Baby Steps Toward the Resolution of the Map Ta Phut Impasse

UNCLAS SECTION 01 OF 02 BANGKOK 000234 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON EINV ELAB SENV TH SUBJECT: Baby Steps Toward the Resolution of the Map Ta Phut Impasse REF: A) 09 BANGKOK 701 B) 09 BANGKOK 1909 C) 09 BANGKOK 2597 D) 09 BANGKOK 2678 E) 09 BANGKOK 2742 F) 09 BANGKOK 3068 BANGKOK 00000234 001.2 OF 002 Sensitive But Unclassified. For Official Use Only. ¶1. (SBU) Summary: While the Royal Thai Government has made some progress towards the resolution of the Map Ta Phut impasse, the end is not yet in sight. Some of the necessary guidelines that will enable companies to comply with Article 67 of the Thai Constitution have been established; however, until all requirements are clearly spelled out, the companies with 64 suspended projects cannot even begin the formal application process. Once established, the procedures will require technical environmental and health assessments, public hearings, and an assessment from an independent body, a process which could take up to 6 or 8 months. Hopes for a faster resolution via an alternate path were dashed on January 22 when the Central Administrative Court refused to review the petitions of 30 projects that were seeking permission to proceed. The court ruled that the projects had yet to comply with Article 67, so must remain suspended in accordance with the September and December court orders. End Summary. Limited Progress Towards Resolution -------------- ¶2. (U) The Royal Thai Government (RTG) has established some of the necessary guidelines that will enable companies to comply with constitutional mandates for environmental and health impact assessments. Article 67 of the 2007 Constitution requires that prior to the operation of any project or activity that "may seriously affect the community with respect to the quality of the environment, natural resources and health," the following must be completed: an environmental impact assessment (EIA); a health impact assessment (HIA); a public hearing for affected citizens; and an assessment from an independent body consisting of representatives from environmental and health organizations as well as academia. ¶3. (U) On December 29, the Cabinet approved a Ministry of Natural Resources and Environment notification containing HIA, EIA, and public hearing guidelines. The guidelines were based on recommendations of the four-party panel (see ref F),which is chaired by former Prime Minister Anand Panyarachun and includes environmentalists, community activists, representatives from the business sector, and government officials. This notification established the guidelines for three of the four requirements stated in Article 67. ¶4. (U) On January 12, the Cabinet approved a plan to address the development of the independent body that would consist of representatives from environmental and health organizations and academia, the fourth requirement of Article 67. According to a member of the four-party panel, the plan is to develop a 13 member temporary independent body to bridge the gap until a permanent body can be approved by an Act of Parliament, which is expected to take over a year. The 13 members of the temporary body will be selected by a 19 member coordinating committee that will work together with selected NGOs and academics to establish the independent body. The independent body will draft its own administrative rules and assessment guidelines. While the independent body will have no decision making power, it will evaluate the EIAs and HIAs before the licensing authority can issue permits. Thus the role of the independent body will be critical to the operation of companies. On January 19, the Cabinet approved membership of the new coordinating committee. For the most part, the committee has the same membership as the four-party panel; former Prime Minister Anand will again serve as the Chairman. ¶5. (U) Still to be done by the four-party panel is to define exactly which projects will be considered potentially "harmful" and must comply with Section 67. Work has reportedly been done, but a list has not yet been issued. But End Still Not In Sight -------------- ¶6. (U) While the RTG has developed some of the necessary regulations, establishment of the regulations and independent body will merely permit the companies to begin the process. According to Prime Minister Abhisit in his January 14 Foreign Correspondents' Club of Thailand speech, completion of the HIA, EIA, public hearings, and assessment from the independent panel could take up to 6 or 8 months. After that, there will likely be additional time waiting for the licensing authority to review the evaluation of the independent body and the public hearings before receiving approval to proceed. A New Legal Challenge BANGKOK 00000234 002.2 OF 002 -------------- ¶7. (SBU) On January 20, the Stop Global Warming Association filed a petition with the Supreme Administrative Court seeking revocation of the January 12 PM's Office Ministerial Regulation and the appointment of the coordinating committee. The petition argued that hearings should have been held to allow for public comment prior to the action being taken. When asked about this petition, Dr. Somrat Yindepit, a member of the four-party panel, dismissed any concerns. In his opinion, this was simply a stalling tactic on the part of the NGO. No Way Around for 64 Projects, Including Dow -------------- ¶8. (SBU) Hopes were dashed on January 22 when the Central Administrative Court refused to review the petitions of 30 projects that were seeking to be released from suspension. The court stated that the projects had not yet complied with Article 67 and thus are still suspended according the September Central Administrative Court order and the December Supreme Administrative Court order. These 30 projects (including 4 from Dow) are part of the 64 projects that remain suspended in the Map Ta Phut industrial area. (Note: The December Supreme Administrative Court ruling (Ref F) upheld the suspension order of 65 of the 76 projects originally suspended by the September injunction (Ref C). On December 23, the number of suspended projects dropped to 64 when the Central Administrative Court ruled that Siam Yamato Steel, a joint venture of Siam Cement Group, could resume operations because the firm received an operating license two days before the promulgation of the 2007 constitution and thus was not subject to the terms of the injunction. End Note.) ¶9. (SBU) Dow representatives are extremely upset with this latest development, as the government recommended that the companies involved appeal to the courts and Dow assumed that by doing so some arrangement had been worked out between the government and the court that would allow at least some projects to move forward. Now it is clear that the government had made no such effort. Dow will now recommend that the RTG, the original party to the initial suit, resubmit the petitions on behalf of the companies. According to Dow representatives, the lack of clarity and required procedures will have serious implications for their project if they are unable to resume operations within 6 months. Dow CEO Andrew Liveris is planning to meet with the Prime Minister on the margins of the World Economic Forum in Davos to express the company's concerns and to seek guidance on the way forward.