Exat delays N1 expressway tunnel project

Transport Minister Suriya Jungrungreangkit confirmed the Expressway Authority of Thailand’s (Exat) decision to postpone the plan to build a tunnel to replace a controversial section of the N1 Expressway.
He said on Monday the decision was based on a study which suggests the high cost of building the underground section will bring the project’s financial internal rate of return (FIRR) to negative.
“Exat is a state enterprise, so the investment must generate financial benefits,” he said.
Earlier, Exat governor Surachet Laophulsuk said the Exat board had acknowledged the agency’s decision to delay the project due to the negative FIRR projection. The project’s equity internal rate of return (EIRR) was estimated to be 19.2%.
Based on the latest feasibility study of the N1 Expressway scheme, the project is estimated to cost about 49.22 billion baht to build. Of this amount, 44.5 billion will be spent on construction, 3.6 billion baht on land expropriation, and 1.06 billion baht on construction supervision.
Exat proposed a tunnel despite its high cost due to opposition to the expressway’s original route from local communities along the planned route and Kasetsart University.
The expressway would run along Ngam Wong Wan Road via Phongphet intersection, Bang Khen intersection, and Kaset intersection to Prasertmanukit Road before connecting with the N2 Expressway.