BTS Group Holdings (BTS) won’t abandon U-Tapao airport and Eastern Aviation City development project, awaits EEC’s finalisation of investment benefits
Keeree Kanjanapas assures BTS will continue with U-Tapao aviation city project, awaiting EEC’s final decision on investment benefits to move forward with plans and roadshows
Keeree Kanjanapas, Chairman of BTS Group Holdings, confirmed that the company would not abandon the U-Tapao airport and Eastern Aviation City development project, in which BTS holds shares through the U-Tapao International Aviation Co., Ltd. (UTA), along with three other stakeholders, including Bangkok Airways and Sino-Thai Engineering and Construction.
Despite delays in the project, which began with the bidding process over five years ago, Keeree emphasized that the shareholders were committed to moving forward. The project has faced significant setbacks, particularly due to uncertainties surrounding infrastructure investment, such as the high-speed rail link connecting three airports, and the lack of a clear Notice to Proceed (NTP) due to unresolved issues regarding investment benefits for the bidders.
The company has been in talks with the Eastern Economic Corridor (EEC) to expedite the resolution of these investment benefit issues. Keeree highlighted that clarity on aspects like infrastructure, such as the high-speed rail, expressways, and passenger terminal buildings (with a capacity of 12 million passengers per year), as well as tax incentives, was critical to attract investment.
He pointed out that to compete with regional countries like Singapore, Vietnam, and China, the project needs a 10.2% investment return rate (IRR). If these benefits are finalised, BTS believes it could attract over 200 billion baht in investments.
Keeree confirmed that the project would cover not just the 6,500 rai of U-Tapao airport but also the surrounding area of hundreds of thousands of rai. He expressed confidence that UTA and its partners would continue working closely with the EEC to bring the Eastern Aviation City to fruition.
“We remain committed to the U-Tapao project and expect to finalise details with the EEC by December. We will update the media and the public on the progress and future direction of this project,” said Keeree.
Source: https://www.nationthailand.com/business/investment/40057543
