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Published on April 18, 2008

The Nation

"The contract clearly specified that NCC must follow the conditions in the first four years to win a contract renewal," a Finance Ministry source said yesterday. "In this case, it has failed."

NCC is part of liquor tycoon Charoen Sirivadhanabhakdi's business empire.

The source said the 1996 contract included a provision to build a 23-storey hotel by 2002, but high rises are banned within a "green zone". Under the contract, if the hotel was erected and NCC started to pay rent to the government in 2002, NCC would be automatically granted a 25-year extension.

The contract with the Treasury Department obligated NCC to forward Bt11 billion to the government as rent for the 53-rai plot for 25 years, starting from the completion of the premises.

After the lease, all properties will be returned to the government.

A five-star 400-room hotel worth Bt2.7 billion is part of the contract.

The ministry plans to invest Bt5 billion to enlarge the centre, and call for new proposals to operate the complex.