Gyeonggi Province has set the toll for the 12.98-kilometer private Suwon-Uiwang Express Road, which is scheduled to open in June 2012, at 800 won. The private operator Gyeonggi Southern Roads Co., Ltd. will bear the entire project cost and assume operational management for 29 years after completion.
According to the province on the 17th, the existing four-lane local road No. 309 connecting Geumgok-dong in Suwon and Cheonggyae-dong in Uiwang will be expanded into a six to eight-lane expressway using 295.4 billion won in private investment. This road is a 100 percent private investment project in which the operator Gyeonggi Southern Roads Co., Ltd. bears the entire 98.6 billion won in compensation costs. The private investment project profit rate has been lowered from the existing 9 percent to 5.29 percent, which is 4-5 percent lower, maintaining the current toll of 800 won for passenger vehicles.
Additionally, the province will recover usage revenue when it exceeds 110 percent of estimated traffic volume without guaranteed operating income, and plans to use this for toll reductions and shortening of the operating period.
Once this road opens, the Suwon-Uiwang Express Road will connect with the Uiwang-Gwacheon Express Road currently operating as a toll road. Accordingly, vehicles using the newly expanded and opened Suwon-Uiwang road will be able to use the existing Uiwang-Gwacheon road without additional charges.
A province official said, "Travel time during rush hours is expected to be shortened from 40 minutes from Bongdam to Seoul's Umyeon Mountain Tunnel to 20 minutes, with a benefit-cost ratio of 2,300 won per vehicle, and an expected reduction in annual social loss costs of 54.2 billion won."
Meanwhile, the province plans to sign an implementation agreement with Gyeonggi Southern Roads Co., Ltd. on the 18th to construct the Suwon-Uiwang Express Road through a private investment method (BTO).
Loading comments…