NGOs push harder for independent environmental body

       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

       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

       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

       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

       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

       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

       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.