The Treasury Department's three large projects with total investment worth 33.8 billion baht remain on track, says its outgoing chief.
These are the development of a commercial and residential complex in Mor Chit, the construction of a boutique hotel on a prime plot on the east bank of the Chao Phraya River, and the demolition of Queen Sirikit National Convention Center (QSNCC) to make way for a hotel.
Negotiations over the investment framework, returns and obstacles for the long-delayed Mor Chit development project have already reached a conclusion, said Chakkrit Parapantakul, director-general of the Treasury Department.
The department has removed obstructions including adjusting the building setback to comply with the law governing urban planning, reducing the project's usable space to around 700,000 square metres from 800,000. It also allowed concessionaire Bangkok Terminal to commercially use a public area, but it must use the earned income for maintenance of the area.
Earlier this month the cabinet approved swapping Mr Chakkrit with Patchara Anuntasilpa, current deputy permanent secretary for finance, who will now head the Treasury Department. The reshuffle is pending royal endorsement.
Mr Chakkrit said a draft contract is pending the Office of the Attorney-General's examination before forwarding to the cabinet for approval.
The concession to develop the 63-rai Mor Chit project was won by Bangkok Terminal, but the company failed to start it because of legal obstacles, which have now been cleared after the Supreme Administrative Court ruled the contract was legal.
The project calls for a shopping mall, a serviced apartment and a hotel, he said. A 112,000 sq m area will be allocated to state agencies for usage.
The contract calls for the concessionaire to pay a fee for the land usage of 550 million baht, a rental fee of 5.35 million baht a year, an opportunity cost during the construction worth 509,000 baht a month, and compensation and interest of 1.29 billion to the Treasury Department.
Mr Chakkrit said a contract to allow N.C.C. Management & Development Co to develop the second phase of QSNCC is being examined by the Office of the Attorney General.
N.C.C. plans to spend 6 billion baht to develop the QSNCC into a 400-room, four- or five-star hotel with a 3,000-car parking lot and 28,000 sq m reserved for commercial activities. The amended contract calls for the department to earn up to 18.9 billion baht for the entire period, up from 14.1 billion.