Macquarie Korea Infrastructure Fund
Assets
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.
MKIF has invested in Baekyang Tunnel Ltd. (“BYTL”), the concessionaire of Baekyang Tunnel. BYTL Ltd. has undertaken its corporate dissolution process in accordance with the Commercial Act of Korea, and BYTL Ltd. will continue servicing its lenders, MKIF and the ABS SPC, until its dissolution. Also, the ABS SPC will distribute all residual cash flows to MKIF via dividends and complete its own dissolution process in accordance with the Commercial Act of Korea.
| Business overview | |
| Government authority | Busan Metropolitan City |
| Concession term | 25 years |
| Guarantee duration | 25 years |
| Concession term commencement | January 2000 - January 2025 (Expiration of concession) |
| Minimum Guarantee | 90% of annual CA projected revenue |
| Revenue Cap | 110% of annual CA projected revenue |
| Asset overview | |
| Length | 2.3 km |
| Capacity | Dual two-lane in both directions |
