In Thailand’s industrial heartland, the workmen who should be constructing dozens of metal and petrochemical products are nowhere to be seen, their tools lying unused.
Legal action brought by environmental activists has brought dozens of projects to a halt until pollution fears have been addressed, seizing up US$9 billion of investment.
The suspended projects at Map Ta Phut are part of a huge industrial estate on Thailand’s eastern seaboard, a vast web of petrochemical, metal and energy plants the size of a city that dwarfs the rural villages surrounding it.
In those villages, the allegations against the plants are grave — record cancer rates and respiratory disease in the area are blamed on the toxic fumes pumped out from the estate.
“We are not telling the factories to go away, but we want them to control the fumes,” said fruit farmer Noi Jaitang, 71, who suffers from breathing problems that he blames on fumes wafting across the fields to his house.
He said his wife has had cancer of the face twice and that his children are sick from acid rain in the area.
“When I sleep, the fumes go in my eyes, and sometimes I have to stand and stretch just to breathe,” he said.
However, Noi said many others with similar problems were too frightened to complain, because unlike him, they are employed by the factories.
A Thai court in September halted work at 76 projects in Map Ta Phut. Courts have subsequently allowed 20 of them to finish construction.
The delays are causing anxiety among investors, however, already rattled by years of political unrest, including a coup, the brief closure of Bangkok’s airports by protesters in 2008 and fresh rallies set for this weekend.
The president of Japan’s External Trade Organization for South and Southeast Asia has said the project suspensions are a bigger turn off than the protests, while Thailand’s finance minister is currently in Tokyo to reassure investors.
Separately, the Bank of Thailand has warned that the row could cut the country’s economic growth by 0.5 percentage points this year and that it presents “major risk factors to the stability of the corporate sector.”
“Investors are concerned, we are all concerned. This is the problem of complying with the new rules,” said Chainoi Puankosoom, president and chief executive of PTTAR, part of the Thai industrial conglomerate PTT PLC.
PTT accounts for nearly a third of the projects on hold in Map Ta Phut and has said its net profit could fall 5 percent this year and more next year if it cannot resume work.
“When the projects are delayed, we have to renegotiate with our construction workers, renegotiate with our lenders, which all costs us money and delays our operations,” Chainoi said.
The court that initially halted the projects based its decision on tougher rules brought in under a 2007 military-backed Constitution, following the coup that toppled former Thai prime minister Thaksin Shinawatra.
The rules force all firms in Thailand to carry out health assessments and hold public consultations before beginning new works to prove they will cause no environmental damage.
The companies complain, however, that the new regulations are unclear and costly.
This angers lawyer Srisuwan Janya, a former student activist and campaigner for better pollution controls who helped win the initial injunction that stopped work at Map Ta Phut.
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