Machang Bridge

 

A grand bay bridge directly connecting the cities of Masan and Changwon

Asset overview

Construction of the 1.7 km, dual two-lane, cable-stayed Machang Bridge commenced in April 2004 and completed in 2008. The bridge provides a vital link across Masan Bay and alleviates severe traffic congestion in the cities of Masan and Changwon as an alternative route between Korea’s two southern provinces, Jeollanam-do and Gyeongsangnam-do.

Investment details

MKIF has invested in MCB Co., Ltd. (“MCB”), the concessionaire of Machang Bridge, in the form of equity and subordinated loan. As of the record date, MKIF has 70% of equity interest in MCB, and MKIF’s total investment amount is KRW 112.8 billion, which is comprised of equity of KRW 33.8 billion and subordinated loan of KRW 79.0 billion.

Concession agreement

Concession agreement
Government authority: Gyeongsang Namdo Government
Concession term: 30 years
Guarantee duration: 30 years
Concession term commencement: July 2008
Minimum Guarantee: 75.78% of annual CA projected revenue
Revenue Cap*: 100% of annual CA projected revenue

* 50:50 revenue sharing with the relevant authority in excess of expected revenue at 100% level

Facilities

Facilities
Length: 1.7 km
Capacity: Dual two-lane in both directions