Energy Department Proposes Oil Pipeline

27 November 2009

Thailand’s Energy Business Department has submitted a proposal requesting a Bt 15-billion government investment in an oil pipeline linking central Thailand to the north and northeast, media sources reported.

The proposal is the result of a study conducted by the Petroleum Institute of Thailand. Supporters claim the project could be completed in three years and would increase transmission efficiency, and reduce accidents caused by the current truck transportation system.

There are two proposals corresponding to two geographical routes the pipeline could possibly make:  a “y-shaped” line from Saraburi to Lop Buri to Phitsanulok and Lampang; or a “v-shaped” line from Saraburi to Phitsanulok and Lampang, and another direct link from Kaeng Khoi to Nakhon Ratchasima and Khon Kaen.  The latter option requires a higher investment but supporters claim the return on investment will be higher.

The government is being asked to fund the pipeline expansion as the returns from the investment were not considered attractive enough for private oil companies, a representative from the Institute said.

Foreign Ownership Draft Law up for Review in Cambodia

26 November 2009

A draft law on foreign property ownership is currently being reviewed by Cambodia’s Council of Ministers, recent media reports have suggested.  The final version of the draft will be passed to the National Assembly for approval in the next few months.

Currently, under Cambodian property law, foreigners can only hold 99-year leaseholds on any property.  Proposed changes contained in the draft law include allowing foreigners to own apartments and condominiums on the upper floors of buildings, restricting ownership of ground level residences to Cambodians.  The land that condominiums or apartments stand on is restricted to Cambodia ownership as well.

Some observers have suggested, however, that the draft law has unnecessary complications, such as the requirement that no more than 49% of a condominium’s units may be owned by foreigners.  Developers question whether this requirement would require them to sell to two diverse markets.

Further, the draft stipulates that foreigners cannot be co-owners of land, nor buy property that is within 30 kilometers of Cambodia’s borders, except in the case of special economic zones.

Overall, it is thought that the passing of the law will encourage investment in the country, by increasing transparency and improving confidence in Cambodia’s market. 

“One Stop Centre” for Foreign Investors

20 November 2009

Foreign investors will now be able to process all licenses and investment promotion application thanks to the establishment of the One Start One Stop Investment Centre (OSOS), according to Board of Investment (BoI) representatives.

Announced by news sources on Friday 20 November, the Centre was slated to open on the following Monday, reducing duplicate procedures and other “red tape” applications for foreigners involved in establishing business in Thailand and applying for BoI tax incentives.

The One Stop Centre’s objective is to consolidate services from several different Thailand government offices in single place. Government officers will assist with labor work permits, BOI applications and Thailand company registration, along with other services. Twenty-one government agencies were reported to be placing representatives to serve at the OSOS.