BEM Points to Make a Run as the Cabinet Extends the Concession for 15.8 Years

On February 18, 2020, the Cabinet had approved the resolution to extend the concession for Bangkok Expressway and Metro Public Company Limited (BEM) to operate Sirat Expressway and Bang Pa-in – Pak Kret Expressway in exchange of ending the dispute between Expressway Authority of Thailand (EXAT) and BEM with a value of lawsuit worth 58,873 million baht.

 

The agreement will exclude a new construction of a double deck worth 32 billion baht, while all concessions will be extended to October 31, 2035, as follows;

1) Sirat Expressway section A, B and C to be extended by 15 years and 8 months to October 31, 2035.

2) Sirat Expressway section D to be extended by 8 years and 6 months to October 31, 2035.

3) Udon Ratthaya Expressway (C+) to be extended by 9 years and 1 months to October 31, 2035.

 

The revenue sharing will be allocated, using the same ratio as before. For Sirat Expressway section A and B, EXAT will take 60% while BEM will book 40%. However, BEM will fully recognize the revenue for Sirat Expressway section C and D and C+, and will increase the toll once every 10 years by 10 baht.

In addition, BEM will exempt the collection of toll fare on public holidays which are around 20 days per annum or 300 days throughout the concession, which would reflect a loss around 10,000 million baht in revenue.