France’s Vinci-GTM is leading a group of international firms that have signed an agreement to develop an ambitious US$1.7BN tunnel and bridge scheme linking Pusan and Koji island on the southern tip of South Korea.
According to a memorandum of understanding signed by the Vinci group at the end of October, plans call for the construction of a 3.7 km long tunnel, two 3.5km long bridges and a 1km length of approach road.
Vinci will hold 40 per cent, while of the other partners in the venture, Hong Kong’s Cheung Kong Infrastructure (CKI) will have 33 per cent and South Korea’s Daewoo Construction group 27 per cent. CKI is owned by Li Ka-shing, one of Asia’s richest men.
The local governments in Pusan and Kyongnam local governments are also involved, but in a limited capacity.
A CKI spokeswoman said: "In view of the progress of the negotiations, details of the agreement are expected to be finalised in the next few months." The development partners has estimated that it will take six years to build the complete network of tunnels and bridges linking the mainland with Koji. Once complete, the consortium have been given a 40 year concession to operate and maintain the facility.
The Seoul government has agreed to provide $500M towards the cost of the project, while also guaranteeing revenues.
