BAM teams up with CODI supplying 3 land plots for 140 households affected by dam construction at Ladprao canal and Chao Phraya river

          BANGKOK — Bangkok Commercial Asset Management Public Company Limited (BAM) collaborated with Community Organizations Development Institute (CODI) and supplied 3 plots of land in Minburi and Nonthaburi district with a total area of about 6 rai (9,600 sq.m), worth more than 20 million baht. The aim was to be home for 140 households who were affected by the dam construction project at Ladprao canal, the Chao Phraya riverside development project, and the eviction of private landlord.

          July 25, 2017, 2:30 PM—the press conference of the “Collaboration between Bangkok Commercial Asset Management Public Company Limited (BAM) and Community Organizations Development Institute (CODI) on the Residential Development Project of Baan Mankong Collective Housing, Communities along the Ladprao Canal, and Chao Phraya Riverside Communities” was held at BAM headquarters, Bangrak district, Bangkok. The event was presided by the permanent secretary of Ministry of Social Development and Human Security Mr. Maitri Inthusut and witnessed by BAM’s president Mr. Krit Sesavej. The representatives from BAM and CODI thereafter signed the Land Sale and Purchase contract.

          Mr. Maitri revealed that CODI, under the supervision of the Ministry, was assigned by the Government to lay out an action plan for residents affected by the construction of flood-protection dam at Ladprao canal and the development project of Chao Phraya riverside area.

          CODI has determined 3 approaches to remedy those affected by the dam construction: (I) if the demolition leaves some unoccupied area, a community may resettle in such area by leasing land plot from the Treasury Department; (II) CODI shall provide new housing from another existing residential projects such as the National Housing Authority’s Baan Ua Arthorn—the low cost collective housing project; (III) if there happens to be no residential area available along the canal, CODI will go through the land purchasing process for building new community.

          “Recently, we had purchased 2 land plots from private sector in order to initiate new housing in Saimai district. Today, we allied with BAM as it supplied 3 land plots giving home to 140 households affected by the dam construction, the development of Chao Phraya riverside area, and the eviction of private landlord,” said Mr. Maitri.

          BAM’s 3 land plots include the following: a plot in Bueng Nai Pol project (now conveyed), Minburi district, 2 rai (3,200 sq.m), 5.2 million baht, giving shelter to 40 households affected by the dam construction; another Bueng Nai Pol plot that has been conveyed covering 37 households from Rong Chang community (the community was formerly located in the private area in Bangkapi district, joining CODI’s Baan Mankong project after evicted in 2015); and a plot in Bang Yai district, Nonthaburi province, 2.5 rai and 56 sq.wah (4,224 sq.m), 10,165,000 baht, of which the contract was just signed today accommodating 63 more households affected by the Chao Phraya riverside development project. The total value of the 3 land plots is 20,565,000 baht.

          Mr. Krit Sesevej, the president of BAM, stated that the contract signing between BAM and CODI, which was part of the Baan Mankong project, aimed at providing housing for low-income earners. The two organizations has maintained firm relationship since they signed an MOU in 2012 under the same goal: to help the unprivileged.

          BAM plays a huge part in managing distressed assets and turning them into the performing loans back in the system. As it holds a large number of housing loan accounts, BAM acknowledges owning a house can be someone’s lifetime dream. The company then launched a campaign called “Sook jai Dai Baan Keun” in an effort to help reduce debtors’ burden through debt-restructuring scheme. Meanwhile, CODI has a similar objective concerning the improvement of people’s quality of life by giving support to all community services.

          With mutual intention, both organizations seemed to complement one another and benefit Baan Mankong project. BAM has an advantage of holding more than 15,000 units of properties for sale located nationwide; therefore, it can supply CODI with the residential properties which can be put into good use for the housing project.

          Mr. Somchat Parasuwan, CODI’s acting director, revealed that CODI had been working on the action plan for the communities within the affected area. It would urge those communities to form a savings group functioning as a residential development fund. Later on, they would have to register as a housing cooperative in order to perform any transaction. Once everything has been arranged, a community may initiate a residential development project and propose to CODI for budget, subsidies, and loans. For example, each household in canal-side community would be granted a subsidy of 140,000 baht and up to 360,000 baht worth of land and home loan. The proposed budget is approved collectively through the community cooperative. At the time, the cooperative is fully entitled to allocate budget for such activities as hiring a contractor. 

          Communities affected by the Chao Phraya riverside development project were moving new residential area in BAM’s property in Bang Yai district, Nonthaburi. There were 4 communities, namely, Mitr Kam 1, Mitr Kam 2, Chao Mae Tubtim Shrine, and Ratchapa-Tubtim. The land plot were situated along the river in Dusit district accomodating 63 households with the total area of 2.5 rai and 56 sq.wah (4,224 sq.m), reclaimed.   

          As the land sale contract has been signed, the contractor would start cultivating and expect to begin the construction process by August. The housing was designed to be 2-floored townhouse with the area of 32 sq.wah. CODI would provide subsidies and budget for public utility, worth 75,000 baht per house, and grant each household up to 360,000 baht worth of home loan for 6-month construction, expected to finish by the beginning of 2018.

          Mr. Somchat added that there were total 12 communities consisting of 309 households affected by the Chao Phraya riverside development project. Besides 4 communities relocating to BAM’s property in Bang Yai district, another 5 communities with 64 households has already settled in an Army Flat Kiakkai since 2016, and another 2 communities with 23 households are moving to the National Housing Authority’s Baan Ua Arthorn Tha Tamnak project, Nakorn Pathom province. However, Thewarat Kunchorn Temple community with 33 households refused to leave claiming that their community had a land-lease contract directly with the temple. One hundred and twenty six more communities insisted they would not be joining the project.

          Regarding the consequences of the dam construction at Ladprao and Bang Sue canals, 52 communities with 7,081 households are affected immensely as their houses must be torn down. Once the demolition is done, residents may resettle in the area given that they redesign the new layouts and rebuilt the entire community. As of now, 12 communities with 839 houses have already been built, while others—including BAM’s Bueng Nai Pol in Minburi district—are under construction. Moreover, some communities had bought 2 land plots in Sai Mai district from private sector which could accommodate 468 households.

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