The meeting, attended by the Transport Minister, Jarupong Rungsuwan, assessed projects across the southern provinces.
On Phuket, the tunnel will probably include a tollway along the 3.8 kilometre route to recoup the six billion baht outlay.
One billion baht of that will be spent on compulsory purchases of the land involved, the meeting heard.
Patong Mayor Pian Keesin reckons that 34,000 vehicles currently go across the hill both ways. he believes a tunnel will be a much safer option.
Motorcycles are likely to have their own ''tunnel'' under the project, separated from larger vehicles.
The tunnel would also provide an alternative escape route in a tsunami alert, the meeting heard.
There's no budget as yet for the rail or light rail link planned between Surat Thani and Phang Nga-Phuket.
Still being looked at is the Andaman Sea-Gulf of Thailand land bridge, which will ultimately link both Thai coasts along 142 kilometres at a cost of 42,782 million baht over five to seven years.