Map Ta Phut ruling leads to suspension of Bt40 bn of investments

The projects are PTT's Bt20-billion seventh gas-separation plant, Star Petroleum Refining's Euro IV oil-standard upgrade worth US$500 million (Bt17.6 billion) and the Birla Group's Bt2-billion expansion of its epoxy-resin production capacity.

"This is initial information that we've received from our members. Apart from these projects, I was informed that investors, whose investment projects are ongoing, expressed high concern that the new pollution-control plan would affect their already-approved environmental-impact assessments," FTI chairman Santi Vilassakdanont said yesterday.

Ongoing investment projects in Map Ta Phut have a total value of more than Bt300 billion, of which most are in petrochemicals and are owned by the PTT and Siam Cement groups.

"Many foreign investors have inquired of us about the environmental standards in order to evaluate their investment here, but we have no idea how to answer them. Therefore, if possible, the new pollution-reduction plan should be completed within six months, with acceptance by all parties. Otherwise, investors may shift their investment to other countries when the economy recovers," he said.

Meanwhile, the FTI's monthly survey showed manufacturers' confidence fell from 64.1 points in January to 63 points last month, because of the economic slowdown, both domestically and globally.

FTI vice chairman Adisak Rohitasune said most manufacturers were clearly still worried about the global downturn and the country's political situation.

"The government needs to create a friendly atmosphere for investors by urging banks to grant more loans at low interest to the industrial sector and provide more tax cuts to help reduce their cost burden," he said.

The FTI survey showed the confidence level of some industries - gems and ornaments, ceramics, auto parts and paper and pulp - had nosedived below 40 points.

However, herb-making was the only sector that expressed high confidence at more than 100 points, as consumers turned to using local herbs to save money.

Meanwhile, Industrial Works Department director-general Ratchada Singkalavanich yesterday said that following the court's pollution-control designation, only those measures already implemented outside the new zone would remain valid.

Any pollution-reduction measures taken within the zone will be subject to review by the local community, which will be in charge of the programmes to be implemented in the controlled areas.

The department has allocated Bt60 million to combat pollution in Map Ta Phut in the current fiscal year. The budget for fiscal 2010 may be cut from the proposed Bt70 million, as the local communities may reject some of the plans.