The Market Sounding for
Sri Rat - Dao Khanong - Western Outer Ring Road Expressway
Project
Expressway Authority of Thailand (EXAT), a state owned
enterprise under the Ministry of Transport, has a purpose in
the implementation of Sri Rat - Dao Khanong - Western
Outer Ring Road Expressway Project. It will follow the Act on
Private Participation in State Undertaking B.E. 2556 (2013).
EXAT will be responsible in expropriation while the investors
will
be
responsible in civil
design,
M&E,
operation,
maintenance, and toll collection. The Concessionaire shall
have the rights in toll revenue receiving.
Therefore, EXAT wishes to conduct a market sounding of the
project. Any investors who are interested in this project,
please fill out our questionnaire. The information we obtain
from any investors shall not be disclosed to the public in any
circumstances.
Information concerning this project together with the
questionnaire can be downloaded via the internet at
http://www.exat.co.th. Please return the questionnaire to the
address below or e-mail to off_infor@exat.co.th within August
9, 2013.
The Governor of the Expressway Authority of Thailand
Expressway Authority of Thailand
2380 Paholyotin Road,
Senanikom Sub District, Chatuchak District,
Bangkok 10900
EXPRESSWAY AUTHORITY OF THAILAND
MINISTRY OF TRANSPORT
Market Sounding Document
FOR
Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway Project
Concession Project for Investment of Construction and
O&M Work with
the Right in Toll Revenue Receiving
July 2013
Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway Project
1. Introduction
Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway
Project
consists
of
2 projects namely Sri Rat - Dao Khanong and Dao Khanong
- Western Outer Ring Road. The connection of the 2
projects is located in Dao Khanong area. According to the
study, both projects ought to be constructed and opened to
the public at the same time in order to alleviate bottleneck
problem at Dao Khanong Toll Plaza. It also helps alleviate
traffic congestion on Rama II Road where it already
accommodates high travel demand near its capacity.
Implementation of Sri Rat - Dao Khanong - Western Outer
Ring Road Expressway Project shall be our goal to relieve
traffic congestion on Rama II and other roads in the vicinity
alike.
Expressway Authority of Thailand (EXAT) realizes that Sri
Rat - Dao Khanong - Western Outer Ring Road Expressway
Project is one of Thailand’s megaprojects and it has some
great benefits to the public. An opportunity shall be opened
-2-
to any private firms who are interested in an investment of
the project by “Public - Private Partnerships” (PPPs) in Build
- Transfer - Operate (BTO).
Sri Rat-Dao Khanong - Western Outer Ring Road
Expressway
Project
will
also
follow
The Act on Private Participation in State Undertaking B.E.
2556 (2013).
EXAT has prepared this market sounding document
regarding the future investment of the project. Please note
that this document (attached herewith) is not the Term of
Reference (TOR), but a market sounding questionnaire for
any investors who have an interest in the project.
-3-
2. Objective
The objective of the market sounding exercise is to ascertain
level of interest from market in Private - Public Partnerships
investment under Build - Transfer - Operate (BTO) scheme
for Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway Project and collect the opinion including
suggestion from private investors who are interested in this
Project in order to obtain sufficient information for the
successful
execution
of
the Project.
3. Target Groups
3.1 Expressway operators in Thailand and other countries
3.2 Investors in Thailand and other countries
3.3 Financial institutes who are interested in the Project
funding
4. Detail of the Project
4.1 Project Description
(1) Objective of the Project
Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway Project is a new radius expressway
-4-
connecting Bangkok Metropolitan Area, suburban
areas, and regional provinces in the south of
Thailand. It will ease traffic congestion as it will
reduce travel time on Rama II Road. It can serve as
an emergency route for transportation of passengers
and goods movement (such as the case of the great
flood in 2011).
