Bookings at Sala Daeng Residences continue to record brisk sales as the project draws interest among local as well as overseas investors.
On a recent visit to meet with potential buyers in Singapore, Pace Development executive director Chotipol Techakraisri says demand for centrally-located properties in Bangkok remains robust.
"What surprised me a bit was the buyers were familiar with our location at Soi Sala Daeng," he says at Pace's headquarters at CRC Tower in All Seasons Place.
"Many overseas buyers are looking for a second home aboard, and Bangkok still ranks high on the list of destinations," he says.
"On pricing, our project which starts at about Bt160,000 a square metre, still appears reasonable when compared to what Singapore builders are charging."
"But the key lies in our ability to deliver high-end city homes that they can enjoy," he says. "They want something of high quality at affordable prices."
To be sure, Sala Daeng Reisidences, which was launched less than a year back, is poised to set new standards for luxury condominiums in the heart of the financial hub at Silom.
The project underlines the company's ability to provide compact, yet spacious and high-value homes in prime locations.
"Among Thai buyers, we are receiving many sophisticated professionals who understand the great advantage of living in the financial centre," Chotipol adds.
One of the worst aspects of living in Bangkok is the daily traffic gridlock and high pollution levels from buses and trucks.
Living at Sala Daeng allows buyers to commute with ease by walking or using mass transit lines at the BTS Skytain and MRT subway stations nearby.
Pace was formed to plan, launch, manage and market premium properties. Its projects include MahaNakhon and Ficus Lane.
Pace's main shareholders are the Techakraisri family, co-founders of LPN.
The management team with more than 25 years in real estate has a strong track record for success, Pace chief executive officer is Sorapoj Techakraisri says "the family is the major shareholder of all Pace's venture companies.
"The structure allow the company to be flexible in forging ties with right partners."
Sala Daeng Residences is a 28-storey tower with 5 basement parking levels.
It has just 132 freehold apartments offering one, two and three bedroom residences.
The smallest unit measures 60 square metres while its largest penthouse offers 393 square metres of built-up area.
Soi Sala Daeng is regarded as one of Bangkok's more prestigious addresses.
Residents can also enjoy the many facilities on the 16th floor that include an infinity-edge pool, gym, steam room, yoga room and landscaped gardens.
Its 25th floor offers even more common facilities as well as a panoramic view of the city.
Construction began last August and the project should be ready by 2011.
Monday, August 31, 2009
Friday, August 28, 2009
PLE clients slow to pay but overall outlook picking up
Power Line Engineering Plc (PLE), a SET-listed mechanical and electrical contractor, expects to weather current liquidity problems as it sees brighter prospects from government megaprojects.
The company also hopes to obtain more private-sector contracts as the economy improves, chairman Swake Srisuchart said yesterday.
Liquidity is tight because some struggling clients have delayed payments, but he said PLE still had good credit.PLE forecasts a decline in consolidated revenue of about 10% this year, to 7.9 billion baht from 9.11 billion last year.
"Every construction company is facing the same scenario where projects are either delayed or downsized. One problem is inability to receive payment from troubled customers," he said.
"Our gross profit should also drop this year as a result of price-cutting competition and the higher prices of construction materials we have in stock."
Consolidated revenue fell 7% in the second quarter to 3.86 billion as project owners delayed work, and on reduced contract values for the Baan Ua-Arthorn low-cost housing programme by the National Housing Authority (NHA).
The company's gross profit margin narrowed from 12.9% last year to 6.5% in the second quarter this year on higher raw material costs. It recorded a net loss of 654 million baht, compared to a profit of 138 million in the same period last year, as a result of provisions of 566 million baht for doubtful debts.
The company currently has total provisions of 1.04 billion baht and hopes to see at least 500 million baht worth of writebacks by the end of this year. "Some [debtors] have potential to pay within this year," Mr Swake said.
One of the debtors is Bo Bae Plaza, the wholesale clothing centre, with the 265-million-baht contract value set as a provision. PLE hopes to write back the sum as revenue soon as it has settled a dispute with vendors.
Also, PLE is negotiating with local and foreign institutional investors seeking to acquire stakes in the company. "The venture would give us a few million baht, but what we hope for is the institutions' connections to support us in wining future projects," said Mr Swake.
PLE currently has a backlog of 7.6 billion baht from 30 projects. They include the NHA and Tesco Lotus.
It is waiting for contracts to be signed on four projects worth 4.6 billion baht, including the Purple Line rail system and the Chiang Mai International Convention Centre.
PLE shares closed yesterday on the SET at 1.52 baht, unchanged, in trade worth 9.24 million baht.
The company also hopes to obtain more private-sector contracts as the economy improves, chairman Swake Srisuchart said yesterday.
Liquidity is tight because some struggling clients have delayed payments, but he said PLE still had good credit.PLE forecasts a decline in consolidated revenue of about 10% this year, to 7.9 billion baht from 9.11 billion last year.
