health assessments for harmful projects were not yet finalised,those not on the list could follow existing environmental impact assessment procedures and proceed their projects.
       "Once we put it up as ministerial announcement, we want investment to resume as fast as possible," he said.
       Eight industries will likely be listed as harmful and will need extra environmental and community scrutiny.
       The list includes all underground mining, all sizes of tin and manganese mines,steel smelting plants with at least 5,000 tonnes of daily capacity, and petrochemical plants with 1,000 tonnes of daily output.
       The rules will also apply to industrial estates with steel or upstream or midstream petrochemical plants, all landfills or incinerators for hazardous waste, mineral smelting with chemicals, fossil-fuel power plants of 100 megawatts or more,natural gas or other energy sources of 500 MW and nuclear power plants.

ALLIANCE WANTS HALT TO MAP TA PHUT PROJECTS

2009-08-27T20:03:00.001-07:00

       The Anti-Global Warming Association and 43 Map Ta Phut villagers yesterday petitioned the Administrative Court to freeze all petrochemical projects planned for the industrial zone.
       They also asked the court to reverse the Cabinet's resolution on Tuesday that allowed the issue of operating licences to some petrochemical projects.
       The opponents said the licensing did not abide by Article 67 of the Constitution.
       Association president Srisuwan Chanya said the projects would cause trouble for the public and environment.
       Under the Constitution, all of the projects must conduct both an environmental-impact assessment and a health-impact assessment along with a public hearing. An opinion from an independent environmental body is also required.
       Villager Suthi Atchasai said if the petition received no satisfactory results, then on September 9 the Network of Eastern People would gather at the Map Ta Phut Industrial Estate.
       "We don't want to block investment but want to ensure that all investment is in line with the Constitution. We may block the port and the industrial estate, as well as the sites for the new plants, in order to send a message to all that pollution problems are not yet addressed," he said.
       Recently, the Industrial Estate Authority of Thailand (IEAT) awarded long-awaited operating licences to four industrial projects worth Bt17.55 billion, including one each to the PTT Group and the Siam Cement Group.
       Besides the four approved projects, 19 worth Bt305.45 billion are awaiting IEAT approval and 13 worth Bt59 billion are pending approval from the Industrial Works Department.

PROTEST PLANNED AFTER COURT REJECTS COMPLAINTS

2009-08-27T20:02:00.000-07:00

       Map Ta Phut residents yesterday faced double blows in their efforts against expansion of an industrial estate in Rayong province - a request to temporarily delay the construction of 76 new factories was turned down, and a lawsuit accusing high-ranking officials of negligence in enforcing protective measures in the estate dismissed.
       The Central Administrative Court's decision to turn down the first request has prompted protest leaders to threaten a mass rally on September 9 to blockade the Map Ta Phut estate and seaports connected to it.
       Sutthi Atchasai said Rayong people did not want to hamper the massive investment in their home district but would like to see pollution-control conditions relating to the project were followed under constitutional requirements. "We are contemplating blockading the seaports and the estate, including the sites of the 76 new factories to be constructed soon," he added.
       Sutthi led 42 villagers to submit a petition to the court yesterday morning asking it to issue an injunction to temporarily order a halt to the coming construction of the 76 factories in an expansion phase of the estate until new environmental impact assessment (EIA) studies were conducted.
       The judges later ruled the court could not halt the construction but would wait for more information from authorities.
       A companion petition was also lodged with the court accusing eight people - five Cabinet ministers and heads of three regulatory bodies overseeing pollution-control measures - of negligence that resulted in the construction of the 76 factories going ahead without new EIA studies.
       The second petition also requested that the eight issue more pollution-control regulations and that three of the five ministers - overseeing Industry, Energy, and Transport Ministries - revoke licences already granted to construction projects outside the estate that would soon begin without EIA or other conditions being followed.
       Srisuwan Janya, a lawyer allied with the villagers' group, who also represented two non-governmental organisations advocating environment protection and against global warming, said the eight violated laws by approving the construction without a public referendum and without giving mandatory approval for the setup of an independent body to study the projects.
       The judges ruled in the afternoon that, in the first petition, the villagers failed to provide information on when exactly the construction would begin and end; and in the second petition, the court would wait for the eight to submit their case to the court.

