The Treasury Department is preparing to sign a contract for the Mo Chit Complex project worth 26 billion baht, after 25 years of delays, says director-general Yuttana Yimgarund.
The 63-rai development project is located across Chatuchak Park and Bangkok Terminal is the concession recipient.
The development plan is undergoing an environmental impact assessment, expected to be finalised over the next 2-3 months, with the Treasury Department signing a project contract with Bangkok Terminal afterward for construction to commence, said Mr Yuttana.
The Mo Chit Complex project has been delayed for more than two decades after the department signed a contract with Sun Estate, which was later renamed Bangkok Terminal.
In 2001, the Office of the Council of State ruled the project contract was illegal and the contract had non-binding terms. However, the Supreme Administrative Court ruled in 2013 the status of the contract had not been terminated and Bangkok Terminal and the Treasury Department would have to adhere to the contract.
The department then proceeded with project development in line with the Public-Private Partnership Act of 2013.
The Mo Chit Complex project has a total area of 888,000 square metres, with 112,000 sq m designated for transport and government use and 776,000 sq m allotted for commercial use by Bangkok Terminal.
The complex has a 30-year concession period and construction will take five years to complete following the contract signing process.
The concession stipulates the concessionaire is required to pay the department a land use fee of 550 million baht and rental fee during construction of 6.1 million baht per year, in addition to an annual 5-million-baht rental fee throughout the concession period after construction is completed.