"Every construction company is facing the same scenario where projects are either delayed or downsized. One problem is inability to receive payment from troubled customers," he said.
"Our gross profit should also drop this year as a result of price-cutting competition and the higher prices of construction materials we have in stock."
Consolidated revenue fell 7% in the second quarter to 3.86 billion as project owners delayed work, and on reduced contract values for the Baan Ua-Arthorn low-cost housing programme by the National Housing Authority (NHA).
The company's gross profit margin narrowed from 12.9% last year to 6.5% in the second quarter this year on higher raw material costs. It recorded a net loss of 654 million baht, compared to a profit of 138 million in the same period last year, as a result of provisions of 566 million baht for doubtful debts.
The company currently has total provisions of 1.04 billion baht and hopes to see at least 500 million baht worth of writebacks by the end of this year. "Some [debtors] have potential to pay within this year," Mr Swake said.
One of the debtors is Bo Bae Plaza, the wholesale clothing centre, with the 265-million-baht contract value set as a provision. PLE hopes to write back the sum as revenue soon as it has settled a dispute with vendors.
Also, PLE is negotiating with local and foreign institutional investors seeking to acquire stakes in the company. "The venture would give us a few million baht, but what we hope for is the institutions' connections to support us in wining future projects," said Mr Swake.
PLE currently has a backlog of 7.6 billion baht from 30 projects. They include the NHA and Tesco Lotus.
It is waiting for contracts to be signed on four projects worth 4.6 billion baht, including the Purple Line rail system and the Chiang Mai International Convention Centre.
PLE shares closed yesterday on the SET at 1.52 baht, unchanged, in trade worth 9.24 million baht.
Dept says Supreme Court building worth preserving
The Fine Arts Department has stepped in to the debate over the Supreme Court building, saying it is worth preserving and should not be demolished.
Grienggrai Sampatchalit, head of the department, raised concern about plans to demolish the structure to make way for a new Supreme Court building, which will rise 32m on the same site.
The building, though not registered as an historical structure, was still worth preserving for its historical and architectural values, he said.
The department's move is in response to a call by conservationists who have demanded the court review the project.
They believe the new building, if it goes ahead, will be an eyesore in the inner quarters of Rattanakosin old town.
Led by the Society for the Conservation of National Treasures and Environment,they have threatened to file a case with the Administrative Court to stall it.
Mr Grienggrai said a team of Fine Arts officials is preparing a building assessment report that will reach him soon.
"The court is obliged to submit the new building's blueprint to the department for consideration," he said, adding the department has the power to reject the construction plan.
Earlier this year, the Association of Siamese Architects listed the court building as an "ASA conservation structure",an award that is given to old buildings to encourage conservation.
The court, built by the Pibulsonggram government to commemorate the return of Thailand's judicial sovereignty in 1939,is cast in so-called modern architecture,an architectural style which was popular during the time of the now-defunct People's Party, which rose to power after Thailand switched from an absolute to a constitutional monarchy.
Mr Grienggrai said if the court really wanted to have the new building, it should downsize the structure to ensure that it is in harmony with the surroundings, in particular the Grand Palace and the Temple of the Emerald Buddha.
"It must follow the old architectural style and size. That is more agreeable,"he said.
The court argues the present structure is too old and cramped. However, a study by Chulalongkorn University suggests the building be renovated.
Restoring the building to its original grandeur would cost 1 billion baht, while the new building would cost 3.7 billion baht, it said.
Grienggrai Sampatchalit, head of the department, raised concern about plans to demolish the structure to make way for a new Supreme Court building, which will rise 32m on the same site.
The building, though not registered as an historical structure, was still worth preserving for its historical and architectural values, he said.
The department's move is in response to a call by conservationists who have demanded the court review the project.
They believe the new building, if it goes ahead, will be an eyesore in the inner quarters of Rattanakosin old town.
Led by the Society for the Conservation of National Treasures and Environment,they have threatened to file a case with the Administrative Court to stall it.
Mr Grienggrai said a team of Fine Arts officials is preparing a building assessment report that will reach him soon.
"The court is obliged to submit the new building's blueprint to the department for consideration," he said, adding the department has the power to reject the construction plan.
Earlier this year, the Association of Siamese Architects listed the court building as an "ASA conservation structure",an award that is given to old buildings to encourage conservation.
The court, built by the Pibulsonggram government to commemorate the return of Thailand's judicial sovereignty in 1939,is cast in so-called modern architecture,an architectural style which was popular during the time of the now-defunct People's Party, which rose to power after Thailand switched from an absolute to a constitutional monarchy.
Mr Grienggrai said if the court really wanted to have the new building, it should downsize the structure to ensure that it is in harmony with the surroundings, in particular the Grand Palace and the Temple of the Emerald Buddha.
"It must follow the old architectural style and size. That is more agreeable,"he said.
The court argues the present structure is too old and cramped. However, a study by Chulalongkorn University suggests the building be renovated.
Restoring the building to its original grandeur would cost 1 billion baht, while the new building would cost 3.7 billion baht, it said.
