U-Tapao International Aviation Co Ltd (UTA) has extended its project timeline for a concession agreement at U-Tapao Airport till next month in order to finalise key investment incentives and other details, said Keeree Kanjanapas, chairman of the company’s executive board.
Although UTA signed the agreement for the U-Tapao Airport and Eastern Aviation City Development Project more than five years ago, it has yet to gain full access to the project site.
This is largely due to unresolved infrastructure issues, most notably delays in the high-speed rail link connecting Suvarnabhumi, Don Mueang and U-Tapao airports, he said.
Mr Keeree reaffirmed UTA’s commitment to working closely with the Eastern Economic Corridor (EEC) Office, its contractual partner, stressing U-Tapao’s strategic role as a driver of regional growth.
However, he acknowledged that progress has been hampered by slow advancement in related infrastructure projects.
The EEC recently requested an additional extension, moving the deadline from June to December, to resolve these complications.
To accelerate progress, UTA has signed a new memorandum of understanding (MoU) with the EEC, granting more time to finalise investment privileges, particularly tax incentives within the planned free trade zone.
Mr Keeree noted that investment incentives have become the most critical issue amid a sluggish global economy and cautious investor sentiment.
While admitting that Thailand’s incentive packages may not match those offered by neighbouring countries, he urged policymakers to provide clear and competitive terms to boost investor confidence.
‘Once we have a clear framework for tax rates, free zones, and other benefits, we’ll begin our investor roadshow,’ he said. ‘The EEC is supportive, but right now there’s nothing strong enough to attract investors.’
Despite these challenges, UTA remains determined to move forward, he said.
Mr Keeree said the company expects a clear roadmap by December, after which infrastructure development will begin and the aviation city project will open to both domestic and international investors.
When asked about Transport Minister Phiphat Ratchakitprakarn’s proposal to extend the rail line to Trat province, Mr Keeree, whose BTS Group Holdings is part of the BSR Joint Venture which, in 2018, participated in the high-speed rail project bidding (and failed), responded briefly: ‘They can do what they wish.’