Dr Boon, who is CEO of the Ratchthani Group and also President of a Consultants’ Board of Thonburi Hospital Group, which runs Phuket’s OrBorJor Hospital, was in Phuket with a group of Chinese investors on Saturday (June 9) to look at the island’s potential for investment.
The group of Chinese are from the Nanjing-based United Forces Group (UFG), ranked number eight among institutional investors in China.
Dr Boon said that they had expressed interest in the Patong Tunnel project. However, he noted that with its high budget of B6 billion, it might take 15 to 20 years for investors to realise a profit from the project, “which is something the company have to think about carefully”.
The Governor of the Expressway Authority of Thailand (EAT), Aiyanat Tinapai – which the government has given the responsibility of getting the project going – announced on Friday (June 8) that the EAT might raise loans itself for the project, backed by government guarantees.
However, Mr Boon expressed doubts about the ability of the Thai government to repay the loans, should EAT be unable to do so.
“The government is already carrying a high level of debt. There is little possibility that it will help Phuket pay [for the project and improvement of infrastructure],” said Mr Boon.
Offering the ICEC as an example, he pointed out that the government had approved construction at a cost of B2.6 billion, but that no budget had been set aside for this.
“The way to realise projects is either through joint ventures with international companies, or by declaring Phuket an SEZ so that local authorities can collect Phuket’s income and tax and use them to develop the island’s infrastructure.”
For example, he said, if Phuket were an SEZ it might lease to an investor the 1,000 rai of land in Mai Khao earmarked for the ICEC. Phuket authorities could then use that money to fund infrastructure projects such as the light rail project.
Phuket would also be able to set its own regulations and bylaws, and would have a governor elected by the islanders.
This autonomy would free Phuket from the “tedious process” of getting government approval for big-ticket infrastructure projects, which has been holding back development of the island’s infrastructure, Mr Boon said.
“If we want Phuket to develop, we have to think out of the box,” said Mr Boon. “Phuket can realise its potential efficiently if it is allowed to depend on itself.”
The Chinese, led by the Chairman of UFG, Zhai Shao Jun, also visited other major tourist hubs in Thailand including Pattaya, Hua Hin and Surat Thani to look for projects they might put money into.
“Today, China is one of the world’s biggest investors with more than US$3 trillion (B90 trillion) in funds that are ready to be spent,” said Dr Boon.
“If this company invests in a big project in Thailand, they will encourage other Chinese to follow.”