Thursday, August 27, 2009
STILL TOUGH TIMES FOR BIG FIRMS
Construction firms listed on the Stock Exchange of Thailand continue to report difficult business conditions extending into the second half despite some of them reporting year-on-year increases in their first-half net profit.
Italian-Thai Development achieved first-half revenue of Bt21.16 billion, down 3.42 per cent year on year. However, the company returned to the black, from a net loss of Bt439 million in last year's first half to a net profit of Bt46.53 million in this year's first half.
The company said the profit performance came from reasons other than its business operations. It gained a Bt503 million from buying back convertible bonds, Bt142 million on exchange rates, because of the baht's appreciation, and "other income" of Bt445 million, mostly from insurance claims and claims on some project owners. Finally, it received interest income of Bt126 million.
Ch Karnchang reported revenue growth of 46 per cent, from Bt6.69 billion in last year's first half to Bt9.77 billion in this year's first half. However, its net profit fell 10.98 per cent, from Bt346 million to Bt308 million.
By way of explanation, CEO Plew Trivisvavet said that in last year's second quarter, Ch Karnchang gained Bt278.6 million from the sale of investment in an associated company and Bt114 million from exchange rates. In this year's first half, the company lost Bt174 million from investments in associated companies, considerably more than the loss in the same period last year of Bt99.6 million from investment in associated companies.
Ch Karnchang's costs of finance have also increased because of bond issues raising Bt3.9 billion this year, Plew said.
Sino-Thai Engineering and Construction achieved first-half revenue of Bt6.13 billion, down 13.78 per cent year on year. However, the company's net profit was Bt92 million, up 41.53 per cent.
Director Woraphant Chontong told the SET that the profit increase was due to a substantial fall in the company's financial costs. These costs fell by Bt21.37 million in the second quarter and Bt35.92 million in the first half, year on year.
Thai Contractors Association president Polpat Karnasuta, who is also president of construction firm Nawarat Pattanakarn, earlier said contractors were continuing to face tough times, because of delays in starting the government's mega-projects.
Construction firm Thai Obayashi has also warned its revenue may drop 30 per cent to Bt6 billion this year, because the number of new projects is lower than last year, due to the economic downturn.
President Sompong Chintawongvanich said demand for construction from both the government and the private sector had fallen and would not recover until construction began on the government's mega-projects next year.
Italian-Thai Development achieved first-half revenue of Bt21.16 billion, down 3.42 per cent year on year. However, the company returned to the black, from a net loss of Bt439 million in last year's first half to a net profit of Bt46.53 million in this year's first half.
The company said the profit performance came from reasons other than its business operations. It gained a Bt503 million from buying back convertible bonds, Bt142 million on exchange rates, because of the baht's appreciation, and "other income" of Bt445 million, mostly from insurance claims and claims on some project owners. Finally, it received interest income of Bt126 million.
Ch Karnchang reported revenue growth of 46 per cent, from Bt6.69 billion in last year's first half to Bt9.77 billion in this year's first half. However, its net profit fell 10.98 per cent, from Bt346 million to Bt308 million.
By way of explanation, CEO Plew Trivisvavet said that in last year's second quarter, Ch Karnchang gained Bt278.6 million from the sale of investment in an associated company and Bt114 million from exchange rates. In this year's first half, the company lost Bt174 million from investments in associated companies, considerably more than the loss in the same period last year of Bt99.6 million from investment in associated companies.
Ch Karnchang's costs of finance have also increased because of bond issues raising Bt3.9 billion this year, Plew said.
Sino-Thai Engineering and Construction achieved first-half revenue of Bt6.13 billion, down 13.78 per cent year on year. However, the company's net profit was Bt92 million, up 41.53 per cent.
Director Woraphant Chontong told the SET that the profit increase was due to a substantial fall in the company's financial costs. These costs fell by Bt21.37 million in the second quarter and Bt35.92 million in the first half, year on year.
Thai Contractors Association president Polpat Karnasuta, who is also president of construction firm Nawarat Pattanakarn, earlier said contractors were continuing to face tough times, because of delays in starting the government's mega-projects.
Construction firm Thai Obayashi has also warned its revenue may drop 30 per cent to Bt6 billion this year, because the number of new projects is lower than last year, due to the economic downturn.
President Sompong Chintawongvanich said demand for construction from both the government and the private sector had fallen and would not recover until construction began on the government's mega-projects next year.
Wednesday, August 26, 2009
CKTC wins first purple line deal
The Mass Rapid Transit Authority of Thailand yesterday officially awarded the first contract for Purple Line mass-transit rail construction, worth Bt14.292 billion, to CKTC Joint Venture.
CKTC is a joint venture between Ch Karnchang and Tokyo Construction.
Ch Karnchang chief executive officer Plew Trivisvavet said the consortium was required to finish the project within 1,350 days of the MRTA allowing it to start work.
The company will ask its construction-material suppliers to fix their costs for two years, so that it is able to control the overall project cost.
