Macquarie Korea Infrastructure Fund

Baekyang Tunnel

Assets

Baekyang Tunnel

Inner City tunnel connecting central business district to northwestern region of Busan, the second largest city in Korea.

Asset overview

Baekyang Tunnel is a 2.3 km dual two-lane toll tunnel that runs underneath Baekyang Mountain in Busan, providing a link from the central business district to Busan port and the northwestern residential areas, including Kimhae International Airport. The tunnel is an important part of the major expressway routes connecting Busan port to the northwestern residential regions of Busan, such as Namhae Expressway, Yangsan-Soba Expressway, and New Daegu-Busan Expressway. Construction of the Baekyang Tunnel began in July 1993 and was completed in January 1998. The tunnel began operation in January 2000.


Investment details

MKIF has invested in Baekyang Tunnel Ltd. (“BYTL”), the concessionaire of Baekyang Tunnel. As of the record date, MKIF is a 100.0% shareholder of BYTL, and MKIF’s total investment amount is KRW 2.2 billion (equity KRW 1.2 billion and senior loan KRW 1.0 billion).

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Business overview 
Government authorityBusan Metropolitan City
Concession term25 years
Guarantee duration25 years
Concession term commencementJanuary 2000
Minimum Guarantee90% of annual CA projected revenue
Revenue Cap110% of annual CA projected revenue
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Asset overview 
Length2.3 km
CapacityDual two-lane in both directions

Asset location