Expressway Authority of Thailand Ministry of Transport Market Sounding Documentation For Kathu-Patong Expressway Project Phuket Province August 2014
Kathu Patong Expressway Project, Phuket Province 1. Introduction Kathu Patong Expressway Project, Phuket Province is the expressway that links the area of Kathu and Patong. This project will benefit the traffic and accident resolution on Highway 4029 which currently is only main route that links the area from the east of Phuket to Patong Beach.This highway on Khao Nakkerd section, distance about 3 kilometers consists of 2 lanes within narrow right of way and the alignment is winding and steep gradient. Due to the relatively high traffic and frequent accidents when heavy rain caused a travel delay, fatal and properties damage from accidents. Moreover, This Project can be used as an evacuation route in case of natural disasters such as earthquake, tsunami etc. Expressway Authority of Thailand (EXAT) realizes that Kathu-Patong Expressway Project is the infrastructure development for transportation in provincial area and it has great benefits to the public. An opportunity shall be opened to any private firms who are interested in an investment of the project by Public Private Partnerships (PPPs) in Build-Transfer-Operate (BTO). Kathu-Patong Expressway Project will also follow the Act on Private Investment in State Undertaking B.E. 2556 (2013). EXAT has prepared this market sounding document regarding the future investment of the project. Please note that this document (attached herewith) is not the Term of Reference (TOR) but a market sounding questionnaire for any investors who have an interest in the project.
2. Objectives - 2 - This market sounding is for the purpose of market testing on private sectors interest by PPPs in Build Transfer Operate (BTO) of Kathu Patong Expressway Project. The suggestions and recommendations from private investors will enhance successful to this project. 3. Target Groups 3.1 Present Expressway Operators in Thailand and from Foreign Countries 3.2 Private Investors in Thailand and from Foreign Countries 3.3 Any Interesting Financial Institutes 4. Project Details 4.1 Reason and Necessity Project will be linked from Kathu to Patong for traffic problems and accident resolution on Highway 4029 and also facilitate travel and promote tourism in Phuket. Moreover, It can be used for evacuation route in case of disasters such as earthquake, tsunami etc. 4.2 Alignment of Project (1) Main line The beginning of project is connected to Town and City Planning Road (Phang Muang Sai Kor Road) in Patong Subdistrict, Kathu District by the 6-lane road per direction on elevated structure crossover Pisitkoranee road after that the dual tunnel will pass through mountain (Khao Nakkerd) and will be the elevated structure to connect with Highway route no. 4029 (Km. 0+850) in Kathu district which is the end of project. The total distance of project is 3.98 kilometers as shown in Figure 1.
- 3 - Figure 1 Alignment of Kathu Patong Expressway Project, Phuket Province
(2) Interchange - 4 - There are two interchanges in this project, at the beginning of project on Phang Muang SaiKor Road and at the end of project on Highway route no. 4029. 2.1) Interchange at the beginning of project on Phang Muang Sai Kor Road The trumpet interchange with 2 left-turn directions, turning left from the expressway to Phang Muang Sai Kor Road for Patong and Karon Beaches destination. The other is turning left from Phang Muang Sai Kor Road to the expressway. The 2 right-turn direction, directional ramp from Phang Muang Sai Kor Road turn right to the expressway. The other is a loop ramp from the expressway turn right to Phang Muang Sai Kor Road as shown in Figure 2. Figure 2 Interchange at beginning of project on Phang Muang Sai Kor Road
- 5-2.2) Interchange at the end of project on Highway route no. 4029 This interchange has one turning left direction from Phuket city to the expressway and directional ramp from the expressway turning right to Highway route no. 4029 for Phuket City destination as shown in Figure 3. Figure 3 Interchange at end of project on Highway route no. 4029 (3) Tunnel The dual tunnel, each tunnel is 4-lanes per direction. Two traffic lanes for cars, each lane is 3.50 m. the left and right paved shoulders are 2.00 m. and 0.50 m. respectively. Another two traffic lanes for motorcycles, each lane is 1.75 m. with the left and right paved shoulders of 1.00 m. and 0.50 m. and sidewalk is on each side for maintenance and emergency. Each tunnel has internal width about 17.10m. as shown in Figure 4.
