The decision comes despite recommendations from the Ministry of Transport to consider modifications that could lower construction costs and enhance safety, noted a brief report posted online by the Office of Natural Resources and Environmental Policy and Planning (ONEP) today (Aug 20.)
EXAT has sent a formal letter to the Ministry, stating that any adjustments to the tunnel design would require a complete reassessment of the project’s Environmental Impact Assessment (EIA) report, a process that could delay the project by at least one year, said the report.
To avoid such delays, EXAT has decided to self-finance the project, with an estimated budget of B16 billion, the report added.
“The agency is currently exploring funding options, including the possibility of securing loans or issuing bonds,” ONEP noted.
Originally, the project was to be developed through a public-private partnership (PPP). However, due to a lack of interest from the private sector during the bidding process, with the project receiving no bids from contractors, EXAT has proposed to the Ministry of Transport to revise the investment plan, allowing EXAT to take full control of the funding and construction.
The proposal is expected to be submitted to the new Cabinet, whenever that is created, for approval before the end of this year, the report said.
Paetongtarn Shinawatra, selected on Friday and formally installed as the 31st prime minister of Thailand on Sunday, has yet to select her Cabinet.
If and when the new Cabinet grants its approval, EXAT will promptly begin the contractor selection process, which is anticipated to take around six months.
Construction is scheduled to start in 2025, with the expressway expected to be operational by 2029, said the ONEP report.
The project aims to alleviate traffic congestion, reduce accidents on Route 4020 (Wichit Songkram Rd) and provide an evacuation route in case of emergencies, it added.
Additionally, the tunnel project will enhance connectivity between Kathu and Patong, supporting local travel and boosting tourism in Phuket, the report concluded.