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New law aims to speed infrastructure development

By on Jun 01, 2012 in Property News

The Finance Ministry believes the newly drafted Joint Public-Private Venture Law will speed up development of the country’s infrastructure to the tune of more than Bt3.3 trillion within the next 10 years.

This is part of the government’s effort to drive the economy and property sector to sustainable growth, the ministry’s inspector-general Kulit Sombatsiri told a seminar yesterday called “The Country’s Economic and Property Outlook in 2012″, held by Condo Guide magazine.

He said the new act revised the existing joint-venture law to speed up the approval process for projects worth more than Bt1 billion and opened opportunities to expand investment by private sector. The act is currently before Parliament.

“We believe that this act will pass and come into effect this year,” he said.

When it does, it will change the property market and open business opportunities to invest in new infrastructure, especially mass transit, Kulit said.

Meanwhile, a proposed amendment to the Bangkok City Plan mandating that condominiums with usable space of 2,000-10,000 square metres had to be built on roads wider that 12 metres, up from 10 metres in the existing plan, has been dropped after heavy opposition from developers. This will help property firms maintain business growth this year, said Dr Nopnant Tapananont, who heads the revision of the city plan.

Thongchai Busaraphan, managing director of Noble Development, agreed that the reversion to the 10-metre standard would encourage property firms to expand their investment in the long term.

He also believes that the property market will grow by at least 5 per cent this year after seeing strong demand.

Land & Houses managing director Anant Asavabhokhin also believes that the property market will grow along with the infrastructure expansion.

Source : The Nation 1 June 2012

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