Inner City tunnel connecting central business district to northwestern region of Busan, the second largest city in Korea
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, in the form of equity and senior loans. As of record date, MKIF has 100% of the equity, and has committed to provide KRW 1.3 billion senior debt to BYTL. MKIF’s total invested capital in BYTL is KRW 2.5 billion.
|Government authority:||Busan Metropolitan City|
|Concession term:||25 years|
|Guarantee duration:||25 years|
|Concession term commencement:||January 2000|
|Minimum Guarantee:||90% of annual CA projected revenue|
|Revenue Cap:||110% of annual CA projected revenue|
|Capacity:||Dual two-lane in both directions|