Plew said Ch Karnchang expected a net profit margin of more than 5 per cent from the contract.
The Purple Line project is divided into four civil-work contracts. Sino-Thai Engineering and Construction, winner of the second contract, has agreed to reduce its bid price from Bt15.3 billion to Bt13.1 billion.
The Power Line Engineering-led consortium - winner of the third contract - also lowered its price, from Bt6.3 billion to Bt5.025 billion.
The fourth contract, which has yet to be put out to bid and involves installation of the rail system, will cost Bt4 billion.
The entire project costs Bt59.8 billion, which also includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train system.
CKTC is a joint venture between Ch Karnchang and Tokyo Construction.
Ch Karnchang chief executive officer Plew Trivisvavet said the consortium was required to finish the project within 1,350 days of the MRTA allowing it to start work.
The company will ask its construction-material suppliers to fix their costs for two years, so that it is able to control the overall project cost.
Plew said Ch Karnchang expected a net profit margin of more than 5 per cent from the contract.
The Purple Line project is divided into four civil-work contracts. Sino-Thai Engineering and Construction, winner of the second contract, has agreed to reduce its bid price from Bt15.3 billion to Bt13.1 billion.
The Power Line Engineering-led consortium - winner of the third contract - also lowered its price, from Bt6.3 billion to Bt5.025 billion.
The fourth contract, which has yet to be put out to bid and involves installation of the rail system, will cost Bt4 billion.
The entire project costs Bt59.8 billion, which also includes Bt9.2 billion for land expropriation, Bt1.296 billion for project design consultancy and Bt13.243 billion for the signalling and train system.
Monday, August 24, 2009
CHARNCHAI DEFERS DECREE ON POLLUTION
The Industry Ministry yesterday postponed to the beginning of next month its decree for controlling industrial plants with serious environmental impacts.
"I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
"I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.
"I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
"I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.
CHIA MENG TO TAKE RICE COST HIKES IN ITS STRIDE
Chia Meng Marketing, producer of Hong Thong rice, plans to maintain retail prices until year-end despite a surge in some operating costs, particularly global oil prices, which have affected transportation costs.
Managing director Sopan Manathanya yesterday said the company's transportation and packaging costs were all linked to oil prices.
Oil prices have increased more than 10 per cent since early this year. However, rice traders cannot adjust the retail prices of bagged rice, as they come under the price-control list of the Commerce Ministry.
"Rice is on the ministry's product watch list. If producers want to increase prices, they must seek ministry approval.
"Whether we adjust the retail prices of our rice will depend on the government's subsidy policy, as well. We'll consider the market situation before deciding," she said.
Meanwhile, the government's policy of opening bidding for a big lot of rice through the Agricultural Futures Exchange of Thailand for the first round early this month made an impact on the market's jasmine-rice price. Traders offered high prices to win the bidding amid the rice shortage. Therefore, Chia Meng had to purchase jasmine rice at prices higher than normal.
Chia Meng secured 100,000 tonnes of the total 300,000 tonnes of jasmine rice in the first round of bidding. The government will open a second round of bidding for jasmine rice tomorrow, and the company may join the bidding.
Sopan said Chia Meng Marketing planned to increase promotion campaigns and marketing events, for which it usually joins hands with department stores, in order to boost sales this year. It has not decided on discounting the retail prices of rice for promotion campaigns this year.
She said Chia Meng Marketing recently launched V-Life by Hong Thong, with three formulas: Gaba, Triple King and Pink Fragrant. V-Life by Hong Thong is targeted at health-conscious consumers.
"We're interested in developing rice for health-conscious consumers, because Thais have paid more attention to this variety of rice. The market value of this segment last year was Bt450 million, up more than 30 per cent from 2007, while that of jasmine rice increased at a lower rate of 10 per cent," she said.
The combined value of Thailand's bagged-rice market last year was Bt20 billion, of which Bt450 million was in the rice-for-health segment. Sopan predicts the market value of the new segment could reach Bt1 billion in three years. She added that Chia Meng Marketing now had an 11-per-cent share of the rice-for-health segment but expects to increase that to 20 per cent this year while doubling sales in the segment to Bt100 million after introducing V-Life by Hong Thong.
Managing director Sopan Manathanya yesterday said the company's transportation and packaging costs were all linked to oil prices.
Oil prices have increased more than 10 per cent since early this year. However, rice traders cannot adjust the retail prices of bagged rice, as they come under the price-control list of the Commerce Ministry.
"Rice is on the ministry's product watch list. If producers want to increase prices, they must seek ministry approval.
"Whether we adjust the retail prices of our rice will depend on the government's subsidy policy, as well. We'll consider the market situation before deciding," she said.
Meanwhile, the government's policy of opening bidding for a big lot of rice through the Agricultural Futures Exchange of Thailand for the first round early this month made an impact on the market's jasmine-rice price. Traders offered high prices to win the bidding amid the rice shortage. Therefore, Chia Meng had to purchase jasmine rice at prices higher than normal.
