EEC’s Boards Greenlight 4 Megaprojects Total ฿470bln. Con. Sectors Await Contract Signing

Mr. Kanit Sangsubhan, secretary general of Eastern Economic Corridor Office of Thailand (EEC), said that the Boards of EEC has approved 4 more megaproject investments worth 470 billion baht. The Boards had also approved the high-speed rail project that would connect all three airports and invited private companies to join in the investment this October.

 

These 4 megaprojects are:

1. U-Tapao Airport development and eastern aviation hub with a total of 290,000 million baht of investment (฿17.768 million from the government, and ฿272,232 million from private companies). Royal Thai Navy will act as the head of the project. Besides the government’s investment in runway 2 & taxiway, there are other 6 joint projects as follow:

1. New Terminal (3rd)
2. Commercial Gateway and Ground Transportation Center
3. 2nd Phase Maintenance Center (aside from 500 rai in 1st phase)
4. Free Trade Zone (Cargo Village) and related businesses
5. Logistic Center (Cargo Complex)
6. Aviation Training Center including public utilities and control towers.

2. Aviation Maintenance Center with a total of 10,588 million baht of investment (฿6,333 million from government and ฿4,255 million from private sector). Thai Airways International Public Company Limited Company (THAI) will act as the head of the project for heavy maintenance/base maintenance, aircraft painting, and other maintenance if any.

3. 3rd Phase Laem Chabang Port with a total of 114,047 million baht of investment. The Port Authority of Thailand will act as the head of the project to increase the capacity of containers from 11 million twenty-foot containers to 18 million twenty-foot containers. The Port Authority of Thailand will process land reclamation, while the private companies will invest in port service starting from enhancing F1 and F2 port with modern automatic systems.

4. The development of Map Ta Phut Industrial Port Project Phase 3 to expand the capacity of natural gas and other liquidate shipment, and upgrade these two ports to region ports. The Industrial Estate Authority of Thailand will act as the project leader.

 

The total investment of all 5 projects (including high-speed rail project) is 652,559 million baht, dividing into two portions. A total investment of 209,916 million baht (32%) from the government and 442,643 million baht (68%) from private companies. which will return 819,662 million baht to Thai economy, excluding employment. While the return of this project will go to the government 446,960 million baht, and private companies 112,755 million baht.

 

Furthermore, the committee also acknowledges another 8 urgent projects to develop the basic structure of digital utilities in 5 years to support EEC as the regional economic hub. These 8 projects are:

1. Digital Park Thailand and IoT(Internet of Things) institution
2. Develop Advanced Big Data, Cloud and Data Center (ABCD)
3. Automated Postal Distribution Center
4. IoT Smart City
5. 5G Testing Center
6. Develop IoT infrastructure in EEC
7. The infrastructure, wiring harness fiberglass cable and i-Pole project
8. ASEAN Digital Hub

 

The approval of these megaprojects has high tendency to drive the share price of AMATA / WHA / STEC / CK / ORI and ATP30 significantly.