An aerial view shows the green area next to the Airport Rail Link's Makkasan station, where the State Railway of Thailand tends to develop the site itself. KRIT PROMSAKA NA SAKOLNAKORN
The debt-ridden State Railway of Thailand (SRT) plans to develop the 497-rai Makkasan plot by itself after revoking the debt-for-land deal with the Finance Ministry's Treasury Department.
The SRT said it intends to take over the task of developing the Makkasan plot from the Finance Ministry as it has plans to develop other prime land plots, Chakkrit Parapantakul, director-general of the Treasury Department, said.
The SRT's plan to lease the Makkasan plot to the Finance Ministry for 99 years for commercial development in return for clearing a 61-billion-baht debt was suspended after legal concerns were raised over whether it can be developed for purposes other than those related to the rail system.
Even though the commercial development of the Makkasan plot had been given the green light, the SRT recently cancelled a memorandum of understanding with the Finance Ministry.
The Treasury Department plans to develop the plot into a commercial area and public park with an estimated investment of 200-300 billion baht.
The SRT's land has been sorted into categories, comprising 21,000 rai of low-potential land that is rented to farmers, 7,200 rai making up Chatuchak market and five remaining prime plots, including Makkasan and Bang Sue as well as a site near Mae Nam railway station in Klong Toey covering a total of 277 rai.
The SRT is among seven financially troubled state enterprises required by the State Enterprise Policy Commission or superboard to undertake a business rehabilitation plan.
Mr Chakkrit said the SRT's decision to pursue the debt-for-land swap plan depended on the superboard's policy.
"It depends on the policymaker's decision. If it decides to let the SRT develop the Makkasan plot, the Treasury Department will no longer take charge of the project's development," he said.
Although the department will no longer have the right to develop the plot, it plans to develop state land across the country. The plan is expected to be finalised this month, said Mr Chakkrit.
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