The Treasury Department has set lenient conditions for the coming bidding to develop state lands in Mukdahan and Nong Khai provinces into special economic zones (SEZs) to draw bidders.
The relaxed conditions include land development experience in wider fields, an extension of development proposal submissions, change in construction cost presentation models and permission to allow winners to sublease the developed land, said Chakkrit Parapantakul, director-general of the department.
The previous conditions limited bid winners' experience to only industrial estates, but the new rules allow property developers with experience in building logistics or manufacturing plants, he said.
The development proposal submission period has been extended to 90 days from 60 days, and the bidding price based on the bill of quantity approach will be replaced by construction cost per square metre to give the bidders greater flexibility, said Mr Chakkrit.
Most importantly, the new criteria allows winners to sublease the developed land and hold rights in buildings constructed in the developed areas to pave the way for them to seek loans from financial institutions, he said.
The lease contract for winning bidders will last for 50 years. The department's envelope purchase period for interested bidders will run from Feb 24 to March 21. Bidders need to submit development proposal plans within 90 days after the purchase period closes.
Earlier the department put 2,693 rai under the hammer but received a lukewarm response given the unattractive requirements. The land comprised 718 rai in Nong Khai, 1,080 rai in Mukdahan and 895 rai in Trat. The question of whether state land could be subleased was a concern for property developers, discouraging them from participating in the auctions.
Some 19 private companies last year bought 31 bid envelopes to participate in auctions to develop state land in SEZs, including Property Perfect Plc for Trat province, Advance Finance Co for Mukdahan and Nong Khai and CP Land for three provinces. Property Perfect was the only company to bid and won the auction.
SEZ development is a major government policy aimed at boosting investment and trade along border areas. The government wants to set up industrial estates in SEZs in 10 provinces for the purposes of agriculture, industry, logistics and tourism. The 10 provinces are Tak, Sa Kaeo, Trat, Mukdahan, Songkhla, Chiang Rai, Kanchanaburi, Narathiwat, Nakhon Phanom and Nong Khai.