By rosebell
Due to financial viability concerns, Thailand is unlikely to proceed with the underground tunnel segment of the Phase 3 Northern Expressway project (N1 section) in Bangkok, in accordance with an announcement from Thailand’s Minister of Transport, Suriya Juangroongruangkit.
The aim of this underground tunnel segment was to linking the Si Rat Expressway to Ngamwongwan Road and Prasert Manukit Road in Bangkok.
Nevertheless, the project would not generate sufficient financial returns, as it reported in The Nation according to the Expressway Authority of Thailand’s (EXAT) a financial study.
Being designed to improve connectivity within northern Bangkok, the N1 segment encountered challenges as its financial internal rate of return (FIRR) was found to be negative, despite an economic internal rate of return (EIRR) of 19.2%.
Minister Suriya, who also serves as Deputy Prime Minister, said: “EXAT requires projects to be financially viable. As an investment-driven organisation, EXAT demands that projects be financially viable in addition to being economically beneficial.Securing a budget allocation from the Ministry of Transport would be essential to support both the construction and maintenance of the project.”
Stretching from the Si Rat Expressway-Ngamwongwan Road intersection, and passing through Ngam Wong Wan Road, Phongphet intersection, Bang Khen intersection, as well as Kaset intersection, the 10.55-km underground tunnel would then reach Prasert Manukit Road, where it would connect with the N2 section at Sukhonthasawat Junction.
Allocating THB44.5bn ($1.28bn) budget for construction, THB3.6bn ($103.2m) for land acquisition, and THB1.06bn ($28.8m) for construction oversight, the total cost of this project was estimated at THB49.22bn ($1.4bn).
Considering that the EXAT had initially planned to be an underground tunnel due to opposition to an elevated expressway from local communities and Kasetsart University along the intended route, the projected high cost associated with this option ultimately led to its cancellation.
