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Unofficial Translation of NCPO order on Special Economic Zone

(Unofficial translation)

Order of the Head of the National Council for Peace and Order (NCPO) no.17/258 on The Expropriation of Land for the Development of Special Economic Zone

In pursuance to the nine major strategies announced by the National Council for Peace and Order (NCPO) to guide and shape the reform and development of the country into an appropriate direction and to enable sustainable development as espoused in Strategy no.5 concerning the enhancement of interconnectedness with regional countries for economic and social security and to accelerate the development of Special Economic Zone to devolve prosperity to potential regions, particularly along the border with neighboring countries, in order to achieve the tasks, it is necessary to accelerate the process to procure land needed for the development of Special Economic Zone and to promptly implement the Strategy. The Head of the National Council for Peace and Order (NCPO) deems it fit for the benefit of the nation’s economic reform to invoke Section 44 of the Constitution of the Kingdom of Thailand (Interim), B.E. 2557 (2014), and by approval from the National Council for Peace and Order (NCPO), to order the following;

Article 1 In this Order

“The Committee” means the Committee on Special Economic Zone Policy by the NCPO Order no. 72/5887 on the Appointment of the Committee on Special Economic Zone Policy dated 19 June 2014. Where no such Committee exists, it shall mean the Council of Ministers or a Committee appointed by the Council of Ministers.

“Development zone” means an area which is a part of Special Economic Zone designated by the Committee for the development of industry, commerce, tourism or other utilizations beneficial for the development or promotion of a Special Economic Zone and including area in the existing Industrial Estate established by the Act on Industrial Estate Authority of Thailand.

“Special Economic Zones” means the Tak Special Economic Zone, Mukdahan Special Economic Zone, Srakaew Special Economic Zone, Songkhla Special Economic Zone, and Trat Special Economic Zone according to the Committee on Special Economic Zone Policy Announcement no. 1/2558 on the Designation of Special Economic Zones dated 19 January 2015 and the Nong Khai Special Economic Zone according to the Committee on Special Economic Zone Policy Announcement no. 2/2558 on the Designation of Special Economic Zones dated 24 April 2015.

Article 2 All the following land shall be declared Ratchaphatsadu land (state-owned-property) whereby all other land statuses shall be repealed.

(1) Land in the vicinity of Tambon Tha Sai Luad, Mae Sot District, Tak, within the zone demarcated in the Map no.1/8 appended to this Order, and as a result of which its Forest Reserve status as per the Ministerial Regulation no. 945 (B.E. 2524) issued by virtue of the National Reserved Forest Act B.E. 2507 and the Permanent Forest status as per the cabinet resolution and the public land status for common use of people shall be repealed.

(2) Land in the vicinity of Tambon Kham Ar Huan, Muang Mukdahan District, Mukdahan, within the zone demarcated in the Map no.2/8 appended to this Order, and as a result of which the Permanent Forest status as per the cabinet resolution and the Agricultural Reform Area as per the Royal Decree for the Expropriation of Land in the vicinity of Tambon Kham Pah Lai, Tambon Ban Koke, Tambon Dong Mon, Tambon Kud Khae, Tambon Pone Sai, Tambon Kham Ar Huan, Muang Mukdahan District, Tambon Khamchaee, Khamchaee District, and Tambon Nong Waeng, Nikhom Khamsroi District, Mukdahan declared as part of the Agricultural Reform Area in 1993 shall be repealed and the revocation of the public land status for common use of people.

(3) Land in the vicinity of Tambon Ban Rai, Aranyaprathet, Srakaew, within the zone demarcated in the Map no.3/8 appended to this Order, and as a result of which its Forest Reserve status as per the Ministerial Regulation no. 24 (B.E. 2507) issued by virtue of the National Reserved Forest Act B.E. 2507 and the Permanent Forest status as per the cabinet resolution and the public land status for common use of people shall be repealed.

(4) Land in the vicinity of Tambon Mai Rood, Klong Yai District, Trat, within the zone demarcated in the Map no.4/8 appended to this Order, and as a result of which the status of the public land for common use of people shall be repealed.

(5) Land in the vicinity of Tambon Srakrai, Srakrai, Nong Khai, within the zone demarcated in the Map no.5/8 appended to this Order, and as a result of which the status of the public land for common use of people shall be repealed.

Article 3 All the land expropriated as Ratchaphatsadu land by virtue of this Order and all other land designated by the Committee to be used as development zone in Special Economic Zone as per the Maps no. 6/8, 7/8 and 8/8 appended to this Order shall not be subjected to the enforcement of the law for land utilization as per the Ministerial Regulations concerning the comprehensive town and city plan until a new comprehensive town and city plan is made and enforced covering the land which is a part of the development zone and after the establishment of development zone.

The establishment of development zone in the first paragraph shall include the leasing of the land as per Article 6.

Article 4 Where a dispute arises as per the demarcation lines in the Maps stipulated in Article 2 or Article 3, concerned agencies shall propose the matter for decision to be made by the Committee and the decision made by the Committee shall be treated as final.

Article 5 Where a private party owns or holds the right to occupy the land within the zones designated in the Maps in Article 2 and expropriated as the Ratchaphatsadu land as per Article 2 and the topography of the land is disjointed or would not enable the best use of the land, the Committee has the power to instruct all concerned agencies to swap a piece of Ratchaphatsadu land with the land owned by the private party based on the terms and conditions set forth by the Committee. And if necessary and for the benefit of the government, monetary compensation can be made for the exchange of the entire or part of the land.

A private party as per the first paragraph shall include a temple and a state enterprise as well.

The land acquired by means specified in the first paragraph shall be classified as Ratchaphatsadu land as per Article 2.

Article 6 Regarding the utilization of land as per Article 2 or other Ratchaphatsadu land within the development zone, the Treasury Department shall assign government agencies to utilize the land or assigns the Industrial Estate Authority of Thailand (IEAT), other government agencies or private agencies to lease the land and use it as development zone within the duration, based on the procedure, methods and conditions as well as leasing rates set out by the Committee.

The leasing duration as per the first paragraph shall not be less than fifty years per time. A renewal can be made based on the terms and conditions set out by the Committee as per the first paragraph, and Article 540 of the Civil and Commercial Code can be applied.

The leasing as per the first paragraph shall not be treated as a joint-venture as per the law allowing a private sector to co-invest in a state enterprise.

Provisions in the first, second and third paragraphs shall be applied mutatis mutandis with the land stipulated in Article 3, which is not a part of Ratchaphatsadu land.

Article 7 The land leaser as per Article 6 has the right to sublet or to utilize it according to their objectives and all the buildings developed herein by either the leaser or the sub-leaser shall belong to the leaser or the sub-leaser except for buildings developed for public interest.

Article 8 Articles 6 and 8 of the Act on the Hire of Immovable Property for Commerce and Industry B.E. 2542 (1999) shall be applied mutatis mutandis with the lease or subletting of the land within the development zone. Such leasing, even for land larger than 100 rais, no permission from the Director General of the Land Department is required.

Article 9 All the immovable property obtained by the swapping as per Article 5 shall be exempted from all fees regarding the registration and transaction. If the existing law requires payment of taxes for the acquisition or swapping of such immovable property, the land shall be exempted from such taxes.

Being effective from now on.
Issued on 15 May 2015
Gen. Prayuth Chan-ocha
Head of the National Council for Peace and Order