EXAT teams up with private firms for Phuket expressway by 2030
The Expressway Authority of Thailand (EXAT) is collaborating with private entities to invest in two Phuket expressways, spanning 34.6 kilometres, with a budget of 27 billion baht.
The project is expected to be operational by 2030, with toll fees ranging from 15 to 125 baht. Surachet Laophulsuk, the governor of EXAT, announced the opening of an opinion hearing for private sector involvement in the review and analysis of the Phuket expressway project under the 2019 Public-Private Partnership Act. The first phase covers Kathu-Patong, while the second phase extends from Mueang Mai to Koh Kaew to Kathu.
Previously, EXAT opened bids for the Kathu-Patong expressway, covering 3.98 kilometres in Phuket, but no private entities submitted bids due to expected returns being less than 10%, making it unappealing for private investment due to construction costs.
Surachet further explained that EXAT plans to open bids for private investment in installing operations and maintenance (O&M) systems, including toll collection systems, with a total budget of 27.03 billion baht. This includes 712 million baht for toll collection and traffic control systems in phase one and 1.518 billion baht for similar systems in phase two. The O&M concession period for both projects is 30 years, with a combined budget of 24.8 billion baht.
Construction
EXAT will invest in the civil construction of both projects. The Ministry of Finance has approved the Kathu-Patong expressway phase one, which is expected to be submitted to the Cabinet for approval to find construction contractors within this year. Construction is anticipated to take four years before services commence.
For the second phase, the expressway from Mueang Mai to Koh Kaew to Kathu spans 30.62 kilometres and is currently undergoing legal procedures. It is expected to be submitted to the Cabinet by the end of 2025, with construction bidding anticipated in 2026. The construction is planned to take three years, with services starting by 2030.
The opinion hearing aims to gauge private sector interest and provide accurate information to build investment confidence, ensuring all necessary data is available for project analysis under the 2019 Public-Private Partnership Act. The Phuket expressway project is an alternative travel option aimed at alleviating traffic congestion on Thepkrasattri Road (Highway 402) and Phra Baramee Road (Highway 4029), enhancing Phuket’s transportation capabilities.
EXAT has studied the approach for the Phuket expressway project, with the state responsible for land rights, while EXAT handles design and civil construction. The project encompasses the installation and management of toll collection and traffic control systems. Recognising the potential of the private sector, EXAT invites private investment in the project. The investment value includes land rights, civil works (including construction supervision), and system construction costs. Phase one costs approximately 16.759 billion baht, while phase two costs approximately 45.93 billion baht, with system construction costs totalling approximately 2.23 billion baht. The O&M costs for both phases over 30 years total approximately 24.8 billion baht, reported KhaoSod.
For phase one, toll fees will be a flat rate at 15/40/85/125 baht for motorcycles, four-wheel vehicles, six to ten-wheel vehicles, and over ten-wheel vehicles, respectively, at the opening year (2030). Phase two will have a distance-based toll rate with an entry fee of 40/80/120 baht and a per kilometre toll of 1.50/3.00/4.50 baht for four-wheel, six to ten-wheel, and over ten-wheel vehicles, respectively. Traffic volume is projected to be approximately 69,386 vehicles per day by the opening year, with a financial internal rate of return (FIRR) of 1.82% and an economic internal rate of return (EIRR) of 18.85%.
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