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SsangYong picked as preferred negotiating partner for a project to construct dual track electric railway between Iksan and Shinri on Jeolla Line
2006-10-27
A consortium including SsanugYong E&C was chosen on October 27 as the preferred negotiating partner for a private investment project to construct a dual track electric railway between the Iksan-Shinri section of the Jeolla Line. The project is led by the Ministry of Construction and Transportation.
The BTL (Build-Transfer-Lease) project, which will cost a total of KRW 427.7 billion (SsangYong holding 18 percent stake, or KRW 77 billion), entails removing the existing railway and constructing a dual track electric railway extending 34.1 km between Daejangchon-ri in Iksan and Hashin-ri, Sanggwan-myeon, Wanjoo-gun, in North Jeolla Province. The project will take 54 months from July 2007 to December 2011 to complete, and the consortium will operate the railway for 20 years from January 2012 to December 2031.
The project is the first BTL-based private investment in which Ssangyong has participated. Unlike in BTO, in which investors redeem their investment by operating public facilities and collecting fees after the completion of a project, investors in BTL investment lease public facilities to government agencies after completion, and redeem investment (construction costs) through regular rent installments, which ensures stability and security in business.