Project’s blueprint undergoing changes
PUBLISHED : 2 Jul 2024 at 04:46
A draft of the Southern Economic Corridor (SEC) bill is expected to be ready for submission to the cabinet by the end of September, as the government is keen to start the construction of the one-trillion-baht Land Bridge megaproject in 2026, according to Transport Minister Suriya Jungrungreangkit.
Mr Suriya said on Monday that the project’s blueprint is currently undergoing some readjustments to meet the expectations of foreign investors and local residents.
The process is expected to be completed within the third quarter, he said.
The Office of Transport and Traffic Policy and Planning (OTP) has sent the draft to the ministry for consideration, after which the draft will be sent to the Special Economic Zone policy committee for further deliberation.
It’s expected the cabinet will review the bill in September before it reaches parliament for endorsement in April next year.
The megaproject’s environmental impact assessment (EIA), which will form the basis for the seaports’ development plan, is expected to be completed and submitted to the Office of Natural Resources and Environmental Policy and Planning (ONEP) sometime next year.
A Request for Proposal (RFP) to get investors to join the bidding process is also being drafted. The list of approved investors will be finalised by the third quarter of next year.
The contract signing is expected to take place in early 2026, Mr Suriya said.
Construction will be divided into three phases: the first phase is expected to start in 2026 and finish by the end of 2030; the second is to start in 2031 and finish by 2034; and the last phase is to start in 2035 and finish in 2036.
It is estimated the project will cost about 1 trillion baht — with 330 billion baht allocated for the construction of Ranong Port, 305 billion baht for Chumphon Port and 358 billion baht for supporting logistical infrastructure, including interconnecting railways and motorways.
The financial internal rate of return (FIRR) for investors is estimated at 8.62%, Mr Suriya said.
According to OTP’s report, which cited figures from the National Economic and Social Development Council (NESDC), the project will boost the country’s gross domestic product (GDP) annual growth rate from 4% to 5.5%.