Minister of transport halts 49-billion-baht expressway project
Project would connect the Si Rat Expressway to Ngamwongwan and Prasert Manukit roads, but financial study indicated it would yield negative returns
Minister of Transport Suriya Juangroongruangkit has announced that the Expressway Authority of Thailand (EXAT) plans to cancel the underground-tunnel component of the Phase 3 Northern Expressway project (N1 section), which would connect the Si Rat Expressway to Ngamwongwan and Prasert Manukit roads. A financial study by EXAT indicated the project would yield negative returns.
“EXAT, as an investment-driven organisation, requires projects to be financially viable, not just economically beneficial,” said Suriya, who also holds the post of deputy prime minister.
“For economic viability, the Ministry of Transport would need to allocate a support budget. Given the costs of construction and maintenance, the project appears financially infeasible and will likely be postponed.”
The study found that while the project’s economic internal rate of return (EIRR) was 19.20%, the financial internal rate of return (FIRR) was negative, making the investment unprofitable for EXAT.
The N1 section spans 10.55 kilometres, with a projected cost of 49.22 billion baht, starting at the Si Rat Expressway-Ngamwongwan intersection and ending at Prasert Manukit Road, connecting to the N2 section at Sukhonthasawat Junction.
