Thoresen Thai Agencies Public Company Limited (SET: TTA) clarified to the SEC about the impact of the Central Administrative Court’s judgment, regarding the Environmental Impact Assessment (“EIA”) report of the 125 Sathorn Project (the “Project”) developed by PMT Property Company Limited (“PMTP”), a joint venture company which have a detail as follows.
- The Juristic of The Met Condominium filed a lawsuit against administrative agencies or government officials.
The Juristic of The Met Condominium filed a lawsuit against administrative agencies or government officials with the Central Administrative Court (Court of First Instance) in relation to the Environmental Impact Assessment (“EIA”) report of the Project. PMTP is merely the Project developer and not the primary defendant in this administrative court case; nevertheless, PMTP is directly impacted from the result of this case.
TTA confirmed the process of obtaining construction approval of the Project of PMTP, has been lawfully carried out in compliance with the process of the Bangkok Expert Committee of EIA on Buildings, Land Subdivision and Community Services, and the Public Works Department of Bangkok. PMTP was aware of the legal precautions and also submitted letters to obtain official confirmation pertaining to applicable approval regulations from all relevant authorities. Thereafter, the Project has obtained the approval from the relevant authorities.
- Material court order details
The Central Administrative Court ruled that the documents which have been officially issued from the Public Works Department of Bangkok to PMTP, specifying “the building area for calculation of the Floor to Area Ratio (“FAR”) for The Met Project is incorrect”.
PMTP placed reliance on the official letter of the Public Works Department of Bangkok and therefore, used the information therein in the preparation of the EIA report of the Project and complied with the EIA process. Subsequently, the Bangkok Expert Committee of EIA on Buildings, Land Subdivision and Community Services has approved the EIA report for the Project with reference to the calculation that appeared in the aforementioned official letter.
The Central Administrative Court ruled that the EIA report for the Project as approved by the Bangkok Expert Committee of EIA on Buildings, Land Subdivision and Community Services contained the information, which has been officially issued from the Public Works Department of Bangkok to PMTP, “is not the correct building area of The Met”. Therefore, the EIA report approval of the Project as well as the construction license have been affected.
- Impacts on the operations of PMTP and TTA
PMTP was directly affected by the outcome of the case. PMTP stated that it would welcome all advice from all related parties.
PMTP communicated with clients continuously and would welcomed client concerns with a courtesy, as well as forming teams to provide facts to enhance understanding of
the situation.
The Central Administrative Court’s judgment regarding the EIA report may cause further delays in the project development plan but it will not have a significant impact on the investment returns of the Project. PMTP Project’s total debt to TTA’s total shareholders’ equity is 1.8 percent (Total Project debt is calculated from land loans from a financial institution and customer deposits). This low leverage did not significantly impact TTA’s operations and financial position. In addition, it was confident that the land has potential, located in a prime area of Sathorn, in which land prices would continue to appreciate on a yearly basis.
TTA confirmed that the process of obtaining the EIA report approval from the Bangkok Expert Committee of Environmental Impact Assessment on Buildings, Land Subdivision and Community Services and the construction permit from the Public Works Department of Bangkok has been carried out in compliance with all legal requirements until it has been approved by relevant government agencies.
TTA assures its our robust financial stability and formidable investment strength. PMTP prepares resolute commitment and preparedness for contingency plans for construction progress, ensuring minimal impact on customers. PMTP remains confident that the Project will proceed until successful completion.
