In Thailand, a tangle of red tape has complicated the types of construction projects that trigger flows of project cargo.

For example, for two years the country’s constitution has required new projects to undergo environmental impact assessments. However, said Rainer Roessler, BDP Project Logistics’ Thailand-based general manager, no rules were laid out about how to go about getting these assessments done, so the permitting process bogged down.

This meant many projects stalled, including expansion and construction projects planned for a large petrochemical complex near the village of Map Ta Phut. “It’s huge,” Roessler said. “Dow Chemical, DuPont — all of the major players of the world are there.”

Although about a dozen of the Map Ta Phut projects now have permits to go ahead, some 65 Thailand projects there and elsewhere were on hold in late 2009 because of the confusing new EIA requirements.

Export-driven Thailand also suffered more during the economic crisis than more self-sufficient neighbors such as Indonesia and Vietnam. Although expected to bounce back in 2010, Thailand’s economy is estimated to have contracted almost three percent during the downturn, said Simona Mocuta, a senior economist with IHS Global Insight.

Thailand’s political crisis exacerbated its problems, Mocuta said, “and domestic demand was very weak, so the Thais had nothing to offset the decline in exports.” Echoing Roessler, she said legal issues related to the economic zones Thailand is establishing are also a problem. “Some projects supposed to be online in 2010 might be delayed,” she said.

Still, the Thai government is encouraging green power development with many wind and solar power projects in the works, Roessler said. Components are being imported from India and China and some trial projects are underway, with larger projects planned for late 2010.

According to Power Engineering, Thailand plans to increase its renewable energy capacity, including wind and solar, from 1750 mw to 5500 mw by 2020. Thailand is also reportedly conducting site preparation for two 1,000 mw nuclear power stations, but how these would be regulated and whether they will be supported by the public are unanswered questions.

By: Janet Nodar

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