The decision, made on Aug 26, allows EXAT to proceed with a Design & Build approach for the 3.98-kilometre ‘Phase 1’ route (the Patong Tunnel), shifting away from the private-sector investment plan approved by Cabinet in January 2022.
That plan failed after no private sector entities entered a bid for the project under the terms and conditions offered.
Under the revised model now announced, EXAT will raise funds by borrowing or issuing bonds, with support from the Ministry of Finance to secure appropriate financing. The total budget for the Patong Tunnel project alone is set at B10.96 billion, covering construction and supervision costs.
The project has also been granted approval for highway zoning subsidies in line with the 2021 Highway Zone Usage Act, with a highway usage fee of B7.75 million per year, EXAT said in its announcement.
The Patong Tunnel project will link Phra Metta Rd in Patong to Route 4029 in Kathu via an elevated road and a tunnel through Khao Nakkerd hills.
The project includes a 900-metre stretch of elevated roadway, a 1.85km tunnel, and a further 1.23km of elevated road. The design provides four lanes in each direction, split between cars and motorcycles.
The most recent previous reports of the project noted that construction was to begin next month, with completion scheduled for October 2028.
However, the latest EXAT announcement said, “When completed in 2030, motorists will pay a flat toll, starting at B15 for motorcycles, B40 for cars, B85 for 6-10-wheel vehicles, and B125 for vehicles with more than 10 wheels. Toll rates are set to rise every five years.”
EXAT did not clarify when actual construction will now begin, despite providing a new completion date two years later than previously announced.
EXAT said the expressway will dramatically reduce travel times between Kathu and Patong, ease congestion and improve safety on Highway 4029, and support Phuket’s growing tourism and logistics needs.
“The project will enhance Phuket’s transportation infrastructure, improve quality of life for residents and visitors, and build confidence in the province’s readiness for future growth,” EXAT said in its statement.
As of last month, progress on the Patong Tunnel project was already visible on the ground. Land expropriation has been completed and Patong Municipality, assigned by EXAT, began clearing the designated sites, with demolition of structures expected to be finished by this Sunday (Sept 7).
According to Patong Municipality Council President Weerawit Kreuasombat, the expropriation budget totals about B5.75bn, and further disbursement of funds is tied to the complete clearance of all buildings within the project area. Approximately 230 eligible recipients have already received their compensation.