Expressway Authority of Thailand

Ministry of Transport

Market Sounding Documentation

For

Chalongrat-Nakhon Nayok-Saraburi

Expressway Project

March 2016

1. IntroductionPresently, transport and logistics between Bangkok and surrounding areas have high density of traffic such as the road section in Pathumthani, Nakhon Nayok, and Saraburi Province. In addition, along the route from Bangkok to Saraburi have many heavy vehicles on the road that cause a delay in travelling, especially on weekend or holiday season.To reduce traffic problem on this road network, improve convenient on traveling along this route and induce land development in Pathumthani, Nakhon Nayok, and Saraburi province to help link the local economies together, Expressway Authority of Thailand (EXAT) conducted the Feasibility Study in Engineering, Economics, Finance, and Environmental Impact for Chalongrat-Nakhon Nayok-Saraburi Expressway.Expressway Authority of Thailand (EXAT) realizes great benefits of Chalongrat-Nakhon Nayok-Saraburi Expressway Project as the infrastructure development for transportation in provincial area. According to the Act on Private Investment in State Undertaking B.E. 2556 (2013), EXAT would like to invite private sectors to participate in giving suggestions and opinions on the project investment forms.Market sounding of Chalongrat-Nakhon Nayok-Saraburi Expressway Project is conducted to obtain suggestions and opinions in order to implement this project efficiently. The information obtained from investors will used for this project only.

2. ObjectivesThe purpose of this market sounding is to observe on private sectors’ interest in Chalongrat-Nakhon

- 2 -

Nayok-Saraburi Expressway Project’s investments. The suggestions and recommendations from private investors will enhance successful implementation of the project.

3. Target Groups3.1 Thai or international company that operate and maintain expressway projects3.2 Thai or international private investors3.3 Any financial institutions that are interested in expressway projects

- 3 -

4. Project Details4.1 Reason and Necessity

Presently, transport and logistics between Bangkok and surrounding the areas have been increasing in volume because of the rise in population and economic of the country that induce the expansion of residential, commercial and industrial areas around on Bangkok and surrounding province. Saraburi is one of the provinces that an industry, agricultural areas and famous tourist attraction are located in the province. In addition, it’s also the gateway to Central, North and North East region of Thailand as well. And Nakhon Nayok is the gateway to national highway No. 33 that connect to Cambodia and South Vietnam.The trip from Bangkok to Saraburi and Nakhon Nayok usually starts on Paholyothin Road (NH.1). At present, this route has a high density traffic (AADT 100,000 vehicle/day) because it is a major route to Central and North East region. There are many industrial sites along the road which induce more heavy vehicle to the road. Especially, during weekends or holiday seasons, the traffic on this road is very heavy along the route from Saraburi to Bangkok.The Expressway Authority of Thailand (EXAT) has recognized the necessity to develop the expressway network to support a demand of the travel and logistics and plan to extend the network to Chalongrat Expressway to Saraburi Province in order to create new alternative route of Bangkok-Saraburi travel as well as increase land development in Saraburi province area and surrounding expressway area.

- 4 -

4.2 Alignment of Project(1) Main line

The project is 6 lanes elevated expressway with a length of 104.52 km. The starting point of expressway connect with Chalongrat Expressway at Chatuchote ramp on Eastern Outer Ring Road (Kanjanaphisek). The expressway is leading to east bound, pass Hatairaj Road, Nimitmai Road and Lumlukka Road at km. 22+500 and pass through Nor Yor 3001, National Nuclear Technology Institute and National Highway No. 305 (Rangsit-Nakhon Nayok) at km. 59+800. The expressway will pass through National Highway No. 33 (Suwannasorn) at km. 116+000 and go along with National Highway No. 3222 until end up at Mitraphap Road (km.10+700) amphur Kangkoi, Saraburi. There are 9 on-off ramps in this project consist of :

Bangla

PattLegend On ramp

Off rampBuraphavithi-Pattaya

- 5 -

1st Point: Outer Ring Road Ramp 2nd Point: Hatairaj Road Ramp 3rd Point: Lumlukka Road (NH. 3312) Ramp 4th Point: Nor Yor 3001 (Ongkarak) Ramp 5th Point: Rangsit-Nakhon Nayok Road

(Bang-Oar) (NH. 305) Ramp 6th Point: Suwannasorn Road (Ban Na) (NH.

