EEC advises CP Group to appeal to BOI for extension of promotion privileges
The Eastern Economic Corridor (EEC) has advised the CP Group to appeal to the Board of Investment (BOI) for an extension of the investment promotion privileges for the high-speed rail connecting 3 airports.
The existing BOI privileges for the project expired on January 22.
According to Chula Sukmanop, secretary-general of the Eastern Economic Corridor Office of Thailand (EECO), the EEC believes that an appeal to the BOI is the best way to move the project forward. The BOI is responsible for granting investment promotion privileges, such as tax breaks and import duty exemptions, which significantly benefit investors.
The CP Group has already submitted a letter of appeal to the BOI. The EEC is confident that the BOI will consider the appeal favourably, as this major infrastructure development project is important to the national economy.
The high-speed rail connecting 3 airports is a 220-kilometres line that will link Bangkok's Suvarnabhumi and Don Muang airports with U-tapao International Airport. The project is expected to cost 224.54 billion baht and is scheduled for completion in 2028.
Extensions of investment promotion certificates from the Board of Investment (BOI) have been granted three times, each for a period of 4 months. CP Group's subsidiary, Asia Era One Co Ltd which has been granted a concession to invest in and operate the high-speed rail project, has submitted requests for extensions twice, totalling 8 months. In this latest request, they have applied for an additional extension of 4 months, with the expiry set for May 22, 2024. However, the BOI has declined to approve the extension of the investment promotion license, pointing out that two previous extensions have already been granted.
Deputy Prime Minister and Commerce Minister Phumtham Wechayacha, in his capacity as the chairman of the EEC Committee, said that he is aware of this issue, but is awaiting a detailed report from the committee. He has provided policy guidelines to the EEC secretary-general, instructing a thorough examination within the legal framework.
If it can be implemented and move the project forward, he requests expeditious action. The high-speed rail project is considered crucial for the EEC and is deemed necessary due to its significance as a vital infrastructure project.
The project is expected to generate significant economic benefits, including increased tourism, improved connectivity, and job creation.
