Some 6,500 rai of areas around U-tapao airport will be developed into a special investment promotion zone on aviation, a key component to support the government's much-touted Eastern Economic Corridor (EEC) scheme.
Kanit Sangsubhan, secretary-general of the EEC Policy Committee, said the plan to upgrade the surrounding areas into an aviation zone was approved at the committee's first meeting, chaired by Prime Minister Prayut Chan-o-cha.
The 6,500-rai aviation zone will cover aircraft-related business, air cargo and warehouses, which will be 100% open for foreign investment.
The committee also approved yesterday an 8-billion-baht investment budget for a second runway at U-tapao airport. The outlay will come from the central budget of fiscal 2018.
The second runway is expected to be operational in three years.
The government will also allow public-private partnership (PPP) for the airport's second terminal.
The terminal is scheduled to be finished in five years, increasing capacity at the airport to 15 million passengers, up from 3 million.
U-tapao development is part of Thailand's ambitious plan to be a regional aviation hub. After raising the airport's capacity to 15 million passengers in the first phase, the second phase calls for servicing 30 million passengers in 10 years. The final stage is to handle 60 million passengers in 20 years.
The development is projected to require combined investment of 200 billion baht.
U-tapao airport development is the first infrastructure project the government seriously wants to open for bidding this year, he said.
Other fast-track developments are the Bangkok-Rayong high-speed rail project worth 158 billion baht, which is expected to be opened for bidding this year under the PPP scheme, the 88-billion-baht third phase of the Laem Chabang deep-sea port, and the 64.3-billion-baht double-track rail link between the three deep-sea ports of Bangkok, Laem Chabang and Map Ta Phut.
Mr Kanit said the premier is set to invoke Section 44 to expedite the PPP scheme, completing the investment process in eight to 10 months.
The National Economic and Social Development Board has been assigned to map out the new government centre and residential areas in Chachoengsao province. The project is expected to take 15 years and cost 200 billion baht.
In a related development, Gen Prayut yesterday witnessed the signing of three memoranda of understanding (MoU) on aeronautical industry development between the Royal Thai Navy, Thai Airways International Plc and the Civil Aviation Training Centre. The first MoU calls for the first phase of development of an aircraft maintenance centre, while the second details the first phase of air freight and logistics development. The third MoU underlines cooperation on personal development in the field of aerospace.
In a separate MoU signing, PTT Plc, 50 educational institutes and some private companies agreed yesterday to establish an Eastern Economic Corridor on Innovation worth 1 billion baht.
Members of the government team hold a meeting to promote the Eastern Economic Corridor scheme at U-tapao airport in Rayong on Wednesday. (Video by Apichart Jinakul)