Phuket expressway’s Kathu-Patong phase targeted for Q3 2027 tender

Thailand’s Expressway Authority (EXAT) is preparing to seek Cabinet approval in December 2026 for the first phase of a Phuket expressway, with tendering targeted for the third quarter of 2027 and opening planned for 2031, its governor said.

The Kathu-Patong phase will cover 3.98 kilometres and cost an estimated B16.757 billion. Surachet Laophulsuk, governor of EXAT, said the authority expects to complete the tender documents by April 2027, select a contractor in the third quarter and begin construction in October 2027. Construction is expected to take about four years.

The project is part of a planned 34.60-kilometre Phuket expressway costing B84.218 billion. The second phase, covering New City, Koh Kaew and Kathu, will extend for 30.62 kilometres and cost B67.461 billion. Both phases are planned to be fully operational in 2031.

For the first phase, land acquisition is valued at B5.792 billion, with 99.43% of the required expropriation completed, according to EXAT. Construction and supervision are estimated at B10.965 billion.

The design has been revised in response to higher fuel and construction-material costs, geological findings and requirements related to earthquake resilience. The tunnel width has been reduced from 17.1 metres to 14.2 metres, while its length will remain 1.85 kilometres.

EXAT has proposed tolls of B10 for motorcycles, B20 for four-wheel vehicles, B40 for vehicles with six to 10 wheels and B60 for vehicles with more than 10 wheels. Initial revenue is projected at about B0.96 million per day. The project’s estimated financial internal rate of return is 1.81%, while its economic internal rate of return is 19.47%.

EXAT expects the Kathu-Patong section to reduce the journey from about 30 minutes to five minutes. The tunnel is planned to carry both cars and motorcycles. Construction procurement will use an open invitation process, while joint ventures may also bid provided a Thai contractor leads the group.

The second phase is expected to complete detailed design in January 2027 and be submitted to the Cabinet in October 2027. Land acquisition is planned from January 2027 to December 2030, followed by construction from October 2028 to September 2031. The phase includes B29.5478 billion for land acquisition and B37.91392 billion for construction and supervision.

EXAT said the second phase has become more expensive because global economic conditions have raised construction costs. Its financial return may not exceed borrowing costs, but the authority is continuing to seek reductions in construction expenditure while prioritising safety.

Operations and maintenance systems for the second phase, estimated at about B1.5 billion, are planned as a public-private partnership. Two commercial areas are also planned: a 37-rai service area at kilometre 3+900 on the outbound side towards the airport, and a 13-rai rest stop at kilometre 16+400 near the Spur Line junction. Both are initially expected to involve private investment.

The proposed financing structure is still being discussed with Thailand’s State Enterprise Policy Committee. One option is an infrastructure fund using revenue from the Bang Phli-Suksawat expressway, which currently generates about B2.6 billion a year. EXAT expects about B1 billion of that revenue could be allocated to the fund. If the Cabinet approves the first phase, the fund could be established in early 2027.

Traffic in the first year of operation is forecast at approximately 50,000 to 60,000 vehicles a day, including cars and motorcycles.