BBS lands B290bn U-tapao airport bid

The cabinet on Tuesday approved a bid by the BBS consortium to build the 290-billion-baht Eastern Airport City Project at U-tapao, said deputy government spokeswoman Ratchada Thanadirek.

She said the BBS consortium, which comprises Sino-Thai Engineering and Construction, Bangkok Airways and BTS Group Holdings, won the bid as it offered the best return to the state -- 305 billion baht under a 50-year contract.

After the contract ends, all the project's properties will belong to the state, she said.

The project will generate 305 billion baht for the government from the land lease and revenue-sharing agreement.

It is further expected to bring in 62 billion baht in taxes.

In the first five years the project is projected to create 15,600 jobs, the spokeswoman said.

Narita International Airport Corporation will be hired to run the airport, which is owned by the navy.

The contract signing between the consortium and the Eastern Special Development Zone Policy Committee is tentatively scheduled to take place on June 19 at Government House, said Ms Ratchada.

She added the project is expected to be complete by 2023.

The aviation city is one of five megaprojects under the government's infrastructure development plan in the flagship Eastern Economic Corridor (EEC).

The five projects, worth 695 billion baht, include a high-speed railway linking three key airports (225 billion); a maintenance, repair and overhaul (MRO) centre (10.6 billion); the third phase of Laem Chabang seaport (114 billion); and the third phase of Map Ta Phut seaport (55.4 billion).

The Eastern Airport City project, which covers 6,500 rai, includes a third passenger terminal at U-tapao airport, a commercial gateway and a ground transport centre, an MRO centre, a cargo complex and an aviation training centre.

The other two bidders for the project were a CP-led group -- which included Thana Holding, Italian-Thai Development, Ch Karnchang, B Grimm Joint Ventures Holding and Orient Success International -- and the Grand Consortium, comprising Grande Asset Hotel and Property, Asia Aviation and Christiani & Nielsen Thai.

Meanwhile, the cabinet yesterday also gave the navy the green light to seek 390 million baht to develop an aeronautical meteorology project from 2021-23.

That development will complement the Eastern Airport City project, said Ms Ratchada.