The government will today appeal the Central Administrative Court's injunction on 76 industrial projects in Map Ta Phut and nearby areas in Rayong, in a bid to minimise the impact on investor confidence.
The PTT Group and the Siam Cement Group (SCG) yesterday acknowledged that the injunction would affect their investment schemes.
PTT, which has 25 of the 76 projects affected by the ruling, is considering filing a separate appeal with the court.
Prime Minister Abhisit Vejjajiva, who has ordered state agencies to appeal the ruling, insisted the government acted in accordance with Article 67 of the Constitution.
An appeal, if successful, would allow 14 projects that have already completed the environmental-impact assessment process, and received operating licences from the Industrial Estate Authority of Thailand, to proceed.
Citing the court's ruling, the premier said the government needed to reduce uncertainties as far as investor confidence is concerned.
Government agencies are alleged to have violated Article 67 in granting approval for the 76 projects to proceed even though the charter also requires a health-impact assessment, public consent and approval from the yet-to-be established independent environmental body.
Federation of Thai Industries (FTI) chairman Santi Vilassakdanont said many investors had voiced concerns over the injunction, as it ran against the government's investment-promotion policy.
Some foreign investors, particularly Japanese, have asked for clarity on the government's industrial promotion, he said.
Santi added that if the injunction were in place for a long period of time, foreign investment could shift to other countries, and without business expansion, the Kingdom's future employment prospects would be damaged.
A meeting will be called soon between the FTI, the Board of Trade and the Thai Bankers' Association to draw up proposals for the prime minister, who will attend a joint public-private meeting in the middle of next month.
In a statement yesterday, PTT said if its projects were suspended, there would be negative impacts on clients, business partners, financial institutions and supply-chain industries that could affect 100,000 jobs and local workers.
PTT chief finance officer Tevin Vongvanich insisted the group had upheld social and environmental concerns throughout its history. It has improved its operating systems and technology, he said.
EMISSIONS REDUCED
Under the pollution-reduction plan for 2007-11, the PTT Group has reduced the emission of nitrogen oxide by 43 per cent and sulphur dioxide by 45 per cent. Meanwhile, the group has reduced wastewater by 700,000 cubic metres and industrial waste by 378 tonnes per annum, he added.
SCG, another industrial conglomerate, yesterday informed the Stock Exchange of Thailand that the injunction could affect SCG primarily, but also its wholly owned subsidiary, SCG Chemicals, which is in the process of completing the construction of an upstream naphtha cracker, related downstream subsidiaries and joint-venture operations.
The original start-up for these projects was scheduled for between late this year and mid-2011.
SCG will work closely with all relevant government authorities to reach a joint solution that meets the concerns of all parties while minimising any effect on SCG Chemicals' investment projects, the group said in its filing.
Wednesday, September 30, 2009
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