Sunday, October 11, 2009

STAKEHOLDERS STRUGGLE TO FIND WAY OUT OF MAP TA PHUT CRISIS

       Srisuwan Chanya, president of the Anti-Global Warming Association, scared off two of the country's largest industrial conglomerates last Friday when he told a Nation roundtable discussion that his successful legal action against 76 industrial projects in the Map Ta Phut and nearby areas was just the tip of the iceberg.
       Srisuwan's group and other non-governmental organisations on September 29 won a landmark victory when a court ordered a halt to these investments worth an estimated Bt400 billion.
       Industrial giants like PTT Group and Siam Cement Group (SCG) as well as their foreign partners were shocked by the Central Administrative Court's ruling.
       The government was no less disturbed, with Finance Minister Korn Chatikavanij telling the public the other day that GDP could be docked 0.4 percentage point next year in the wake of the court's injunction.
       Chonlanat Yanaranop, president of SCG Chemicals, told The Nation's roundtable discussion that his company's projects in the areas alone are worth Bt170 billion.
       Construction of these projects, some of which are joint ventures with foreign multinationals such as Dow Chemical of the US, are now at an advanced stage, he said.
       "Having been in business for 25 years, I feel this is really a big crisis for us and the country. It will directly hit 17,000 jobs, not to mention 130,000 workers in Map Ta Phut and nearby areas.
       "Construction of some plants is already 90 per cent completed and they are due to open in two to three months. We need to find immediate solutions [to rescue some of these schemes] in the next several weeks. We can't wait," he said.
       Chainoi Puankosoom, president and CEO of PTT Aromatics and Refining, told the roundtable that the suspension of these 76 industrial developments would set off a chain reaction.
       For example, some projects are petrochemical plants that will feed mid- and downstream industries such as plastics and other products.
       "They sued the government [for failing to abide by the Constitution's Article 67], but they effectively punished the private sector and investors," Chainoi said, referring to the role of green and public-health activists.
       PTT Aromatics' exposure in Map Ta Phut and other areas is also huge.
       It is committed to invest Bt200 billion in about 20 projects along with international partners. "We need to find solutions to this crisis or else foreign investors will be driven away. If the projects are |suspended for an extended period [beyond three to 12 months], they could become non-performing loans for banks.
       "Many foreign investors are confused and they could be looking for other countries such as Vietnam to move their projects. We should not hurt foreign direct investment in our own country.
       "I hope all stakeholders will open their minds and work together to solve this crisis. There are Japanese and other models in which heavy industry and people can live together harmoniously and safely.
       "In Japan, for example, petrochemical plants, which have 10 times more pollution than those in Thailand, can coexist with communities where rules and regulations are very strict. It's a matter of management," he said.
       Chonlanat of SCG said investors are ready to spend on technology that allows safer coexistence of industry and communities.
       Srisuwan of the Anti-Global Warming Association said that what is happening to industry in Rayong is no accident, given that there was plenty of time to abide by the 2007 charter, but successive governments did not.
       "The charter gave the government one year to pass organic laws to enforce Article 67 [which requires the public and private sectors to work with residents to get a consensus before polluting industrial plants can be set up in their areas]."
       "However, governments [from Samak Sundaravej to Somchai Wongsawat and the current Abhisit Vejjajiva] did not do so.
       "As a result, we had to resort to the Central Administrative Court to protect the communities' rights and welfare, resulting in the court's injunction.
       "We're not just targeting Map Ta Phut and Rayong province, but we intend to do the same against other industrial areas nationwide so that all are in compliance with the Constitution's Article 67," Srisuwan said.
       Nevertheless, Srisuwan is ready to open a dialogue with the government, investors, industrial firms and other stakeholders to resolve the conflict between industrialisation and the welfare of residents.
       The government has filed an appeal with the Supreme Administrative Court on the injunction slapped on the 76 industrial projects in Map |Ta Phut and other Rayong areas.
       "We're working on evidence and arguments to counter the appeal. We will not and cannot withdraw our lawsuit," Srisuwan said.
       Kosol Jai-rangsri, deputy permanent secretary of the Industry Ministry, told the roundtable that the Map Ta Phut crisis should lead to a review of Thailand's industrial policy.
       "It's a great opportunity to rethink the direction of national development.
       "Which industries should we promote to generate economic growth? Maybe, such a consideration will have to be beyond GDP.
       "It's not just a matter of economic costs and benefits anymore," he said.

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