Treasury Department backs Thai SEZs

BANGKOK, February 18 (TNA) - The Treasury Department, under the Ministry of Finance, supports the establishment of Thailand's special economic zones (SEZs) along the border by renting its plots of land for them. A contract was signed in Bangkok on Thursday by Treasury Department Director-General Chakkrit Parapuntakul and Industrial Estate Authority of Thailand (IEAT) GovernorVerapong Chaiperm, under which the Treasury Department first rents its plot of land of 650 rais (2.5 rais = 1 acre) for the establishment of a Thai SEZ in Aranyaprathet District of Sa Kaeo Province bordering Cambodia in order to boost local economy and strengthen relations with neighbouring countries. The rental duration of the plot of land lasts 50 years, during which IEAT receives a 30 per cent discount from the 32,000 baht per rai rental fee annually. An environmental impact assessment (EIA) is underway in the area and is expected to be completed next month. Building construction in the area is expected to start later this year, as the Thai SEZ has been set to start its operation next year. So far, some six investors have expressed their interest in investing in the area, while a rental fee to be charged from the investors is around 160,000 baht per rai per year. It is estimated that up to 50 investors should be allowed to occupy and invest in the SEZ, earning IEAT four billion baht annually. Both government agencies also plan to sign, later this year, more land rental contracts for Thai SEZs in Sadao District of Songkhla Province in the Thai South bordering Malaysia, covering a plot of land of 1,196 rais, and in Mae Sot District of Tak Province in the Lower Thai North bordering Myanmar, covering a plot of land of 836 rais. (TNA)