Amata sees brighter outlook this half

2009-08-27T20:01:00.000-07:00

       Thailand's largest industrial estate developer, Amata Corporation Plc, expects stronger performance in the second half due to the improving global economy and more stable local politics.
       The listed developer forecasts industrial land sales of 300 to 400 rai in the second half, after selling only 50 rai, a 74% year-on-year drop, in the first half.
       "We have a number of potential customers on hand that have been negotiating for a long time. I am confident that these investors will finally conclude their purchasing deals with us within this latter half of the year," said director Viboon Kromadit.
       "Investment decisions have been delayed for too long and improving economic indicators should bring interest."Amata's forecast assumes there will be no further political unrest to dampen investor sentiment.
       The company is in discussions with investors from the agricultural, automotive and chemical industries, said Mr Viboon.
       Land sales account for 38% of the group's income with the rest coming from utilities supply and rental charges.
       Amata hopes to attract Chinese investors and benefit from a Chinese venture fund that will invest in Thailand.
       Chinese investors are forming a 20- billion-yuan (100-billion-baht) fund to finance investments in Thailand. The fund, which will be finalised by year-end, will facilitate more Chinese companies building production plants locally.
       Chinese firms that relocate to Thailand will be supported by the government policy to promote foreign investment. China's poor reputation for product quality has led many firms to relocate to countries such as Thailand. Rising labour costs in China is also seeing companies shift their operations elsewhere, he said.
       Mr Viboon said he was confident Amata's strong relationship with Chinese investors will allow it to gain from the venture fund more than other industrial estate developers.
       AMATA shares closed yesterday on the SET at 6.70 baht, down 10 satang, in trade worth 109.69 million baht.

CHARNCHAI DEFERS DECREE ON POLLUTION

2009-08-24T21:49:00.000-07:00

       The Industry Ministry yesterday postponed to the beginning of next month its decree for controlling industrial plants with serious environmental impacts.
       "I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
       "I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
       Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
       The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
       However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.

Parents left in dark as children suffer from lead poisoning

2009-08-21T21:11:00.000-07:00

       Every parent in the village of Sunjianantou knows exactly how much lead is in their child's blood after 800 youngsters living near a smelting plant tested positive for lead poisoning this month.
       But like millions of other Chinese villagers tight up against smelters,industrial plants and mines, the parents of Sunjianantou, in Shaanxi province,have very little idea of the dangers of lead poisoning, how it occurs, or how to avoid it. Nor are they likely to find out.
       "Please tell us, can the lead ever go away or not?" asked the mother of Pengfei, eight, whose test results of 249 micrograms per litre explain how an active boy slowly turned pale and listless.
       "We get our water from our family well. We have no idea if it is safe enough,or what to do about food. The government isn't testing adults, so we don't even know if we are poisoned too."
       The acceptable level of lead in blood in the US is 10 micrograms per litre.
       In China, the average level for children under six living in cities is 59.52 micrograms per litre.
       This month, two cases of lead poisoning of children living near metal smelters came to light in Chinese villages thousands of kilometres apart, showing the prevalence of the problem.
       Parents from Sunjianantou and other villages attacked the Dongling lead smelter this week, after hundreds of children living near the smelter tested with high lead levels.
       On Aug 8, parents blocked a road and flipped a police car in Wenping town,southwestern Hunan, in protest against toxins from a manganese smelter.
       In that town,1,354 children tested with blood lead levels of over 100 micrograms per litre.
       A child who ingests large amounts of lead may develop anaemia, muscle weakness and brain damage. Where poisoning occurs, it is usually gradual.
       Protests against pollution are increasingly common in China, though police normally try and nip them in the bud before they become violent.
       In other cases, officials show up and mollify residents with promises of financial or other aid.
       In Sunjianantou, parents who spoke with foreign reporters were visited by local officials and warned not to do so again. At least 10 police cars were stationed outside the idled smelter. A dozen more patrolled the main street.
       "Mass incidents"- or riots and protests - sparked by environmental problems have been rising at a rate of 30%per year, said China's environmental protection minister, Zhou Shengxian.
       At the same time, the boom in metal prices has made investment in mines and smelters very profitable, and dangerously polluting plants have sprung up across the Chinese countryside.
       Local officials, who worry about losing a large taxpayer and employer and may even have a stake in the projects, often turn a blind eye to safety and environmental violations.
       When protests or a crisis does occur,local governments react by shutting the plant, detaining troublesome villagers and paying the rest, or offering emergency medical treatment.
       "When a problem bursts out in the media, the government suddenly 'solves'it," said Zhang Jingjing, a lawyer with the Centre for Legal Assistance to Pollution Victims."But that's usually not a good result, it's just a way to make the problem go away." She is trying to bring a lead poisoning case to court to set a precedent that could be used against polluting plants across China.
       Children with relatively light poisoning are supposed to be treated at home, but such is the level of distrust of local government some parents are even unwilling to give their children the recommended medicine.

