Democrats drive opposition to Don Mueang Toll extension

[snoop1130]

 

The Democrat Party has strongly opposed Transport Minister Suriya Jungrungreangkit’s proposal to extend the concession of the Don Mueang Tollway operator by 30 years in exchange for lowering the fare to 50 baht.

 

This 21-kilometre expressway connects Bangkok’s Din Daeng area to the National Memorial in Lam Luk Ka district, Pathum Thani.

 

The proposal emerged following the concessionaire’s plan to increase the fare by five to 10 baht per section on December 22, raising the rate from 80 to 90 baht for the Din Daeng to Don Mueang section and from 35 to 40 baht for the Don Muang to National Memorial section.

 

Suriya reportedly argued that extending the concession would alleviate the government’s financial burden, which would otherwise have to compensate for the reduced revenues due to the lower toll.

 

Charnchai Issarasenarak, a former Democrat MP for Nakhon Nayok, criticised the proposal, stating it is poorly thought out since the concession expires in 2034, at which point the tollway will be transferred to the state.

 

“After that, motorists can use the expressway free of charge. If the concession is extended, the operator will continue collecting money for another 30 years.”

 

 

Samart Ratchapolsitte, a former Deputy Bangkok Governor, expressed his concerns on Facebook, noting that state agencies typically negotiate with expressway operators to delay toll increases to ease the cost of living. He argued that the minister’s plan does not serve the public’s best interests.

 

Samart wrote that the concession extension would benefit motorists but it means that the state cannot intervene in setting toll fares during the extended concession period. If the expressway is transferred to the state after the concession ends, the state will have the freedom to lower fares.

 

According to the operator, the planned toll hikes align with the adjustments allowed every five years under the concession deal, potentially increasing the toll from 130 baht per trip to 145 baht per trip before the concession ends.

 

Originally, the tollway operation was set to transfer to the state in 2014 under a 25-year contract. However, between 2005 and 2006, the operator claimed financial losses due to the government not approving a fare hike and reduced traffic following the opening of Suvarnabhumi Airport.

 

This dispute led to negotiations between the operator and the Highway Department, resulting in the operator being granted an additional 27 years to run the expressway and permission to increase fares as specified in the agreement, reported Bangkok Post.

 

By Sarishti Arora

Picture courtesy of don mueang tollway wikepedia page

 

Full story: The Thaiger 2024-07-23

 

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[hotchilli]

14 hours ago, snoop1130 said:

He argued that the minister’s plan does not serve the public’s best interests.

Does it ever?

[john donson]

someone would become even more filthy rich

 

was it the idea there would be NO TOLL way fee as the country would own it ?

[BangkokHank]

I first came to Thailand in 1995 to work on this project. (I was the guy who made the cash flow and IRR projections for the various toll rate and concession length scenarios.) Basically, the Thai government agreed to certain conditions in order to get the Tollway built. Then, after it was built, they reneged on their end of the bargain - to the significant detriment of the investors. (Granted, some of the conditions demanded by the investors were quite unrealistic and the investors should have known that they would not be able to be implemented.) Anyway, private investors don't build tollways just for the fun of it. They expect to make a reasonable return on their investment. And if they can't raise the toll rate according to the agreement, the other option is to lengthen the concession.

[natway09]

The Transport Minister has become a very rich man all of a sudden.

This decision to extend by 27 years is ridiculous & should see him accountable.

It is highway robbery,,,,,,,,,,sorry

[MartinBangkok]

9 hours ago, BangkokHank said:

I first came to Thailand in 1995 to work on this project. (I was the guy who made the cash flow and IRR projections for the various toll rate and concession length scenarios.) Basically, the Thai government agreed to certain conditions in order to get the Tollway built. Then, after it was built, they reneged on their end of the bargain - to the significant detriment of the investors. (Granted, some of the conditions demanded by the investors were quite unrealistic and the investors should have known that they would not be able to be implemented.) Anyway, private investors don't build tollways just for the fun of it. They expect to make a reasonable return on their investment. And if they can't raise the toll rate according to the agreement, the other option is to lengthen the concession.

@BangkokHank, you obviously didn't stay long enough time in Thailand.

 

What's happening know is a "brown envelope"-arrangement to make corrupt individuals rich on a motorway that should have been free for the public already (barring maintenance costs perhaps)

Edited July 24 by MartinBangkok
spelling

[mogandave]

The roads are good and the tolls seem pretty reasonable to me. 

 

If there were no toll, the road would be packed with every POC that moves, and the road would be cr*p inside of two years.