An Additional Fund to Restore Flood-Hit Facilities and a Move to Restore Investor Confidence

(24/11/2011)

The Flood Recovery and Restoration Committee on Infrastructure, chaired by Transport Minister Air Chief Marshal Sukumpol Suwanatat, has requested a budget of 12.98 billion baht for various agencies to restore flood-hit facilities. The request will be submitted to the Flood Recovery and Restoration Committee, chaired by Deputy Prime Minister and Interior Minister, Yongyoot Wichaidit, before being forwarded to the Cabinet for approval. Out of the amount, 5.2 billion baht will be provided to the Ministry of Natural Resources and Environment for water source rehabilitation, 2.66 billion baht for the State Railway of Thailand to improve tracks, railway stations, and signal systems, 1.59 billion baht for the Ministry of Culture to renovate historical sites, 1.5 billion baht for the Marine Department to dredge and maintain seven rivers, 1.46 billion baht for the Ministry of Education to repair educational institutions, and the rest for the Ministry of Public Health, the Department of Land Transport, and Aeronautical Radio of Thailand Company to carry out repair work in their respective infrastructural facilities. The Cabinet earlier approved a fund of 17.9 billion baht for the rehabilitation of damaged infrastructure. When combined with this requested amount, the total budget for flood recovery and restoration on infrastructure will come to 30.9 billion baht following the flood crisis. In a move to help manufacturers whose businesses have been damaged by the flooding, the Office of the Board of Investment (BOI) will propose a waiver on corporate income tax for a period of eight years. The BOI Board earlier approved measures to assist companies affected by the floods. The measures include the reduction of import tariffs on raw materials for export manufacturing. BOI Secretary-General, Atchaka Sibunruang, said that the proposed waiver on corporate income tax would help restore investor confidence. During the peak of the current flooding, BOI coordinated with the military to send a number of soldiers to help move machinery and raw materials out of plants or flood-affected and risk areas to prevent possible damage to factories. Mrs. Atchaka said that a total of 2,919 BOI-promoted projects, worth 620.8 billion baht, have suffered from this flood. BOI will organize a series of road shows next year to restore investor confidence overseas. It will invite Dr. Virabongsa Ramangkura, Chairman of the Strategic Committee for Reconstruction and Future Development, to speak about the Government’s flood prevention strategies at the BOI Fair, to be held between January 5 and 20, 2012 at the IMPACT Exhibition Center, Muang Thong Thani, in Nonthaburi province.