33) Ramp 7th Point: Motorway no.6 (Bangpa-in Nakorn

Ratchasima) Ramp 8th Point: Saraburi Bypass (NH. 362) Ramp 9th Point: Mittraphap Road (NH. 2) Ramp

- 6 -

Figure 1 Project Alignment(2) Structure

The project construction is a single column. The upper construction is 20-35 m. simple-span slab on girder. Beam system is a precast concrete I-beam. Floor is reinforced concrete formed at place and finished by asphaltic concrete. Beam system and floor has composite behavior with 2 joint bearing

- 7 -

at end of span. The lower construction is single column with cross beam at head pole. Column and beam is cast-in concrete, and the foundation system is large bored pile as shown in Figure 2.

Figure 2 Typical Cross Section

- 8 -

4.3 Traffic VolumeThe traffic volume forecasting of the Project in operating year (2024) is 84,893 Veh./day and in fiscal year 2051 is 183,965 Veh./day as shown in the table :

Fiscal Year

Traffic Volume (Veh./day)4

wheels6-10

wheels>10

wheels Total2024 74,912 3,154 6,827 84,8932026 81,409 3,337 7,246 91,992

203197,652 3,817 8,291 109,76

0

2036121,57

04,420 9,824 135,81

4

2041140,46

34,900 10,86

7156,23

0

2046155,11

55,114 11,29

7171,52

6

2051165,80

85,593 12,56

4183,96

54.4 The toll collection

Toll rate at the operating year (2024) for 4 wheels vehicle is 1.7 baht/km. (At least 25 baht). For 6-10 wheels vehicles and more than 10 wheels vehicle, toll rate are 2 and 3 times of 4 wheels vehicle respectively.In the future, toll rate will increase for every 5 years in fixed rate from toll rate plan as shown in the table :

Vehicle type

Fiscal Year2024-2027

2028-2032

2033-2037

2038-2042

2043-2047

2048-2052

Toll rate (baht/km.)4 1.7 1.9 2.2 2.5 2.9 3.3

- 9 -

wheels6-10 wheels 3.4 3.8 4.4 5 5.8 6.6>10 wheels 5.1 5.7 6.6 7.5 8.7 9.9

Minimum Charge (baht)4 wheels 25 30 35 40 45 506-10 wheels 50 60 70 80 90 100>10 wheels 75 90 105 120 135 150

4.5 Toll collection SystemIn this Project, the toll system is closed system because the feasibility of physical of project have long distance and less number of ramps. Users receive a toll card from on-ramp toll booth and will pay a toll fees at off-ramp booth according to a calculated distance that users travel on expressway. The example of toll booth is shown in Figure 3.

Figure 3 Toll booth4.6 Control Center Building Rest Area and Service Area

- 10 -

(1) Control Center Building (CCB) Control Center Building (CCB) is 8 floor building on 1,750 sq. m. area, which will be located near the rest area an along with National Highway No. 305 (Rangsit-Nakhon Nayok), amphur Banna, Nakhon Nayok Province.

(2) Rest AreaThere is only one rest area in this project on ground level which provides for a service to road user on expressway, is located in National highway 305 (Rangsit-Nakhon Nayok), amphur Banna, Nakhon Nayok Province.In the rest area, there are many services such as service building and shop, Control Center Building (CCB), emergency and traffic management building, police station, parking area and etc.