(2) Route Alignment
Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway starts at Rama II Road, Soi 82 and will
be constructed on the median of Rama II Road
which is be elevated along Rama II Road at the
average elevation 15.75 meter and elevated over 1st
Stage Expressway. The new bridge over the Chao
Phraya River will also be constructed parallel to
Rama IX Bridge. The end of the project is located at
the Bang Khlo Interchange (1st Stage Expressway/
Sri
Rat
Expressway).
The
total
distance
is
approximately 18 km. and its route alignment is as
shown in Figure 1.
-5-
End
Start
Figure 1: Route Alignment of Sri Rat-Dao Khanong-Western
Outer Ring Road Expressway Project
(3) On and Off Ramps
There are 6 locations of on and off ramps along Sri
Rat-Dao Khanong - Western Outer Ring Road
Expressway Project. These on and off ramps will be
constructed
on
the
medians
between
main
carriageway and frontage roads as shown in Figure
2. The details of all on and off ramps are as follows:
1) On & Off Ramps no. 1:
Road near Soi 82
Located on Rama II
-6-
2) On & Off Ramps no. 2:
Located on Rama II
Road near Soi 63
3) On & Off Ramps no. 3:
Located on Rama II
Road near Soi 55
4) On & Off Ramps no. 4:
Located on Rama II
Road near Soi 33
5) On & Off Ramps no. 5:
Located on Rama II
Road near Soi 27
6) On & Off Ramps no. 2: Located on Suksawat
Road near Suksawat Toll Plaza of 1st Stage
Expressway
Figure 2:
A Typical Cross Section of Sri Rat - Dao
Khanong - Outer Ring Road Expressway
Project showing On & Off Ramps
-7-
(4) Interchanges
Sri Rat - Dao Khanong - Western Outer Ring road
Expressway project has an interchange connecting
the 1st Stage Expressway and Sri Rat in the vicinity
of Bang Khlo Interchange as shown in Figure 3.
Rama IX Bridge
parallel
Rama IX
Bridge
Bang Klo Interchange
Sri Rat
Expressw
ay Bridge
1st Stage
Expressway
Figure 3: An Interchange between the 1st Stage Expressway and
Sri Rat at Bang Khlo Interchange
(5) Schedule
The construction of Sri Rat - Dao Khanong Western Outer Ring Road Expressway Project will
-8-
be implemented from 2013 - 2019 and open in April
2019 as its work schedule is shown in Table 1.
(6) Investment Cost
The approximate Investment cost for Sri Rat-Dao
Khanong - Western Outer Ring Road Expressway
Project is 28,517 million baht which is comprised of:
-
Design Review & Construction Supervision: 470
million baht
-
Construction Work: 25,580 million baht
-
Expropriation: 2,467 million baht
-9-
Table 1: The Work Schedule of Sri Rat - Dao Khanong - Western Outer Ring Road Expressway Project
item
Work
Duration
1
EXAT prepares and submits the Project’s feasibility
Sep 2013 –
study to the Ministry of Transport for an approval, the
Feb 2014
detail of the Project to the State Enterprise Policy Office
(6 months)
(SEPO) for opinions, and submits it to the Private
Partnership Participation Committee for a general
consent. Finally, the project will be submitted to
the Cabinet for an approval concerning the type of PPP.
2
EXAT sets up a Committee, prepares drafts of Term of
Reference, PPP Contract, and draft notice for PPP.
Mar 2014 –
Jun 2014
(4 months)
3
Announcement of Bidding to Investor. Investor summits
Tender Document.
Jul 2014 – Sep
2014
(3 months)
4
Selection of Investor who offers the best benefit to the
Oct 2014 – Jan
2015
Year
2013
2014
2015
2016
2017
2018
2019
- 10 -
5
project in accordance to the Term of Reference (TOR).
(4 months)
Preparation of Document for the Selection of Investor
Feb 2015 –
and drafted PPP Contract submitted to the State
May 2015
Enterprise Policy Office (SEPO). It will later be
(4 months)
summated to the Ministry of Transport for an approval
from the Government.
