May 2, 2019 - Mr. Sutthisak Wattanawinit, acting governor of the Expressway Authority of Thailand (EXAT), revealed the progress of the Rama 3-Daokanong expressway project, which has a budget of 30 billion baht and is part of the Thailand Future Fund (TFF) plan. Currently, the selection committee for private partners has not opened bidding and is reviewing the list of private entities since the proposal submission deadline at the end of April. Having just taken office, he has not yet had the opportunity to familiarize himself with the details.

          However, he believes that this will not undermine investor confidence in the TFF, as EXAT has clearly communicated to shareholders that the fund will be used to invest in expressway construction in line with its objectives, amounting to 45 billion baht. As for how many expressways will be constructed, he is not yet certain and will wait for a summary.

          Mr. Sutthisak further stated that the construction project for the Northern Phase 1 of the Expressway Stage 3, from Kaset Intersection to Outer Ring Road, with a budget of 15 billion baht, is currently preparing information to present to the Cabinet. If the project is approved, it will then be submitted to the court to request the reclamation of land along the construction area on Kaset-Nawamin Road, which includes private night markets, shopping malls, and famous restaurants.

          Meanwhile, regarding the lawsuit against the corner market that has ceased operations in the area but has not paid rent to the government, they are still waiting for the court to call for a hearing. However, EXAT continues to pursue a lawsuit for damages amounting to 50 million baht. The National Economic and Social Development Council (NESDC) has ordered a delay on the new road or bypass project, with a budget of 200 million baht, at the intersection with Prasertmanukij Road (Kaset-Nawamin) and Praditmanutham Road (the road along the Chalong Rat Expressway, Ram Inthra-Ajarnrong Expressway) to address traffic congestion issues during peak hours, as they want construction to proceed alongside the N2 expressway.

          EXAT's report indicates that the TFF or TFFIF fund remains stable in investor confidence. The latest unit price has increased by 11%, currently at 11.10 baht per unit, up from the subscription price of 10 baht in October last year (2018). Therefore, it presents an investment opportunity for the public and may grow further when positive signals are received from the expressway projects, such as the Rama 3-Daokanong expressway and the N2 northern expressway, once construction begins.

          In the case of the lawsuit against private entities encroaching on the area, EXAT has sued the private company, Neck Entertainment Co., Ltd., for breach of contract regarding the corner market service, even though the contract was terminated two years ago. It was later discovered that they were still collecting rent from small vendors, leading to a claim for damages exceeding 50 million baht. The relatively low amount of the damage claim compared to the annual rent stipulated in the contract of 18 million baht per year is in accordance with the organization's regulations and the binding conditions specified in the contract. Once the court issues a final ruling, they will proceed to reclaim the area and dismantle the structures immediately.

 

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