The Treasury Department has put several of its long-delayed commercial development plans worth a combined 90 billion baht and its low-cost housing scheme for the poor on the front burner for next year, says its chief.
Investment in these large projects has been stuck for years and the department hopes concession contracts for them can be signed off on in 2018, said director-general Patchara Anuntasilpa.
The projects include construction of a boutique hotel on a prime plot on the east bank of the Chao Phraya River, demolition of Queen Sirikit National Convention Center (QSNCC) to make way for a hotel, a commercial and residential complex at the Mo Chit project, the Chaeng Watthana Government Complex's Zone C and special economic zones.
Mr Patchara recently said a concession contract for the development of QSNCC that was granted to liquor tycoon Charoen Sirivadhanabhakdi's firm, NCC Management & Development Co, was being examined by the Office of the Attorney General. Under the plan, NCC plans to spend 6 billion baht to revamp the QSNCC into a 400-room, four- or five-star hotel with a 3,000-car parking lot and 28,000 square metres reserved for commercial activities.
For the low-cost residential projects, construction of 2,600 units will take shape next month, he said. Each unit will be at least 28 sq m.
The department will offer a 30-year term lease priced at 350,000-450,000 baht per unit. With the price, lessees are required to pay up to 2,000 baht a month.
The Government Savings Bank and GH Bank will take responsibility for providing leasehold mortgages, said Mr Patchara. The department could offer some incentives to attract property developers to develop state land in eight provinces including Bangkok, Chiang Mai and Chon Buri into low-cost homes because the profit for these projects is relatively low at 15-20%, he said.
The low-cost housing project is aimed at easing the burden of low-income earners, particularly recipients of the government's welfare and subsidy scheme.
The department has proposed the blueprint for the low-cost housing project to the Finance Ministry but still needs to adjust some details for fear of protests by people who reside in the proposed areas, said Mr Patchara. The project may need to seek opinions from those living near the state land to be developed into low-cost residential projects, he said.
The department is building two low-cost housing projects in Bangkok and Phetchaburi provinces. The Bangkok project is targeted at low-ranking state officials, while the one is Phetchaburi is for everyone.
In another development, Mr Patchara said the department is preparing to raise its rental fees to match market conditions, with the new rate applying to new rental contracts.
The department aims for 7.4 billion baht in revenue from land development, rental and minting coins next year.