KUALA LUMPUR, June 24 — U-Tapao International Aviation Company Limited (BBS Joint Venture) has secured the Thai government’s approval to manage the Utapao Rayong-Pattaya International Airport and the Eastern Airport City development project in Thailand.

U-Tapao International Aviation Company Limited said it has invested approximately THB290 million (RM40 million) in the venture and took just 47 days to prepare development plans, submit materials and negotiate in terms and conditions.

BBS Joint Venture comprises Bangkok Airways, BTS Group Holdings and Sino-Thai Engineering and Construction Company.

"This demonstrates the strong financial readiness, expertise and intention to develop the U-Tapao International Airport and Eastern Airport City Project to become the ‘Centre of Tourism Industry and Logistics & Aviation of EEC’ and the ‘Eastern Aerotropolis’; developing city area of 30km around the airport (Pattaya to Rayong) and revitalizing the Eastern Seaboard,” the firm said.

The development, under the Private Partnership Agreement between the Thai government and private sector, is expected to be completed by 2023 and will create 15,600 new jobs annually for the first five years.

The U-Tapao International Airport is also expected to become Bangkok’s third airport, joining the existing Suvarnabhumi and Don Mueang international airports.

BBS also projected a return on investment of at least THB305 billion over 50 years of operation.

U-Tapao is located approximately 140km southeast of Bangkok, about a 45-minute drive from Pattaya — Thailand’s most popular beach resort.

The airport was previously built by the United States to accommodate B-52 bombers for missions in Vietnam, Laos, and Cambodia during the Vietnam War and has retained its military connections since.

Advisor to the chief executive of Bangkok Airways Public Company Limited, Prasert Prasarttong-Osoth, said he was confident that the company and its partners will be able to develop the airport’s potential and competitiveness.

"I am very pleased and honored that the company, Bangkok Airways Public Company Limited has been a part of the U-Tapao Airport and the Eastern Aviation City Development Project, which is an important project of the country and is one of the national development strategies.

"This is in accordance with the government’s policy and development framework of the Eastern Special Development Zone which aims to have U-Tapao Airport to be the third major commercial airport in Bangkok, the EEC’s Logistics and Aviation Industry Center and the center of the eastern aviation city,” he said.

Meanwhile, Sino-Thai Engineering and Construction Public Company Limited president Pakpoom Srichamini also said his firm was proud and honored to be a part of the historical U-Tapao International Airport and Eastern Airport City Project.

"The project creates an increase of employment rate, as well as enhancing domestic and international investment in various dimensions to this Eastern aviation city, creating the highest benefit to Thailand and Thai people,” he said.

The development of the U-Tapao and Eastern Airport City comprises six projects, namely a third airport terminal; commercial gateway; air cargo and maintenance, repair and overhaul sections; free trade zone; and training centre for aeronautical personnel.

The project is expected to be fully completed by 2055 with a passenger capacity of 60 million annually after undergoing four construction phases scheduled in total.