Projects with EIA can go ahead in Rayong

"At a National Environment Board [NEB] meeting, we discussed whether projects with EIA approval could carry on [and decided they could]. However, projects awaiting EIA approval should be delayed until the pollution-reduction plan is completed," said Sorayud Petchtrakul, an adviser to the industry minister.

The NEB designated Map Ta Phut and other parts of Rayong province as a pollution-control zone on April 30.

The pollution-reduction plan is being formulated by Rayong's provincial officials and local communities in collaboration with public agencies such as the Pollution Control Department and the Industrial Estate Authority of Thailand.

Petrochemical projects that are waiting for EIA approval are worth about Bt200 billion, while those that have received approval and can proceed have a combined investment of more than Bt100 billion, Sorayud said.

To reduce confusion among investors, he said the former pollution-reduction plan, which was brought in when Surayud Chulanont was prime minister, would remain effective until the new one is in place.

The Board of Investment has written to the NEB about the effects on investors of the declaration of the pollution-control area, seeking a clear explanation that can be given to companies. It expects a response within two weeks, Sorayud said.

Meanwhile, the petrochemical investments by Siam Cement Group (SCG) and PTT in Map Ta Phut remain on track.

PTT is proceeding with construction of its Bt100-billion petrochemical complex, including a sixth gas-separation plant, olefins capacity expansion, downstream products and associated utilities. It will gradually start operations from this year through to 2011.

SCG has a joint venture with Dow Chemical to expand products in the field of higher alpha olefins. The JV expects to start up the plants next year.