Transport Minister Cancels 49-Billion-Baht Expressway Project
Financial Study Shows Negative Returns for Underground Tunnel Component
Minister of Transport Suriya Juangroongruangkit has announced the suspension of the underground tunnel component of the Phase 3 Northern Expressway project (N1 section), intended to connect the Si Rat Expressway with Ngamwongwan and Prasert Manukit roads.
The Expressway Authority of Thailand (EXAT) found that the project would not be financially viable, despite an economic internal rate of return (EIRR) of 19.20%.
The financial internal rate of return (FIRR) was negative, indicating unprofitability.
As EXAT focuses on financially viable investments, the project will be postponed unless the Ministry of Transport provides a budget to support it.
The proposed N1 section was expected to span 10.55 kilometers, at a cost of 49.22 billion baht, linking the Si Rat Expressway-Ngamwongwan intersection with Prasert Manukit Road, and further connecting to the N2 section at Sukhonthasawat Junction.
The Expressway Authority of Thailand (EXAT) found that the project would not be financially viable, despite an economic internal rate of return (EIRR) of 19.20%.
The financial internal rate of return (FIRR) was negative, indicating unprofitability.
As EXAT focuses on financially viable investments, the project will be postponed unless the Ministry of Transport provides a budget to support it.
The proposed N1 section was expected to span 10.55 kilometers, at a cost of 49.22 billion baht, linking the Si Rat Expressway-Ngamwongwan intersection with Prasert Manukit Road, and further connecting to the N2 section at Sukhonthasawat Junction.
