could treble upon granting of leases, page-6

Bowerboy, we are dealing with a complex Thai bureaucracy that makes progress at a snail's pace and rest assured this is not just happening to KCN. There is a massive backlog of projects waiting for approval.

For example, the following from today's Bangkok Post is quite comical.

"The listed developer Prinsiri Plc (PRIN) admitted that it illegally started construction on The Pulse Phahon Yothin 37 condominium as it did not have the proper construction permits.

The Bangkok Metropolitan Administration forced the company to stop construction. Now Prinsiri says it will belatedly follow the law and wait for the proper permits to be approved.

''We admitted we were wrong as we didn't have construction permits before starting construction,'' Pornprom Vongpivat, the company's vice-president for finance, said yesterday.

The 636-million-baht Pulse Phahon Yothin 37 is designed to have two buildings with a total of 308 units. Construction on Tower A was 40% complete, while Tower B was 80% omplete. Construction on both has been stopped.

''Like other condominium developers, we asked for construction approval via Article 39 of the Building Control Act by submitting the plan of both buildings with fewer than 79 units, and we would correct the design later,'' he said.

Prinsiri could not seek permits via Article 39 for both buildings together as they would be located on the same plot and developed by one firm. As such, it started building Tower B first while waiting for environmental impact assessment (EIA) approval.

At the same time, it submitted an EIA for Tower A before seeking a construction permit. However, it had to adjust the EIA report three times after waiting for six months, and it still hasn't been approved.

''On the last submission, our management expected to obtain EIA approval and the company would have transferred units to customers as promised in May this year. So we started the construction of Tower A.''

Although Prinsiri did not receive EIA approval for Tower A, it refused to stop building until the Bangkok Metropolitan Authority (BMA) ordered it to stop building both towers. Tower A had no permit while Tower B was constructed with an incorrect plan.

He said the BMA gave the company a chance to obtain a legal construction permit.

The company needed to submit a Khor. 1 under Article 21 for retroactive construction approval, but would have to pay a fine of about three million baht for building without a permit.

At the same time, the company would refund down payments, including compensation of 7.1% interest per year, for any customers who wanted to return units. To date, only 10 of 300 units were returned, said Mr Pornprom."
http://www.bangkokpost.com/Business/01Apr2008_biz30.php

Comment:
Now where else but Thailand would this happen? Maybe KCN should just get on with things on the assumption that everything has been approved? lol rofl
At least KCN has an environmental approval, unlike listed developer Prinsiri Plc.