Thai court suspends 25 petrochemical projects
By Gurdip Singh
PLASTICS NEWS
SINGAPORE (October 19, 2009) -- A Thai court has ordered the suspension of 25 petrochemical projects valued at 130 billion baht ($3.9 billion). But construction work is continuing because the
government has not issued a suspension order, according to Petroleum Authority of Thailand (PTT).
The projects are located at the Map Ta Phut Industrial Estate in Rayong province, south of Bangkok.
The court accused eight government units with violating Thailand’s constitution relating to environmental and health safety compliance.
Meanwhile, PTT insists that all of its projects have obtained environmental impact assessment approval that incorporated an investment to reduce an environmental impact.
PTT said suspending the project would hurt plastics processors and other sectors that rely on petrochemicals. The company estimates the court ruling would cost Thai companies 95 billion baht ($2.84
billion) in lost revenue and 18,000 jobs.
“Therefore, PTT Group, in association with other major manufacturers, will work closely together with the concerning government agencies to find the best solution for this mater,” said the
company in an email to Plastics News.
Prime Minister Abhisit Vejjajiva’s government has sought to resolve the issue, including a proposal to establish an independent environmental body.
The 25 projects that were suspended are part of a package of 76 projects worth 400 billion baht ($12 billion) that are scheduled for completion by the end of 2010.
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