Chia Meng secured 100,000 tonnes of the total 300,000 tonnes of jasmine rice in the first round of bidding. The government will open a second round of bidding for jasmine rice tomorrow, and the company may join the bidding.
Sopan said Chia Meng Marketing planned to increase promotion campaigns and marketing events, for which it usually joins hands with department stores, in order to boost sales this year. It has not decided on discounting the retail prices of rice for promotion campaigns this year.
She said Chia Meng Marketing recently launched V-Life by Hong Thong, with three formulas: Gaba, Triple King and Pink Fragrant. V-Life by Hong Thong is targeted at health-conscious consumers.
"We're interested in developing rice for health-conscious consumers, because Thais have paid more attention to this variety of rice. The market value of this segment last year was Bt450 million, up more than 30 per cent from 2007, while that of jasmine rice increased at a lower rate of 10 per cent," she said.
The combined value of Thailand's bagged-rice market last year was Bt20 billion, of which Bt450 million was in the rice-for-health segment. Sopan predicts the market value of the new segment could reach Bt1 billion in three years. She added that Chia Meng Marketing now had an 11-per-cent share of the rice-for-health segment but expects to increase that to 20 per cent this year while doubling sales in the segment to Bt100 million after introducing V-Life by Hong Thong.
Thursday, August 20, 2009
SIMPLY MODERN TOWNHOUSES
Developer Sansiri's Piwattana subsidiary has launched its lates townhouse project, called Habitia at Ring Road-Ram-Indra.
The project has a market value of Bt450 million, with units starting at Bt1.79 million. There are 245 units, of which 30 have already been sold.
The style-desing theme for the project is "Simply Modern", with simplicity but added functions.
The two-storey units have floor space of 112 spuare metres, consisting of three bedrooms and two bathrooms. The 6-metre width of the units also allows parking space for two cars.
This project will have a grand opening on the second weekend of next month.
Piwattana's architect said the townhouse project was designed with concern for the lifestyle of homeowners and catered especially to younger-generation buyers seeking privacy and a quiet community. Hence, the "simply modern" approach to designing the townhouses to match customer demand.
The project will also have a clubhouse and gardens that will provide a green area for home-owners.
"'Simply Modern' looks easy, but it provides more functions in a home, to match a young lifestyle," he said.
The project has a market value of Bt450 million, with units starting at Bt1.79 million. There are 245 units, of which 30 have already been sold.
The style-desing theme for the project is "Simply Modern", with simplicity but added functions.
The two-storey units have floor space of 112 spuare metres, consisting of three bedrooms and two bathrooms. The 6-metre width of the units also allows parking space for two cars.
This project will have a grand opening on the second weekend of next month.
Piwattana's architect said the townhouse project was designed with concern for the lifestyle of homeowners and catered especially to younger-generation buyers seeking privacy and a quiet community. Hence, the "simply modern" approach to designing the townhouses to match customer demand.
The project will also have a clubhouse and gardens that will provide a green area for home-owners.
"'Simply Modern' looks easy, but it provides more functions in a home, to match a young lifestyle," he said.
State jobs buoy firms this year
Construction for both the public and private sectors this year is likely to shrink by between 4.5% and 8.1%, even with government investment helping to drive improvement, according to Kasikorn Research Center.
Government investment in the construction industry in the second half was estimated to have declined by a range of 0.2% to 6.7% year-on-year, improving from a contraction of between 3.4% and 8.2% in the first half, and resulting in a full-year contraction of between 1.6% and 7.4%.
Private investment is projected to drop by 7.0% to 8.1% in the second half compared to a range of 7.4% to 9.4% in the first half, leading to a full-year contraction of 7.2% to 8.7%.
The research centre said the economic stimulus package, Strong Thailand, would be an essential mechanism to revive activity in the construction industry. With a focus on small projects, the government can certainly implement those projects in the second half, it pointed out.
"Government construction will be the first sector to recover, followed by the commercial, residential and industrial sectors," the centre noted.
The government's "dustless road" project is to be implemented nationwide,which should be good for local contractors. There are irrigation projects and infrastructure investment, including the Purple Line mass-transit route between Bang Yai and Bang Sue that should be started by the end of this year.
Other positive factors in the second half from the centre's point of view include the recovery of the local economy,the measures to stimulate the real estate industry and rising construction material prices that may speed up the decision for investment.
The main negative factor to consider is government investment could be delayed if politics become unstable again,worsening the forecast.
Other hurdles that would hinder the revival of the industry include the uncertainty of an economic recovery, stricter loan approvals by financial institutions,the continuing panic surrounding H1N1 influenza, rising product prices and the inefficiency of budget reimbursement programmes.
Government investment in the construction industry in the second half was estimated to have declined by a range of 0.2% to 6.7% year-on-year, improving from a contraction of between 3.4% and 8.2% in the first half, and resulting in a full-year contraction of between 1.6% and 7.4%.
