A 700-rai plot of land in Bangkok’s Makkasan area, which includes a swamp, an Airport Rail Link station, a hospital and 497-rai of developable land, is due to be mooted shortly by Thailand’s Treasury Department. Large developers have been invited in order to set a clear direction for the development, according to the Bangkok Post. 

 Chakkrit Parapuntakul, director general of the Treasury Department, underlined the importance of this consultation by emphasising that the development could be delayed without this vital market feedback.

 This collaborative strategy comes after a number of controversies emerged surrounding the prime Makkasan plot, owned by the State Railway of Thailand (SRT).

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 The SRT’s notable debt burden of THB153 billion (USD4.5 billion) at the end of 2014’s fiscal year, according to the Bangkok Post, has forced the company to lease the plot for a period of time to the Finance Ministry in order to clear some of the debt. Problems began when the Treasury Department and SRT evaluated the rental value of the plot at wildly varying figures; the Treasury Department’s appraisal was for THB30 billion (USD890 million) whilst the SRT appraised the rental value at THB50 billion (USD1.5 billion).

 The SRT and Treasury Department are planning to settle the issue on 19 and 20 June 2015, after which they will send the result to the cabinet for approval. If no conclusion is reached, Chakkrit said his department would propose the decision be left to the State Enterprises Policy Commission.

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 The public reception to the development plans have also proved cumbersome, according to the Bangkok Post. The development area of 497-rai was originally planned to be a wholly commercial venture but public protects regarding yet more development on ‘green’ areas have ensured that whilst 317-rai will be commercially developed, a public park and a museum will also be situated on the Makkasan plot.

 The Treasury Department will be keen to avoid any more delays given the track record for stalled developments in prime areas of Bangkok. According to the Bangkok Post, the department is responsible for the development of a number of stalled projects including one at Mo Chit, the expansion of the Queen Sirikit National Convention Centre and the refurbishment of Customs House.

Image by Khemkhaeng and used under a Creative Commons licence