The Don Muang Tollway will be extended by 18 kilometres, effectively connecting its Rangsit-Bang Pa-in section to the M6 motorway to Nakhon Ratchasima, the Department of Highways has announced.
The proposed 40-billion-baht extension, which will also link up the elevated tollway to the M6 motorway project, might be up and running by 2025, said department chief Anon Luangboriboon yesterday.
The extension will be divided into two contracts -- one concerning the physical construction work worth 28.1 billion baht, while the other governs the management of the project's costs, valued at 11.8 billion baht.
Two public-private partnership (PPP) models are being studied -- net cost and gross -- with an economic internal rate of return set at 13%.
Under the net cost arrangement, the private partner collects fare revenues at a specified minimum rate that covers the project's operating cost. The government is obliged to cover any operational losses, but any profit made by the private partner has to be shared with the government as previously agreed.
With the gross cost model, the state will assume the responsibility of collecting the fares, which a private company will be granted a concession to operate and maintain the facility.
Mr Anon said a market sounding process will be held, where businesses and prospective investors will be invited to give their ideas about the project.
"Their input will be incorporated into the project, the details of which will be wrapped up and forwarded to the Transport Ministry for consideration at the end of this year or by latest early next year," he said.
After that, the project will be referred to the State Enterprise Policy Office and the PPP Committee, which will decide whether to approve it in principle.
Mr Anon said the bid could be called as early as 2021, and the winning bidder announced later in the same year. "Construction is expected to begin in 2022," he said.