PM okays industry permits

2009-08-19T20:41:00.000-07:00

       Investment projects waiting in the pipeline worth almost 400 billion baht have been given the go-ahead for permit approval with the support of Prime Minister Abhisit Vejjajiva, according to the Industry Ministry.
       However, new projects categorised as harmful need to wait for permit guidelines to be finalised, said Sorayud Petchtrakul, an adviser to the Industry Minister. The public-private partnership committee chaired by the premier agreed to follow the Council of State's advice that state agencies can give permits to investment projects with environmental impact assessments (EIA).
       Mr Abhisit is worried about halted investment projects left in the pipeline for too long, said Mr Sorayud.
       The Industrial Works Department has 13 projects worth 59.5 billion baht waiting in the pipeline, while the Industrial Estate Authority of Thailand (IEAT) has 23 projects worth 323 billion baht seeking construction and operation permits in its industrial estates in Rayong province.
       Ten of the projects before the Industrial Works Department are power plants, while those seeking permits through the IEAT include the steel,power plant and petrochemical sectors.PTT Aromatics' Euro4 diesel refinery is on the IEAT list.
       "Now that we have the nod from the PM, the permit approval process should start immediately," said Mr Sorayud.
       He added that operators who feared their permits would be against the Con-stitution should not worry as permit grantors are state agencies that exercise their authorities according to the PM's direction.
       However, Suthi Atchasai, leader of the People's Eastern Network, threatened that if the cabinet endorsed the public-private partnership committee's decision, his network would oppose the government for acting against the Constitution.
       He said the current Constitution took effect almost two years ago and the government has had sufficient time to form the guidelines but has neglected to do so. While the hurdles for EIAapproved projects are removed, new investment that falls onto the harmful list still needs to wait for guidelines to be formed that accommodate Section 67 of the Constitution.
       No timeframe has been set for these guidelines, but the Industry Ministry has finalised the list of industries classified as harmful to the environment and community. There are 15 categories on the list, which will be made public when Industry Minister Charnchai Chairungruang signs a ministerial announcement on Monday, Mr Sorayud said.
       He said the list would help investors prepare for additional environmental and health requirements.
       Industries on the list will include underground mines, zinc, manganese and tin mines, upstream and midstream petrochemicals, upstream steel projects,radioactivity production or management, hazardous waste management,commercial airports with at least 1.5 kilometres of runway, seaports capable of accommodating at least 10,000 tonnes gross of hazardous air pollutants, dams,irrigation projects, power plants, nuclear power plants and genetically modified activities.

"Eco-towns" project a step closer to reality

2009-08-18T22:32:00.000-07:00

       The Industry Ministry plans to allocate more than Bt100 million to move its "eco-town" project to the next stage, with Map Ta Phut as a pilot location.
       The project was initiated to encourage manufacturers to reduce toxic emissions and turn industrial waste into energy or value-added materials.
       Plants located in an industrial estate, including Map Ta Phut, will plan together and create a supply chain to reprocess their waste as raw materials for one another.
       This project was launched in 2007 to promote green industry. Two industrial estates will be developed as eco-towns by 2012 and eight more by 2017.
       Federation of Thai Industries vice chairman Payungsak Chartsutipol yesterday said the Industry Ministry would report the project's progress to the public-private partnership meeting next Wednesday.
       "This is an important and creative development project, because it will help ease local communities' |environmental concerns and add more value to industrial waste," he said.
       Starting with Map Ta Phut, the ministry plans to expand this project to all industrial estates in the country, as well as create a cluster of eco-towns, particularly for small and medium-sized manufacturers, on an industrial estate in Ayutthaya or Samut Sakhon province.
       "The amount of waste from each small and medium-sized plant is sometimes not worth transforming into renewable energy or insufficient to sell as a raw material to other plants.
       The eco-town will be another solution for them," he said.
       The plants in areas designated as an eco-town will be forced to release less waste and emit less pollution than required by law or regulations and to shift to using more recycled and reused materials.
       The Board of Investment will consider additional tax incentives to attract manufacturers to join this project, he added.
       Yesterday, the Industrial Promotion Department signed an agreement with the Japan External Trade Organisation to launch a "Japan Desk" in a bid to tighten trade and investment ties between local and Japanese manufacturers.
       The three-year project will focus on the transfer of knowledge and technology and will develop Thai goods to meet the demands of the Japanese market, said Industry Minister Charnchai Chairungrueng.
       The Japan Desk will also act as a consultant for Japanese operators who would like to expand and invest here.

EGAL HURDLE DELAYS PROJECT APPROVALS

2009-08-18T22:30:00.000-07:00

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

Govt under fire over impact agency delay

2009-08-18T22:28:00.000-07:00

       An environmental advocacy group has accused the cabinet and a senior bureaucrat of ignoring a constitutional rule requiring an independent agency to be set up to investigate sensitive industrial projects.
       In a complaint to the ombudsman,Srisuwan Janya, chairman of Stop Global Warming Association, says the cabinet and Environment Ministry permanent secretary Saksit Tridech are dragging their feet in establishing the independent agency.
       The cabinet and Mr Saksit were being lax in following the requirements of Article 67, which could affect people living close to heavy industry zones.
       Article 67 prohibits any project or activity which might damage the environment, natural resources or biological diversity until the impact on the environment and the health of people in nearby communities had been evaluated.
       The public and interested parties must be consulted. It also requires an independent agency to be established.
       The ministry ordered the Department of Environmental Quality Promotion and related agencies to draft a bill to set up the agency.
       Mr Saksit dismissed the complaint,saying the bill was in the pipeline.
       "We are waiting for more comments from relevant agencies," he said.