Thailand’s Treasury Department To Work On Delayed Projects

Business

The Thai Treasury Department is setting its sights on getting back on track with 2 of its delayed, large-scale projects this fiscal year, according to a statement released recently via the Treasury’s Chief.

The first of these two projects is the development of a new, boutique hotel on a land plot in prime location, on the eastern banks of the Chao Phraya River. The other project is to be done in order to make way for a new hotel near Central World, that is the demolition of the long-standing Queen Sirikit National Convention Centre (QSNCC).

Patchara Anuntasilpa, the Treasury’s Director-General, said that the Office of the Attorney General is currently handling and examining the concession contract for the development of the QSNCC, which was granted to NCC Management and Development Co. a while back.

The NCC is owned by Charoen Sirivadhanabhakdi, a local liquor tycoon, who plans  to spend the Bt6B, in order to revamp the QSNCC into a 400-room luxury hotel near Central World, complete with accompanying 3,000-car parking space and 28,000m2 space for other commercial activities.

With regards to the Chao Phraya River development, SET-listed U City, which owns a plot of land on the eastern banks of the river, has offered payment to the government in exchange for permission in order to renovate the 100-year-old Customs House there into a brand new, luxury hotel. U City has offered Bt1.3B to the government, and their current plans for the Customs House is set to cost at least Bt900M.

U City was once name Natural Park, but was re-branded following amalgamation with BTS Assets Co. and Kamkung Properties Co. from BTS Group Holdings. Last 2005, this consortium also managed to win a 30-year concession contract from the Treasury Department. This contract allowed the consortium to develop and manage a boutique hotel on a five-rai plot located on Charoen Krung Road.

These two developments are part of the Treasury Department three larger projects, which, when combined, account for an investment worth of Bt33.8B. All these three projects have been delayed for quite some time now, having experienced no progress at all. The third project of this group, a residential complex set to be built in Mor Chit, is currently undergoing construction design changes, and, consequently, further delays.