Central says fee to SRT is 'acceptable'

A Central Pattana source yesterday said while negotiations were not yet finished, the proposed fee was acceptable.

Transport Minister Santi Prompat said he already told the SRT the planned discussions with Central must focus on the state enterprise's highest interest. The 30-year lease ends this December.

Earlier the SRT's consultant, after appraising the site, suggested a value of Bt14 billion for a lease extension of 30 years. But Santi said that was too low and the appropriate figure should be Bt30 billion.

A state committee was set up in accordance with Article 13 of the Public-Private Joint Venture Act to examine the proposal. The Central Group source said the company had yet to enter into formal talks.

Arak Ratboriharn, the SRT's chief financial officer, said the SRT is working out the details in line with the minister's intention to renew the ground lease for 30 years, instead of the 20 years originally planned by the SRT.

According to the lease's terms and conditions and the opinion of the Council of State, the SRT has to give Central first right to continue using the land. If the parties fail to conclude a deal, then the SRT can open bidding for the site.