Photo Credit: Somchai Poomlard
U-Tapao International Aviation Co Ltd (UTA) has extended its project timeline for the U-Tapao Airport concession agreement until next month to finalize key investment incentives and other details, according to 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 over five years ago, the company still lacks full access to the project site. This delay is primarily due to unresolved infrastructure issues, notably the slow progress of the high-speed rail link connecting Suvarnabhumi, Don Mueang, and U-Tapao airports.
Mr. Keeree reaffirmed UTA’s commitment to working closely with the Eastern Economic Corridor (EEC) Office, its contractual partner, emphasizing U-Tapao’s strategic importance for regional growth. However, he acknowledged that progress has been hindered by delays in related infrastructure projects. The EEC has recently requested a further extension, changing the deadline from June to December, to address these issues.
To accelerate development, UTA has signed a new memorandum of understanding (MoU) with the EEC, which grants additional time to finalize investment incentives, especially tax benefits within the planned free trade zone. Mr. Keeree stressed that securing attractive incentives has become vital amid a sluggish global economy and cautious investor outlook. He noted that Thailand’s incentives might not be as competitive as those offered by neighboring countries but urged policymakers to establish clear and favorable terms to boost investor confidence.
Once a clear framework for tax rates, free zones, and other benefits is established, UTA plans to launch an investor roadshow. Mr. Keeree stated that, despite current challenges, the company is determined to move forward and expects to have a definitive roadmap by December. Following this, infrastructure development will commence, and the aviation city project will open to both domestic and international investors.
Regarding Transport Minister Phiphat Ratchakitprakarn’s proposal to extend the rail line to Trat province, Mr. Keeree, whose BTS Group Holdings participated in the high-speed rail project bidding in 2018 (but was unsuccessful), simply responded: “They can do what they wish.”