Finance Ministry adds detail on 99-year maximum lease

A large plot of the SRT's land in the heart of the capital likely

to be transferred to the Treasury Department to be rented out

to the private sector for development. (Bangkok Post file photo).

Deputy Finance Minister Wisudhi Srisuphan has clarified

that the government's planned amendment to extend

the maximum lease term for state land to 99 years will not

include renting to the private sector as has been claimed.

The 99-year lease period will be offered only to state agencies,

 he said on Friday.

 Mr Wisudhi said the amendment of the maximum lease

 term to 99 years from 50 was aimed at facilitating the

debt-to-land swap deal by the State Railway of Thailand

(SRT) and the Finance Ministry.

 The SRT will lease its prime land plot in the Makkasan area

of Bangkok in exchange for clearing its accumulated debt

 of 62 billion baht.

Mr Wisudhi brushed aside criticism that the government

 would allow the private sector to lease state land for up

 to 99 years and potentially open up agricultural land to

 foreign investors.

At present, two sets of regulations govern leased land in Thailand.

 The Land Lease for Commercial and Industrial Purposes

 Act sets a maximum lease period for industrial and

commercial use of 50 years with a 50-year renewal option.

The Civil and Commercial Code allows people to lease land

for general purposes for up to 30 years.

 Chakkrit Parapuntakul, director-general of the Treasury

Department,said his department and the SRT would survey

the Makkasan plot to clear any buildings in the area before

the handover.

The SRT will conclude the survey and forward the results

 to the Treasury Department by the second week of February,

 he said.

The debt-to-land swap will seek approval from the State

 Enterprises Policy Commission or superboard chaired by

 Prime Minister Prayut Chan-o-cha and the cabinet before

the lease contract signing.

 The Finance Ministry will lease 497 rai of land in Makkasan

 for 99 years from the loss-ridden SRT in exchange for

clearing 61.8 billion baht of the latter's debt.

The SRT is among seven financially troubled state enterprises

 required by the superboard to undertake business rehabilitation.

 Some 150 rai is to be developed as a public park, with 30

rai for a museum and 317 rai for commercial purposes.

 

Business,BusinessNews,Bangkok Post, 30 January 2016.

 

As Mr Wisudhi said the amendment of the maximum

lease term to 99 years from 50 was aimed at facilitating

 the debt-to-land swap deal by the State Railway of

Thailand (SRT) and the Finance Ministry.

 

So this is special case that should be done between this

two parties.

 

It should not set as new law that will be the obligation to

other parties also.

 

Sincerely Yours.