Private investment is projected to drop by 7.0% to 8.1% in the second half compared to a range of 7.4% to 9.4% in the first half, leading to a full-year contraction of 7.2% to 8.7%.
The research centre said the economic stimulus package, Strong Thailand, would be an essential mechanism to revive activity in the construction industry. With a focus on small projects, the government can certainly implement those projects in the second half, it pointed out.
"Government construction will be the first sector to recover, followed by the commercial, residential and industrial sectors," the centre noted.
The government's "dustless road" project is to be implemented nationwide,which should be good for local contractors. There are irrigation projects and infrastructure investment, including the Purple Line mass-transit route between Bang Yai and Bang Sue that should be started by the end of this year.
Other positive factors in the second half from the centre's point of view include the recovery of the local economy,the measures to stimulate the real estate industry and rising construction material prices that may speed up the decision for investment.
The main negative factor to consider is government investment could be delayed if politics become unstable again,worsening the forecast.
Other hurdles that would hinder the revival of the industry include the uncertainty of an economic recovery, stricter loan approvals by financial institutions,the continuing panic surrounding H1N1 influenza, rising product prices and the inefficiency of budget reimbursement programmes.
Wednesday, August 19, 2009
Blue Line bidding open to foreign firms
The Mass Rapid Transit Authority's board has agreed to open bidding for the Bt76-billion Blue Line urban electric-train project to foreign as well as local contractors.
"We opted for international bidding rather than an electronic auction as the project size is huge, and foregin contractors should be allowed to participate," Tawalyarat Onsira, an MRTA director, said after the board's meeting yesterday.
The meeting discussed both sections of the Blue Line, from Bang Sue to Tha Phra and from Hualamphong to Bang Khae.
The MRTA will now update the project cost, and the terms of reference should be ready for the board's consideration next month.
If the Comptroller-General's Office approves the international-bidding method, the bid documents should be available in October.
The Public Debt Management Office yesterday informed the MRTA's board that the Blue Line's constructin would be financed by domestic borrowing. This will shorten the bidding process to between three and six months, said Tawalyarat.
If the Finance Ministry sought financial support from the Japan International Cooperation Agency, the process could take eight to 12 months.
Tawalyarat said the bidding results should be known by next February. Bidders will be required to pass general qualification criteria, meet the technical construction requirements and quote competitive prices.
Of the current Blue Line project cost of Bt76 billion, Bt48.8 billion is for civil works and Bt25 billion for rolling stock.
Board member Chairat Chumwong will chair a committee to take care of land expropriation for the construction of the Blue and Purple lines. About 30 per cent of the land to locate the Purple Line is yet to be expropriated.
The board yesterday gave its stamp of approval to the qualifications of four companies - AEC, Thai MM, Systra snd PPS - bidding for the Purple Line's construction-project management contract, worth Bt1.3 billion.
"We opted for international bidding rather than an electronic auction as the project size is huge, and foregin contractors should be allowed to participate," Tawalyarat Onsira, an MRTA director, said after the board's meeting yesterday.
The meeting discussed both sections of the Blue Line, from Bang Sue to Tha Phra and from Hualamphong to Bang Khae.
The MRTA will now update the project cost, and the terms of reference should be ready for the board's consideration next month.
If the Comptroller-General's Office approves the international-bidding method, the bid documents should be available in October.
The Public Debt Management Office yesterday informed the MRTA's board that the Blue Line's constructin would be financed by domestic borrowing. This will shorten the bidding process to between three and six months, said Tawalyarat.
If the Finance Ministry sought financial support from the Japan International Cooperation Agency, the process could take eight to 12 months.
Tawalyarat said the bidding results should be known by next February. Bidders will be required to pass general qualification criteria, meet the technical construction requirements and quote competitive prices.
Of the current Blue Line project cost of Bt76 billion, Bt48.8 billion is for civil works and Bt25 billion for rolling stock.
Board member Chairat Chumwong will chair a committee to take care of land expropriation for the construction of the Blue and Purple lines. About 30 per cent of the land to locate the Purple Line is yet to be expropriated.
The board yesterday gave its stamp of approval to the qualifications of four companies - AEC, Thai MM, Systra snd PPS - bidding for the Purple Line's construction-project management contract, worth Bt1.3 billion.
Tuesday, August 18, 2009
ISRAEL HALTS NEW WEST BANK PROJECTS, OFFICIALS SAY
Israel has quietly stopped approving new building projects in the West Bank while publicly still refusing US demands for an official settlement freeze, government officials said yesterday.
President Barack Obama's administration has pushed Israel to shelve all settlement construction to allow peace talks to go forward, a demand Israel has said it cannot accept. The issue has grown into a rae public disagreemtn between the two allies.
However, several government officials said yesterday that Israel had decided to temporarily stop greenlighting new projects because of all the international pressure.
The move falls short of the US demand because it doesn't amount to a full freeze.
Still, it could be an indication Israel is seeking a compromise with Washington over the issue.
