One model called for the development to be left to the private sector with the site owned by Phuket City.

This would mean the city could earn revenue by granting concessions and leases to private investors.

The other model was a joint venture among the central government, Phuket City and the private sector with the Treasury Department owning the site.

The meeting, chaired by caretaker Deputy Prime Minister Suwat Liptapanlop, who oversees Andaman affairs, spent hours discussing the strong and weak points of the two models but failed to reach a decision.

The committee said the first model was good for local government as it provided a steady source of income but the local government might not have enough funds and experience to manage such a large project and the model might also favour only large investors and exclude small-scale developers.

The second model does not follow the principle of decentralisation since Phuket City would only be a developer and would not have the authority to manage the whole project, the committee said.

Suwat said the panel did not have enough information to make a decision, so he gave the NESDB three weeks to provide more details.

The additional information required includes the concession period and relative benefits to the local community, as well as recommending the better model to the project committee.

If the committee agrees with the government think-tank's recommendation, the investment plan will be submitted for Cabinet approval.

The Phuket Bay project was initiated 17 years ago and dusted off several times, but has not made much progress.

Last September a mobile Cabinet meeting approved it in principle.

The project, which would cover what used to be a mining area, would include an international convention and exhibition centre, a deep-sea port, hotels and apartment blocks, hospitals, entertainment venues as well as a sports complex.

The concept was aimed at the MICE (meeting, incentive, convention and exhibition), marina, health tourism and spa markets with a view to making the tourism industry in the region sustainable and boosting Phuket as a world-class destination.

Suwit insisted that there could be no objection to the interim government acting on a project so beneficial the country.

Bhumisak Hongyok of the project committee said he endorsed the project but was afraid it might overload the capacity of the province's infrastructure and facilities.

He wanted the government to consider the island's utilities, including water, electricity and waste management before letting the project go ahead.

Salinee Prab

The Nation

Phuket