PROPERTY

Central, SRT to negotiate on land lease

AMORNRAT MAHITTHIROOK

Negotiations between Central Pattana Plc and the State Railway of Thailand (SRT) on the renewal of the Lat Phrao land lease contract should be settled in one month, once the attorney-general gives formal approval for the talks, Transport Minister Theera Haocharoen said. The lease is due to expire in December next year, and the Central group wants to negotiate a renewal with the SRT.

Under the terms of the 1978 contract, Central is given the first right to negotiate the renewal of the lease.

However, the move has been questioned by the National Legislative Assembly's transport committee, led by Adm Banawit Kengrian, who claimed the company had already used its negotiating right when it requested a lease extension seven years ago.

The transport committee called on the SRT, the land owner, to open a new round of bidding with other investors.

But in August this year the government's legal arm, the Council of State, suggested the SRT set up a committee to work on negotiating the terms and conditions of a new contract without the need to call an open bid.

The SRT decided to prepare for negotiations by hiring two consultancy companies to study various issues, including new lease fees and annual increases as well as the lease extension, which could be for between 10 and 30 years. Approval from the attorney-general is sought pending the results of the studies.

SRT asset management director Ittipol Papawasit said the attorney-general had already considered the details of the proposed negotiations and was preparing to send an official answer to the agency.

Central asked the SRT to consider its request for the renewal of the contract in 2001. However, the SRT board, then chaired by Somphop Amatayakul, said it was not the right time to start negotiations. This, according to Central executives, was not a rejection.

The company has developed the 44.22 rai of land, where Lat Phrao, Phahon Yothin and Vibhavadi Rangsit road meet, for nearly 30 years. A shopping complex, hotel and convention centre are there.