(3) Service AreaThere are 2 service areas in this project: At Mitraphap Ramp consist of 2 service

areas to serve two direction. At Lumlukka Ramp consist of 1 service

area to serve road user from Bangkok. Buildings in this areas consist of service building, OTOP Distribution Center, toilet, parking area and etc.

- 11 -

4.7 Project implementation planThe project implementation plan is summarized as below.

1 Feasibility Study 21 Months (Aug. 2014-Apr. 2016)

2 EIA Approval 18 Months (May 2016-Oct. 2017)

3 Project Approval Process 9 Months (Nov. 2017-Jul. 2018)

4 Royal Decree to Land Acquisition.

8 Months (Aug. 2018-Mar. 2019)

5 Land Acquisition. 48 Months (Apr. 2019-Mar. 2023)

6 Construction 48 Months (Apr. 2020-Mar. 2024)

7 Operation (Apr. 2024)4.8 Project Investment Costs

An investment budget for project is approximately 80,751.35 Million Baht (price at year 2015) as shown in Table:

Description Investment Cost(Million Baht)

Land Acquisition 7,395.42Construction 72,137.93Construction Supervisor 1,062.00Detailed Design 156.00Total 80,751.35

4.9 The Economic Feasibility StudyThe results of economics study indexes shows that the project will be worthwhile economically with the following details:

- 12 -

- Net Present Value (NPV) in year 2017 = 28,109 Million Baht (at the discount rate of 12%)

- Economic Internal Rate of Return (EIRR) = 17.64%

- Benefit Cost Ratio (B/C) = 1.675. Scopes of Investment

The private sector who has been appointed by the EXAT as a concessionaire of Chalongrat-Nakhon Nayok-Saraburi Expressway Project is obliged to carry out the following scopes of project investment:

- 13 -

5.1 The private sector who committed to investment and operation project divided 2 phases as follows:Phase 1 Expressway Design and ConstructionThe concessionaire will be responsible for the design and construction costs of Chalongrat-Nakhon Nayok-Saraburi Expressway Project and making it complied with the concession agreement as well as providing installation of Mechanical and Electrical system, toll collection system, communication system, traffic control system and any other systems as considered necessary.Phase 2 Expressway Operations and MaintenanceThe concessionaire will be responsible for the operation cost of the expressway so that it can render service to public in an effective way with safety according to the international standard. Also, the expressway can be maintained in good condition throughout the concession period of the project.

5.2 The government will support for land acquisition costThe construction of expressway project will be supported land acquisition cost by government. While the EXAT will assist in coordinating with government sectors as well as giving all the possible supports to the investor. So, it can be provided with maximum benefits according to the law of investment promotion.

5.3 Concession PeriodThe concession period of this project is 30 years from the beginning construction. The concession

- 14 -

holder obtains the right to receive the toll revenues generated from Chalongrat-Nakhon Nayok-Saraburi Expressway Project and will have to pay a portion of the toll revenues to the government as mutually agreed in the concession agreement.

5.4 Project Operation LawChalongrat-Nakhon Nayok-Saraburi Expressway Project, Chonburi Province will be according to the Private Investment in State Undertakings Policy Committee Act, B.E. 2556, the EXAT Act, B.E. 2550 and all the concerned rules.

6. Private Partner Selection CriteriaA selection of the private partner for Chalongrat-Nakhon Nayok-Saraburi Expressway Project will follow the Public Private Partnership Act, B.E. 2556 while a Selection Committee will be nominated by the EXAT to set up initial selection criteria, as followed:

- 15 -

6.1 Qualifications of the InvestorThe concession holder must possess business management skill and a good financial status. He/she should has experiences and records of the design–construction, project management as well as operation and maintenance of the expressways. in addition, the concession holder will not have the characteristic as State Enterprise Policy Office (SEPO)’s Announcement subject “The Characteristic of Private that Cannot Investment in State Affairs and Person that should not be Appointed as a Consultant B.E. 2557 (2014).

