Investment/EEC

Chatrudee Theparat

EEC will attract local people who own land plots surrounding Chachoengsao and Pattaya stations of the high speed rail connecting three airports to participate in the transit oriented development (TOD).

Chula Sukmanop, secretary general of the Eastern Economic Corridor Office ( EECO), said that the EEC is preparing to host and attract local people who own land plots in the surrounding area of Chachoengsao and Pattaya stations of the high speed rail connecting three airports ( Don Mueang, Suvarnabhumi and U Ta-pao airports) to participate in developing areas around two mass transit stations or the Transit Oriented Development (TOD).

Chula Sukmanop

The agency projected TOD development of two stations may attract 64 billion baht of private investment. The development plan is a solution to share the benefits with the villagers who own the land which the agency can help them to maintain their land rights or prevent the land rights belonging to landlords.

In the guideline development for the area surrounding the transit stations of the high-speed rail consisted of nine stations.

He said the government will develop infrastructure projects that are beneficial to the development of community areas and society in the two stations including the Chachoengsao and Pattaya stations. Two stations will be declared as a special economic zone to promote investment as well.

TOD Chachoengsao station

The development of TOD at the station area will be implemented first at Chachoengsao station area with 321 rai.

There is an idea of integrated development of 9 projects with an approximately 18.98 billion baht investment. Projects include such as an urgent transition support center with a short term of 5 years development plan. The others are modern retail business center, community shops for OTOP products, premium housing, office building (home office) with long term 10 years development, housing for senior citizens and hotels.

TOD: Pattaya Station

The TOD Pattaya station area is planned for the land plots of 280 rai. The station’s integrated development included 7 projects with an approximately 46 billion baht investment cost.

The short-term projects (1-5 years) included a transportation facility, long-term mixed use complex (6-10 years ), residential development, commercial areas, national exhibition and convention centre.

Chula Sukmanop

“In fact, the development model of the area surrounding the train stations was a study by the Office of Transport and Traffic Policy and Planning(OTP) for a long time but without real action. EECO will take responsibility to attract landowners to join the project and allow the private sector to become developers.

In the past 2 years, EECO organized a public hearing among the community, private sector and related parties in order to use it as a development guideline. More than 80% of the participants showed an intention to join the project development.

Project starts, once cabinet approves

“Once the cabinet approves to move forward the high-speed rail connecting three airports. We have to hurry up to launch the TOD development because land prices will increase more 20-30%. Once the rail connecting the three airports are completed, the land prices are projected to increase by 100%.” Mr Chula said.

“This model development will allow the villagers who currently own the land, which is mostly rice fields, to get full benefit. They can generate income from land development without selling the land to the investors, as well as they can preserve their property.”

The operating procedure is currently in the process of approval by the EEC board and later for cabinet approval.

U-Tapao airport’s construction project

Wirawat Panthawangkun, chief executive office U-Tapao Company International Aviation Co (UTA), a developer of U-Tapao airport and Eastern Aviation City, said that when the government can settle on the amendment the contract of the high speed rail, UTA will start a construction of U-Tapao airport

He said U-Tapao airport and aviation city is a twin project with the high-speed rail project connecting three airports. If the high-speed train doesn't come to the airport. It can't be developed as an aviation city.

“It is a condition that both projects must proceed at the same time. When the government approves contract amendments of the Asia Era One Company Ltd, the developer of the high-speed rail project connecting three airports which is a joint venture among the Charoen Pokphand Group Company and partners can move forward.”

Investment of UTA and partners in the U-Tapao airport and Eastern Aviation City project will be made immediately implemented with a 320 billion baht investment cost. There is also government investment in the construction of taxiways totalling 23 billion baht.

“There will be an investment in the high-speed rail totaling 234.54 billion baht, so it is very necessary to push the project forward because in the next 10 years it will increase the gross domestic product per year by around 262 billion baht, continuing for 40 years.”