The decision to temporarily shelve new construction was made jointly by Prime Minister Benjamin Netanyahu, Defence Minister Ehud Barak and Housing Minister Ariel Atias, the officials said, speaking on condition of anonymity because no formal ruling has been announced.
Ron Nachman, the mayor of the settlement of Ariel, said the government was not allowing any new construction. He said that Netnyahu, elected on a hawkish platform with support from settlers, was now implementing dovish policies that are crippling Ariel and other settlements.
If the policies continue "the goverment's days will be numbered", Nachman said.
President Barack Obama's administration has pushed Israel to shelve all settlement construction to allow peace talks to go forward, a demand Israel has said it cannot accept. The issue has grown into a rae public disagreemtn between the two allies.
However, several government officials said yesterday that Israel had decided to temporarily stop greenlighting new projects because of all the international pressure.
The move falls short of the US demand because it doesn't amount to a full freeze.
Still, it could be an indication Israel is seeking a compromise with Washington over the issue.
The decision to temporarily shelve new construction was made jointly by Prime Minister Benjamin Netanyahu, Defence Minister Ehud Barak and Housing Minister Ariel Atias, the officials said, speaking on condition of anonymity because no formal ruling has been announced.
Ron Nachman, the mayor of the settlement of Ariel, said the government was not allowing any new construction. He said that Netnyahu, elected on a hawkish platform with support from settlers, was now implementing dovish policies that are crippling Ariel and other settlements.
If the policies continue "the goverment's days will be numbered", Nachman said.
Royal House expects homebuilding to dominate
The property market in downtown Bangkok over the next 10 years will be dominated by homebuilders while low-rise housing developers will be pushed to the outskirts, said Sakda Kovisuth, managing director of homebuilder Royal House Co Ltd.
Land costs in Bangkok's central areas rule out developing low-rise units in the heart of the city, he said.
During the first half of the year, most of Royal House's customers were in downtown Bangkok, with Ratchadaphisek Road being a leading location,he said.
"Many homeowners don't want to live far from where they work, due to traffic jams," he said."On Ratchadaphisek Road, they can live near mass transit and their houses only need a makeover."
While homeowners on Ratchadaphisek Road want to stay in the area to be near the MRT, homeowners on Sukhumvit Road want to sell their plots at attractive prices to condominium developers.
"But building a house in Bangkok downtown is not easy. Some plots are small and many roads and sois are very narrow," he said.
To tap rising demand, the company launched three-storey designs last year and got a good response, he said.
The homebuilding market in the second half of the year will improve from the first half as the world economy is in an upward trend, said Mr Sakda.
"Many stimulus packages will take effect in the second half," he said.
"I believe Thailand can overcome any potential deterioration in the political situation. We've done it before."
The company expects to achieve sales of 830 million baht in 2009, up from 730 million last year, due to improved market sentiment. In the first half of the year,the company passed its target with sales of 430 million baht.
Royal House plans to launch four highend housing designs with usable areas of 850-1,200 square metres and priced from 15 to more than 20 million baht at the Home Builder Fair from tomorrow at Queen Sirikit National Convention Centre.
"Some cash-rich customers told us they got a negative impact from the economic downturn so they had more free time to build a house. In a sluggish economy, they expected lower-priced materials and more bargaining power than homebuilders in cost negotiations,"said Mr Sakda.
Land costs in Bangkok's central areas rule out developing low-rise units in the heart of the city, he said.
During the first half of the year, most of Royal House's customers were in downtown Bangkok, with Ratchadaphisek Road being a leading location,he said.
"Many homeowners don't want to live far from where they work, due to traffic jams," he said."On Ratchadaphisek Road, they can live near mass transit and their houses only need a makeover."
While homeowners on Ratchadaphisek Road want to stay in the area to be near the MRT, homeowners on Sukhumvit Road want to sell their plots at attractive prices to condominium developers.
"But building a house in Bangkok downtown is not easy. Some plots are small and many roads and sois are very narrow," he said.
To tap rising demand, the company launched three-storey designs last year and got a good response, he said.
The homebuilding market in the second half of the year will improve from the first half as the world economy is in an upward trend, said Mr Sakda.
"Many stimulus packages will take effect in the second half," he said.
"I believe Thailand can overcome any potential deterioration in the political situation. We've done it before."
The company expects to achieve sales of 830 million baht in 2009, up from 730 million last year, due to improved market sentiment. In the first half of the year,the company passed its target with sales of 430 million baht.
Royal House plans to launch four highend housing designs with usable areas of 850-1,200 square metres and priced from 15 to more than 20 million baht at the Home Builder Fair from tomorrow at Queen Sirikit National Convention Centre.
"Some cash-rich customers told us they got a negative impact from the economic downturn so they had more free time to build a house. In a sluggish economy, they expected lower-priced materials and more bargaining power than homebuilders in cost negotiations,"said Mr Sakda.
