Bt5bn allocated for reducing Mab Ta Phut emissions

20 April 2007 12:40  [Source: ICIS news]

BANGKOK (ICIS news)--PTT and Siam Cement Co will spend a combined baht (Bt) 4bn-5bn ($123m-154m) to reduce emissions levels at Mab Ta Phut industrial estate in a bid to ease government concerns over pollution, a local petrochemical industry leader said in an interview on Thursday.

 

"Even though the companies are already adhering to national environmental standards, they are voluntarily reducing emissions further to make room for future investment," Supachai Watanangura, head of the Petrochemical Industry Club at the Federation of Thai Industries, told ICIS News.

 

Complaints from neighbouring residents that pollution from the industrial zone was making them sick prompted the government to halt environmental impact assessment approvals until further studies were conducted.

 

Supachai said he has visited many local ommunities in the past few months in an effort to ease their concerns about pollution and two funds have also been set up to help the 25 towns and villages surrounding Mab Ta Phut.

 

Thailand's Industrial Estate Authority will give Bt10m directly to communities to improve quality of life, while it will also give Bt10m that will come under the supervision of the Rayong governor. BLCP, a company that operates a coal-fired power plant in the estate, is also giving Bt500,000 for community development.

 

Supachai said the capital investment programme would be part of a bid to encourage the government to lift its freeze on new petrochemical projects in Mab Ta Phut.

 

"Eight or 10 projects are waiting for approval," Supachai said, adding that they are mostly from PTT and Siam Cement.

 

Supachai said that it was becoming more urgent that projects get approved, as significant delays could cause petrochemical companies to miss the investment cycle. In addition, the delays would disrupt operations as the new projects are all interlinked.

 

"Map Ta Phut has been designed to create linkages between projects, but it has a huge weakness: it can be attacked easily," Supachai said. "What we have to do is go and convince the local communities that the industry here will look after you."

 

"If Mab Ta Phut is unsuitable, where would the next location be?" Supachai said. "If the government says go to the south, protests will be waiting for us there also."

 

The third phase of the national petrochemical plan calls for Bt200bn-300bn to be spent over the next decade. 

 

($1 = Bt32.5)

By: Daniel Ten Kate
+65 6780 4359

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