Macquarie Korea Infrastructure Fund

Cheonan-Nonsan Expressway


Cheonan-Nonsan Expressway

The largest private toll road connecting Cheonan and Nonsan in mid-western part of Korea.

Asset overview

The Cheonan-Nonsan Expressway is an 81.0 km, dual two-lane toll expressway between Cheonan and Nonsan, connecting the northwestern and southwestern provinces of Korea as part of the national highway system. It has two major tunnels, 44 bridges and seven interchanges. Construction of Cheonan-Nonsan Expressway began in December 1997 and was completed and tolling operation commenced in December 2002.

Investment details

MKIF has invested in Cheonan-Nonsan Expressway Co., Ltd. (“CNEC”), the concessionaire of Cheonan Nonsan Expressway. As of the record date, MKIF is a 60.0% shareholder of CNEC, and MKIF’s total investment amount is KRW 270.1 billion (equity KRW 87.8 billion and subordinated loan KRW 182.3 billion).

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Concession agreement  
Government authority Ministry of Land, Infrastructure and Transport
Concession term 30 years
Guarantee duration 20 years
Concession term commencement December 2002
Minimum Guarantee 82% of annual CA projected revenue
Revenue Cap 110% of annual CA projected revenue

*Partial revenue sharing in excess of 82% to 110% level

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Length 81.0 km
Capacity Dual two-lane in both directions

Asset location