Thailand seeks private investment for Phuket expressway project
The Expressway Authority of Thailand (EXAT) is seeking private sector involvement in the Phuket Expressway Project to enhance road infrastructure, alleviate traffic congestion, and improve connectivity for both locals and tourists.
On March 7, a public hearing took place at the Carlton Hotel Bangkok Sukhumvit, where private investors were invited to share their views on the project’s feasibility and investment potential.
The consultation aims to gather valuable insights from investors, which EXAT plans to utilise for the efficient and sustainable development of Phuket’s expressway network.
EXAT Governor Surachet Laopoolsuk led the session, highlighting the agency’s dedication to upgrading Phuket’s road system through a Public-Private Partnership (PPP) model, as outlined in the Public-Private Partnership Act of 2019.
The project is structured in two phases: the Kathu-Patong Section, spanning 3.98 kilometres, and the Mueang Mai-Koh Kaew-Kathu Section, covering 30.62 kilometres, making a total of 34.60 kilometres.
The government is responsible for land acquisition, while EXAT will manage the design, construction, and maintenance, including toll collection and traffic control systems.
Private investment is sought for various aspects, with Phase 1 expected to cost 16.76 billion baht (US$499 million) and Phase 2 projected at 45.93 billion baht (US$1.36 billion).
System work construction for both phases is estimated at 2.23 billion baht (US$66.46 million), with operation and maintenance costs over 30 years projected at 24.8 billion baht (US$739 million).
The toll for Phase 1 will adopt a flat-fee structure, starting in 2030 at 15 baht (US$0.45) for motorcycles, 40 baht (US$1.2) for four-wheel vehicles, 85 baht (US$2.5) for six- to 10-wheel vehicles, and 125 baht (US$3.73) for larger trucks.
Phase 2 will use a distance-based toll system, with base fees of 40 baht (US$1.2), 80 baht (US$2.4), and 120 baht (US$3.6) for different vehicle categories, plus additional per-kilometre charges, reported Phuket News.
Traffic forecasts predict around 69,386 vehicles daily by 2030. The project’s financial internal rate of return (FIRR) is 1.82%, with an economic internal rate of return (EIRR) at 18.85%, demonstrating strong economic potential.
According to a report by Matichon, Surachet remains confident that construction of the expressway will commence within the year.
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