Macquarie Korea Infrastructure Fund

Incheon International Airport Expressway


Incheon International Airport Expressway

Express link between Seoul and Incheon International Airport, Korea’s largest airport.

Asset overview

The Incheon International Airport Expressway is a 40.2 km, dual three-to four-lane expressway connecting Yeongjong Island, site of the Incheon International Airport, to Korea’s capital, Seoul. The Incheon International Airport Expressway is Korea’s first operational private infrastructure asset under the PPI Act. Construction began in December 1995 and was completed in December 2000. The Incheon International Airport Expressway includes two major bridges, the 4.4km Yeongjong Grand Bridge and the 2.56 km Banghwa Grand Bridge, as well as the 630-metre Gaehwa tunnel.

Investment details

MKIF has invested in New Airport Hiway Co., Ltd. (“NAHC”), the concessionaire of Incheon International Airport Expressway. As of the record date, MKIF is a 24.1% shareholder of NAHC, and MKIF’s total investment amount is KRW 75.3 billion (equity KRW 23.6 billion and subordinated loan KRW 51.7 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 January 2001
Minimum Guarantee 80% of annual CA projected revenue
Revenue Cap 110% of annual CA projected revenue

*Partial revenue sharing in excess of 80% to 110% level.

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Length 40.2 km
Capacity Dual three to four-lane in both directions

Asset location