Thailand’s Board of Investment (BOI) has launched an investment incentive scheme aimed to increase investors' confidence related to the Eastern Economic Corridor (EEC). New incentives apply for the U-Tapao Airport’s Passenger Terminal 3 and Digital Park Thailand (EECd) development projects, two among six major development projects in the EEC.
With the biddings for the development of both projects planned for late 2018, BOI has offered the incentive scheme to attract more investors to participate in the biddings. For the U-Tapao Airport’s Terminal 3 development project, the bidding winner will be granted exemption of import duty on machinery and 8-year corporate income tax (CIT) exemption. In case the developer has cooperation with an educational institution to develop human resources, the BOI will grant 50% reduction of CIT for another three years under the EEC investment incentive scheme.
Concerning the bidding winner of the Digital Park Thailand or EECd, BOI will grant import duty exemption on machinery and CIT exemption for eight years. The investment project including cooperation with the educational institution to develop human resources will enjoy an additional four-year tax holiday.
The U-Tapao Airport’s Terminal 3 is part of the Aerotropolis development project, which includes the construction of a USD 7.1 billion (THB 233 billion) Passenger Terminal 3 which will increase the airport’s passenger handling capacity from 5 million passengers to 22 million passengers in 2033, and increase flight handling capacity from currently 25,000 units per year to 120,000 aircraft per year by 2033. When completed, the project will cover additional passenger terminals, cargo zone, cargo & logistics village, commercial gateway, MRO zone, and the aviation training center.
Other infrastructure development related to the EEC includes the construction of the USD 6.8 billion (THB 224 billion) high-speed train linking the three airports -- Don Mueang Airport, Suvarnabhumi Airport and U-Tapao, the USD 4.7 billion (THB 155 billion) development of Laem Chabang Port Phase 3 which increases container throughput from 7.7 million TEUs per year to 18.1 million TEUs per year, and USD 306-million (THB 10.1 billion) Map Ta Phut Port Phase 3 which be able to handle 19 million additional tons of cargo (petrochemicals and natural gas) upon completion. The development of U-Tapao Airport, high-speed train, Laem Chabang Port, Map Ta Phut Industrial Port and MRO Center are included in the Public-Private-Participation (PPP) fast track program which shortens bidding process from 40 months to 8-10 months.
(Sources: Thailand Business News; Board of Investment, Thailand)