- 6-1.75 1.75 Figure 4 Cross-section of the tunnel. (4) Toll Plaza and Central Control Building. Toll plaza located only one place in Kathu area to service both directions of Kathu-Patong and Patong-Kathu, each direction contains 9 channels divided into 3 channels for motorcycles (6 booths), 5 channels for cars and 1 channel for trucks. The Central Control Building is located beside the toll plaza. 4.3 Traffic Volume The traffic volume of Kathu Patong Expressway Project, Phuket Province as shown in Table 1. Table 1 Traffic Volume of Kathu-Patong Expressway Project Fiscal Year Traffic Volume (Vehicle/Day) Motorcycle 4-Wheel 6-10 Wheel Over 10Wheel Total 2021 27,561 22,561 1,006 10 51,138 2026 29,105 23,584 1,045 11 53,745 2031 31,713 25,959 1,109 11 58,792 2036 36,359 29,645 1,215 12 67,231 2041 42,047 32,220 1,285 13 75,565 2046 49,348 36,955 1,304 13 87,620 2051 55,574 40,250 1,357 14 97,195
- 7-4.4 The toll collection Toll collection system is an open system. The toll rates in year 2022 is 15/40/80/120 Baht for motorcycle / 4-wheel vehicles / 6-10 wheel vehicles/ more than 10-wheel vehicles. 4.5 Project implementation Plan Kathu-Patong Expressway Project, Phuket Province will implement during fiscal year 2018-2022 and operate in September 2022 as shown in Table 2.
Table 2 The Implementation Plan of Kathu Patong Expressway Project, Phuket Province - 8 -
- 9-4.6 Project Investment Costs: An investment budget for Kathu Patong Expressway Project, Phuket Province is approximately 10,497 Million Baht consisting of: - Land acquisition cost, approx. 2,588 Million Baht - Construction cost, approx. 7,909 Million Baht 4.7 The Economic Feasibility Study shows that the project will be worthwhile economically with the following details: - Net Present Value (NPV). in year 2017 = 14,871 Million Baht (at the discount rate of 12%) - Economic Internal Rate of Return (EIRR) = 23.58 % - Benefit Cost Ratio (B/C) = 2.85 5. Scopes of Investment The private sector who has been appointed by the Expressway Authority of Thailand as a concessionaire of Kathu Patong Expressway Project, Phuket Province is obliged to carry out the following scopes of project investment and the Expressway Authority of Thailand is obliged to perform the following scopes of project investment: 5.1 The private sector who has been granted a concession is committed to project investment and operation in 2 phases as follows: Phase 1 The Design and Construction of the Expressway The concessionaire will be responsible for the design and construction costs of Kathu Patong Expressway Project, Phuket Province and make it complied with the concession agreement as well as provide for an installation of M&E, toll collection, communication, traffic control systems and any others as considered necessary. Phase 2 The Operation and Maintenance of the Expressway The concessionaire will be responsible for the operation cost of the expressway so that it can render service to public in an effective way with safety and according to an international standard as well as the expressway has maintained in good condition throughout the concession period of the project.