SOCIAL NETWORKING FOR CORE INDUSTRIES
Software Park Thailand and its parent organisation, the National Science and Technology Development Agency, are working with the Industry Ministry to set up pilot projects using service-based technologies aimed at lifting the performance of Thailand's core industries, tourism agriculture.
Manoo Ordeedolchest, president of Software Park Thailand's board and a member of the NSTDA's board, said the park would fill the role of a technology supporter. Initially, it will help to produce human resources with service-based technology skills, but eventually it will develop a service-based platform called a Digital Connected Service, to work for the two flagship industries.
In part, the move is a bid to drive and promote the local software industry in the new era of a service-based economy. The park plans to be more proactive in promoting and building awareness of service-based technologies among local software businesses.
The key to service-based technology is service-oriented architecture (SOA). There are two main styles of Web services developed by SOA: simple object access protocol (Soap) and representational state transfer (Rest). The goal is to identify component-based software technology that will enable small-and medium-sized software companies to develop software in compenent form, rather than as completed applications or solutions.
One example of a Rest-based SOA is Amazon's affilate network - or, for that matter, any e-commerce affiliate network. Another example of a Rest-based SOA is Google's AdSense network. REST-based SOAs are bound to see much wider adoption throughout the web than Soap-based SOAs.
Manoo said the park planned to promote and build awareness of Rest-based SOAs among local software companies.
"Rest-based SOAs are lightweight SOAs that suit small- and medium-sized enterprises (SMEs). They can be designed and developed for easy, uncomplicated tasks. A viral effect is built around this kind of SOA.
"The park will join with universities in promoting this kind of technology through interdisciplinary curricula," he said.
Meanwhile, the park is also planning to launch a social website in the next two months to promote component-based software technology throughout the online community. The website will initially offer 40-50 component software prototypes designed according to REST-based SOA. By the end of this year, it plans to have about 200 component-software pieces available.
"This social website will be designed as a component-software marketplace for both users and developers. Users, especially SMEs, can visit to find the component software they need, by shopping or posting their requirements. Software houses will then have a great channel by which to reach the market - especially SMEs - and will have a chance to learn and work on SOA," Manoo said.
As well, Software Park Thailand will introduce its Digital Connected Service, which it hopes will apply the principles of current popular social networks to the real industryh sectors.
The park will work with partners to integrate the social network technology and Web 2.0 with "last mile" communication channels such as community radio, to deliver information and services to agricultural producers and tourism businesses in remote areas.
"This pilot will be a trial for integration and use of advance technology - Web 2.0 - and traditional communication - community radio channels. It will not only prove the concept of blending these technologies to help lift up the country's core real sectors, but also create new market opportunities for local software businesses," Manoo said.
Manoo Ordeedolchest, president of Software Park Thailand's board and a member of the NSTDA's board, said the park would fill the role of a technology supporter. Initially, it will help to produce human resources with service-based technology skills, but eventually it will develop a service-based platform called a Digital Connected Service, to work for the two flagship industries.
In part, the move is a bid to drive and promote the local software industry in the new era of a service-based economy. The park plans to be more proactive in promoting and building awareness of service-based technologies among local software businesses.
The key to service-based technology is service-oriented architecture (SOA). There are two main styles of Web services developed by SOA: simple object access protocol (Soap) and representational state transfer (Rest). The goal is to identify component-based software technology that will enable small-and medium-sized software companies to develop software in compenent form, rather than as completed applications or solutions.
One example of a Rest-based SOA is Amazon's affilate network - or, for that matter, any e-commerce affiliate network. Another example of a Rest-based SOA is Google's AdSense network. REST-based SOAs are bound to see much wider adoption throughout the web than Soap-based SOAs.
Manoo said the park planned to promote and build awareness of Rest-based SOAs among local software companies.
"Rest-based SOAs are lightweight SOAs that suit small- and medium-sized enterprises (SMEs). They can be designed and developed for easy, uncomplicated tasks. A viral effect is built around this kind of SOA.
"The park will join with universities in promoting this kind of technology through interdisciplinary curricula," he said.
Meanwhile, the park is also planning to launch a social website in the next two months to promote component-based software technology throughout the online community. The website will initially offer 40-50 component software prototypes designed according to REST-based SOA. By the end of this year, it plans to have about 200 component-software pieces available.
"This social website will be designed as a component-software marketplace for both users and developers. Users, especially SMEs, can visit to find the component software they need, by shopping or posting their requirements. Software houses will then have a great channel by which to reach the market - especially SMEs - and will have a chance to learn and work on SOA," Manoo said.
As well, Software Park Thailand will introduce its Digital Connected Service, which it hopes will apply the principles of current popular social networks to the real industryh sectors.
The park will work with partners to integrate the social network technology and Web 2.0 with "last mile" communication channels such as community radio, to deliver information and services to agricultural producers and tourism businesses in remote areas.
"This pilot will be a trial for integration and use of advance technology - Web 2.0 - and traditional communication - community radio channels. It will not only prove the concept of blending these technologies to help lift up the country's core real sectors, but also create new market opportunities for local software businesses," Manoo said.
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