6
Issuing of the Expropriation Decree.
Jun 2015 – Jan
2016
(8 months)
7
Expropriation
Feb 2016 –
Jan 2017
(18 months)
8
Construction
Oct 2016 – Jan
2019
(30 months)
9
Open
April 2019
- 11 -
(7) Traffic Volume
From the Consultants’ traffic forecast, daily traffic
volume on Sri Rat - Dao Khanong - Western Outer
Ring Road Expressway Project in 2019 will be
107,744 PCU/day. In the last forecast year, daily
traffic volume will increase to 297,555 PCU/day.
Table 2 shows daily traffic volumes on Sri Rat - Dao
Khanong - Western Outer Ring Road Expressway
Project from 2019 - 2046.
Table 2: Daily Traffic Volume on Sri Rat - Dao Khanong Western Outer Ring Road
Expressway Project (PCU/day)
Fiscal Year
Daily Traffic Volume
(PCU/day)
2019
107,744
2021
114,704
2026
142,692
2031
197,637
2036
237,445
2041
268,809
2046
297,555
- 12 -
(8) Toll Policy
Toll rates for Sri Rat - Dao Khanong - Western Outer
Ring Road Expressway Project are as follows:
-
From Sri Rat - Dao Khanong:
Toll rate in the first opening year (2019) will be
20 Baht for 4 wheel vehicles, 40 Baht for 6 - 10
wheel vehicles, and 60 Baht for more than 10
wheel vehicles. Toll rates will be increased for
every 5 years interval based on the Consumer
Price
Index
(CPI)
of
Bangkok
which
is
announced by ministry of commerce.
-
From Dao Khanong - Western Outer Ring Road:
Toll rate in the first opening year (2019) will be
20 Baht for 4 wheel vehicles, 40 Baht for 6 - 10
wheel vehicles, and 60 Baht for more than 10
wheel vehicles. Toll rates will be increased for
every 5 years interval based on the Consumer
Price
Index
(CPI)
of
Bangkok
which
is
announced by ministry of commerce.
(9) Economic Analysis
baht
Net Present Value ( NPV) = 34,756.86 million
- 13 -
(Discount Rate = 12%)
-
Economic Internal Rate of Return (EIRR) =
-
Benefit/Cost Ratio (B/C) = 2.90
21.94 %
5. Scope of Investment
Investor who submits in the bidding process and later
awarded
the
concession
of
Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway Project shall be responsible to EXAT regarding
scope of investment as follows:
(1)
The Concessionaire shall be responsible for 2
phases as follows.
Phase 1: Design and Construction
The Concessionaire will responsible in all costs in design
and
construction
of
Sri Rat-Dao Khanong - Western Outer Ring Road
Expressway Project which include costs in the
procurement and installation of the electrical and
mechanical system, toll collection system, communication
system, traffic control system, and any other related
systems.
Phase 2: Operation and Maintenance
The Concessionaire will responsible in all costs in
operation and maintenance of the expressway which
follow standard and safety regulations. It also will maintain
the expressway in good condition for the whole period of
the concession.
- 14 -
(2)
EXAT will be responsible for the expenses in
expropriation as required for the construction work and
provide assistance in the coordination process with
related government agencies including support to the
Concessionaire in order to receive the ultimate privilege in
accordance with the Law on Promotion of Investment.
(3)
A 30 year concession of Sri Rat - Dao Khanong Western Outer Ring Road Expressway Project with the
right over toll revenue and sharing of benefit to state will
be awarded. Sharing of benefit with EXAT is as agreed
under the concession contract.
(4)
Law and Regulations concerning investment of Sri
Rat- Dao Khanong - Western Outer Ring Road
Expressway Project will be in accordance with the Act on
Private Participation in State Undertaking B.E. 2556
(2013) and the Act on the Expressway Authority of
Thailand B.E. 2550 (2007) including any other related
laws, regulations and contracts.