- 10-5.2 The government will support for land acquisition cost in relation to the expressway construction project while the Expressway Authority of Thailand will assist in coordination with government sectors as well as give all the possible supports to the investor. So, it can be provided with maximum benefits according to the law of investment promotion. 5.3 Concession Period: The concession period of this project is 30 years from start of construction. The concession holder obtains the right to receive the toll revenues generated from Kathu Patong Expressway Project, Phuket Province and will have to pay a portion of the toll revenues to the government as mutually agreed in the concession agreement. 5.4 Project Operation Rules and Regulations for Kathu Patong Expressway Project, Phuket Province will be according to the Private Investment in State Undertakings Policy Committee Act, B.E. 2556, the Expressway Authority of Thailand Act, B.E. 2550 and all the concerned rules, regulations and agreements. 6. Private Partner Selection Criteria A selection of the private partner for Kathu Patong Expressway Project, Phuket Province will be according to Public Private Partnership Act, B.E. 2556 while a Selection Committee will be nominated by the Expressway Authority of Thailand to set up initial selection criteria which include the following: 6.1 Qualifications of the Investor The concession holder must possess business management skill and a good financial status with at least 500 Million Baht paid-up registered capital. He/she shall also contain past experiences and records of the design construction, project management as well as operation and maintenance of the expressways. 6.2 Proposal Preparation The interesting private partners will prepare proposals in accordance with the requirements stipulated in the proposal preparation documentation, arranged by the Selection Committee of Kathu Patong Expressway Project, Phuket Province.
- 11-6.3 Private Partner Selection Process for Build-Transfer-Operate (BTO) Concession This is a concession given to private partner to operate the expressway which will be in compliance with the Public Private Partnership Act, B.E. 2556 and the Expressway Authority of Thailand Act, B.E. 2550. 7. Steps in Market Survey The Expressway Authority of Thailand will not disclose the information received to any third parties or for other unrelated purposes. And the Expressway Authority of Thailand will neither be responsible for the expenses incurred from questionnaire responses nor committed to taking actions according to the suggestions or information provided by the responders. The questionnaire responders are kindly requested to fill in their ideas or suggestions and returned to the following address, from August 13 th to August 21 th, 2014, between 8.30 a.m. to 4.30 p.m. The Governor of The Expressway Authority of Thailand, Expressway Authority of Thailand, 2380 Phahonyothin Road, Saenanikom, Chatuchak District, Bangkok 10900. Tel. 0 2579 5380-9 Ext. 2854 Fax 0 2940 1226 With a word on the envelop corner (Market Sounding) Or send E-mail to off_infor@exat.co.th
- 12-8. Questions 8.1 Do you have an interest in Build - Transfer - Operate (BTO) in this project with EXAT? Please specify the scope of your investment. As a private sector As a financial institution Others As a company that operates and maintains an expressway 8.2 Considering allocation of project funding, do you have any suggestions, options, or requests for financial supports from the government?
- 13-8.3 As Thai government shall have responsibilities in providing land, cooperating with agencies, do you have suggestions and/or opinions in order to the best implementation of this project? 8.4 As Kathu Patong Expressway Project is a megaproject which requires tremendous amount of investment, do you have any suggestions and/or opinions in order to the best implementation of this project?
- 14-8.5 Considering operation and maintenance of the project, do you have any suggestions, opinions, and/or requests for financial supports from the government? 8.6 As this project shall follow Build - Transfer - Operate (BTO), do you have any suggestions and/or opinions concerning financial return to the Thai government in order to achieve a mutual?
- 15-8.7 As Kathu Patong Expressway Project is a megaproject, in order to efficiently implement for this project, do you think you should be offered some supports from the government? If yes, please specify: 1) Privilege Tax/Account 2) Co-operations & supports from government agencies 3) Public concerns 8.8 As registered capital shall be greater than 500 Million Baht, do you think this figure is suitable or not? How?
- 16-8.9 Do you have any opinions and/or suggestions concerning investors cost of capital and the proper figure for the rate of return of this project? 8.10 Do you have any other opinions and/or suggestions to our committee concerning the implementation of Kathu Patong Expressway Project? 8.11 Do you have an opinion on the implementian plan of Kathu Patong Expressway Project, Phuket Province?
9. Address Contact Details Contact Name Position - 17 - Company Name : Company Address : : Telephone Number : Fax Number : E-mail : : :