Alternative Investment Scheme for Don Muang Tollway Extension Project

Journal article

Authors/Editors

AMPOL KAROONSOONTAWONG

Strategic Research Themes

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Publication Details

Author list: Thanawat Mongkolchoo;Thanawat Mongkolchoo;Kitti Subprasom;Ampol Karoonsoontawong;Sorada Saowalakaksorn

Publication year: 2019

Journal: KMUTT Research and Development Journal (0125-278X)

Volume number: 42

Issue number: 2

Start page: 177

End page: 198

ISSN: 0125-278X

URL: https://digital.lib.kmutt.ac.th/journal/brows1.php?V_ID=37&N_ID=115

Abstract

Sources of investment fund for transportation infrastructure development at the present time include annual government budget, loan, investment of turn-key pattern, toll fee account, Thailand Future Fund, and that from Public- Private-Partnership scheme (PPP). This research was conducted to investigate the potential of the PPP investment pattern for highway development, with emphasis on the extension part of the Elevated Utraphimuk. This was done by analyzing the suitability of fundamental financial analysis. It was found from the study that if the public sector does not support the construction cost, the financial internal rate of return (FIRR) would be only 3.21 % for the 30-year project concession period (base case). This indicated no financial viability of the project. Therefore, the public sector must subsidize some parts of the construction cost to persuade the private sector to participate in the project. This would in turn result in increased FIRR. One of the interesting investment patterns is that the public sector invests in all construction costs of civil work while the private sector takes part in the project concession in terms of operation and maintenance work. Such O&M-PPP-Net-Cost pattern (sharing income between private and public sector at the proportion of 100:0) would yield FIRR of 36.08 %, while O&M-PPP-Gross-Cost pattern (sharing income between private and public sector at the proportion of 50:50) would result in FIRR of 18.22 %.

Keywords

การพัฒนาทางหลวง, การร่วมทุนระหว่างภาครัฐและเอกชน, รูปแบบการลงทุน, แหล่งเงินทุน