6. Framework in the Selection of Private Investors
The selection of investor for Sri Rat-Dao Khanong - Western
Outer Ring Road Expressway Project will follow the Act on
Private Participation in State Undertaking B.E. 2556 (2013).
EXAT shall set up a committee to oversee this process. The
primary criteria are as follows:
6.1 Qualifications of Investors
The Concessionaire shall have good financial record
with an approximate minimum paid - up registered
capital of Baht 2,000 million. The Concessionaire shall
- 15 -
also
have
experiences
in
design-construction
of
expressways, project management and operation and
maintenance of the expressway.
6.2 Preparation of Proposal
Any investor who has an interest in Public Private
Partnerships
of
Sri
Rat
-
Dao Khanong - Western Outer Ring Road Expressway
Project
will
prepare
the
proposal
follow
to
the
requirement in the Tender Documents as set forth by the
Committee and submit to EXAT.
6.3 Build - Transfer - Operate (BTO)
The selection of investor will follow the Act on Private
Participation in State Undertaking B.E. 2556 (2013) and
the Act on the Expressway Authority of Thailand B.E.
2550 (2007).
- 16 -
7. Market Sounding
EXAT will not disclose the received information to the third
party and will not be responsible for any costs and expenses
that may occur in responding to this market sounding. EXAT
has no obligation to follow any suggestions or requests
given by the respondent to questionnaire.
Respondent to questionnaire of this market sounding
document is able to be returned to EXAT during August 2 to
August 9, 2013 between 8:30 to 16:30 to this address:
The Governor of the Expressway Authority of
Thailand
Expressway Authority of Thailand
2380 Paholyotin Road
Senanikom Sub District, Chatuchak District,
Bangkok 10900
Tel: 0 2579 5380-9 Ext 2133 Fax: 0 2940 1226
with a word on the envelope corner “(Market
Sounding)”
or e-mail to off_infor@exat.co.th
- 17 -
8. Questions
8.1 Are you interested in investing in this Build - Transfer Operate (BTO) project with the Government? Please
specify the scope of your investment that interests you.
 An expressway operator
 Private investors
 Financial institutions
 Etc
8.2 For allocation of project funding, do you have any
comments, opinions, and/or requests for any financial
support from the Government?
- 18 -
8.3 Since the Government shall have responsibilities in
expropriation and cooperating with relevant agencies, do
you have any comments and/or recommendations for
the ultimate benefits to the project?
- 19 -
8.4 Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway Project is a mega project which requires
great amount of investment; do you have comments
and/or recommendations for the ultimate benefits to the
project?
- 20 -
8.5 For the operation and maintenance of the project, do
you have any recommendations, opinions, and/or
requests for any financial support from the Government?
8.6 As this project shall follow Build - Transfer - Operate
(BTO) scheme, do you have any recommendations
and/or opinions concerning benefit sharing and financial
return to the state to be fair to the Government and the
private sector?
- 21 -
8.7 As Sri Rat - Dao Khanong - Western Outer Ring Road
Expressway Project is a mega project, in order to
efficiently implement the project, do you think you should
be offered some support from the government? If yes,
please specify:
1) Privilege Tax/ Tax - Accounting Incentive
2) Cooperation & support from other relevant
government agencies
3) Public Concerns
- 22 -
8.8 In specifying the qualifications of investor to own
approximately the paid - up capital of 2,000 million Baht,
do you think whether the figure is suitable or not? How?
- 23 -
8.9 Do you have any opinions and/or recommendations
concerning the financial cost of the private sector and
suitable financial returns from investing in this project?
8.10
Do you have any other opinions and/or suggestions
to our Committee of Public -Private Partnership
Investment for Sri Rat - Dao Khanong - Western Outer
Ring Road Expressway Project to consider?
- 24 -
9. Contact Address
Company Profile
Name
:
:
Company
:
Address
:
- 25 -
Telephone
:
number
Fax number
:
e-mail
: