Macquarie Korea, an offshoot of Australia’s Macquarie Bank, has bought the operating concession for a 2.33km road tunnel being built in Pusan, South Korea.
Under the deal, Macquarie Korea is paying contractors Ssangyong Construction and Bando Construction 93.7 billion won (US$71.4M) to cover the construction cost of the Soojungsan tunnel. In return, the Australian company will be given the 24-year operating franchise which starts after the tunnel opens to traffic, probably in November.
Work on the two-lane tunnel started in 1997. It will link an expressway running through the port city to the Kyungby/Namahe expressway.
Ssangyong and Bando had earlier set up the Soojungsan Tunnel Company as the tunnel operating organisation under their franchise with the Pusan city officials.
The deal also freed Pusan city government from the need to provide payment guarantees for 73 billion won to the Soojungsan Tunnel Company.
