Mr. Surapong Laoha-Unya, Executive Director and Chief Officer of MOVE Business, BTS Group Holdings Public Company Limited (SET: BTS), revealed to Kaohoon that U-Tapao International Aviation Company Limited (UTA) (A company that Bangkok Airways Public Limited Company (SET: BA) hold 45% of its share, followed by BTS at 35%, and Stecon Group Public Limited Company (SET: STECON) at 20%) would receive Notice to Proceed (NTP) on U-Tapao Airport and Eastern Aviation City Development project, worth approximately 200 billion baht after the high-speed rail project that connect three airports (Don Mueang – Suvarnabhumi – U-Tapao) start constructing this April.
Mr. Surapong stated, “Now, they need to come and discuss the high-speed rail project with us. The latest news states that the high-speed rail will start construction this April. Therefore, EEC should send NTP on the U-Tapao Airport Aviation City project afterward.
The UTA group is preparing to invest in this project and is now negotiating with real estate groups both domestically and internationally that will start investing once the company receives NTP. Initially, the Internal Rate of Return (IRR) of the U-Tapao Airport Aviation City project is estimated at 10-11% due to the income from non-aero business (duty-free) and the aviation industry that includes the aviation city. This aviation city has an income from rental fees, which will reach break-even points within 10 years from its 50-year contract.
Currently, UTA has completed its design of the main work, such as the passenger terminal and the taxiway. This construction is expected to use the budget of 30-40 billion baht. The next phase will be the construction of an aviation city, which is expected to use a budget of 100 billion baht.
Previously, Mr. Puttipong Prasarttong-Osoth, CEO of BA stated that the first phase of the U-Tapao Airport Aviation City project will be to complete the passenger terminal according to the contract, which is expected to take 3 years and cost 40 billion baht. However, it is also forecast that once completed, it will generate revenue of around 4-5 billion baht per year. 40% of this revenue will come from commercial rental space, while the remaining revenue will come from aircraft parking fees.
The U-Tapao Airport Development project will be divided into six phases. The first phase will accommodate 12 million passengers, and the second phase, which will start in 2027, will support 15.9 million passengers. The third phase will accommodate 22.5 million passengers, followed by the fourth phase which starts in 2034 to support 30 million passengers. The fifth phase will start in 2047 and handle 45 million passengers. As for the final phase, it will begin in 2060 and support 60 million passengers.