6.2 Proposal PreparationThe interesting private partners will prepare proposals in accordance with the requirements stipulated in the proposal preparation documentation, arranged by the Selection Committee of Chalongrat-Nakhon Nayok-Saraburi Expressway Project, Chonburi Province. The proposals private partner must follow order no. 5 of State Enterprise Policy Office (SEPO)’s Announcement subject “Detail of Letter of Invitation, Term of Reference, Invitation Method, Selection Methods and Design of Bid Collateral and Agreements Collateral”.

6.3 Private Partner Selection Process for Build-Transfer-Operate (BTO) ConcessionThis is a concession given to private partner to operate the expressway which will be in compliance with the Public Private Partnership Act, B.E. 2556, the Expressway Authority of Thailand Act, B.E. 2550 and State Enterprise Policy Office (SEPO)’s Announcement, subject

- 16 -

“Detail of Letter of Invitation, Term of Reference, Invitation Method, Selection Methods and Design of Bid Collateral and Agreements Collateral”.

7. Procedure in Market SoundingThe questionnaire responders are kindly requested to fill in their ideas or suggestions. The questionnaire needs to be returned from March 18th-31th 2016, between 8.30 a.m. to 4.30 p.m.

Send E-mail to off_infor@exat.co.th (Subject: Market Sounding for Chalongrat-Nakhon Nayok-Saraburi expressway project)

- 17 -

Or the following address, The Governor of the Expressway Authority of Thailand,Expressway Authority of Thailand,2380 Phahonyothin Road, Senanikom, Chatuchak,Bangkok 10900.With a word on the envelop corner “(Market Sounding)”,

Or Fax Number 0 2940 1223.

For more information, please contact Tel. 0 2579 5380-9 Ext. 2863 or 1862.

The EXAT will not disclose the information received to any third parties or for other unrelated purposes. The EXAT will neither be responsible for the expenses incurred from questionnaire responses nor committed to taking actions according to the suggestions or information provided by the responders.

- 18 -

8. Questions8.1 What form of investments are you interested

in?___________________________________________________________________________________________________________________________________________________________________________________________________

8.2 Are you in interested in the investment of Chalongrat-Nakhon Nayok-Saraburi Expressway Project? Please specify the scope of your investment that you are interested in.

As a company that operates and maintains an expressway

As a private sector As a financial institution Others; please specify

___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

- 19 -

8.3 Considering allocation of project funding, do you have any suggestions, opinions, or requests for financial supports from the government?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

- 20 -

8.4 As Thai government is responsible for providing land and cooperating with agencies, do you have suggestions and/or opinions in order to implement this project efficiently?______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8.5 As Chalongrat-Nakhon Nayok-Saraburi Expressway Project is a megaproject which requires tremendous amount of investment, do you have any suggestions and/or opinions in order to implement this project efficiently?________________________________________________________________________________________________________________________________________________________________________________________

- 21 -

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

- 22 -

8.6 Considering operation and maintenance of the project, do you have any suggestions, opinions, and/or requests for financial supports from the government?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8.7 As this project shall follow Build-Transfer-Operate (BTO), do you have any suggestions and/or opinions concerning reasonable financial return to the Thai government and private sector?___________________________________________________________________________________________________________________________________________

- 23 -

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

- 24 -

8.8 As Chalongrat-Nakhon Nayok-Saraburi Expressway Project is a megaproject, in order to implement this project efficiently, do you think you should be offered some supports from the government? If yes, please specify:1)Privilege Tax2)Co-operations & supports from government agencies3)Public concerns4)Others____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

- 25 -

____________________________________________________________________________________________________________________________________

- 26 -

8.9 Do you have any opinions and/or suggestions on the implementation plan of Chalongrat-Nakhon Nayok-Saraburi Expressway Project?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8.10 Other suggestions________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

- 27 -

9. Contact Details

Contact NamePosition

::

Company Name

:

Company Address

::

Telephone Number

:

Fax Number :E-mail Address

: