Incheon Airport Bridge Underway
Thursday, February 16, 2006
by
The Incheon Bridge will link Incheon International Airport and the international business district of New Songdo City (second bridge crossing). It started construction in June 2005. When the bridge is completed in 2009 (52 months) it will be longer than the current Seohae Bridge (the first bridge crossing) and will be among the five longest bridges of its kind in the world.
The bridge will be a 12.3km (7.4-mile) toll bridge that will link the Seoul-Incheon expressway with the Seohaean expressway, to shorten the journey time from Incheon airport to the metropolitan districts of Seoul by 40 minutes. The bridge is expected to cost over $1.4 billion (KRW1.25 trillion) but is expected to stimulate economic development by improving logistics for Northeast Asia.
MANAGEMENT, CONSTRUCTION AND FINANCE
KODA Development, a joint venture between UK-based AMEC and the city of Incheon, will finance and manage the project, while Samsung Joint Venture, a group of seven domestic builders, will take charge of the design and construction. Samsung Engineering and Construction, Daelim, Daewoo, Hanjin, Hanwha, Kumho and GS are partners in the group. Structural engineering services are being provided by Chodai Co. Ltd, Seo Yeong and Hyundai Engineering and Construction.
Buckland and Taylor Ltd were responsible for developing the basic bridge design, providing support to KODA in securing construction bids and providing technical due diligence services for the banks financing the project. Allianz Global Risks UK is the leading insurer for the project, providing all risks; delay in start-up and third party liability retrocession insurance cover. The company will also provide risk-consulting services on-site. Other companies involved in the bridge insurance include the Korean Reinsurance Company and the direct insurers Samsung Fire and Marine, while the broker is Aon Ltd of London.
Once the construction is completed, KODA Development will manage the bridge for 30 years and later return the facility to the Korean government. AMEC will become the first foreign investor to lead a major Public Private Partnership (PPP) project in South Korea. They will have an initial contract for seven years to operate and maintain the bridge in addition to a return on its investment. AMEC's equity investment will total $38 million (£21 million), representing a 23% interest in KODA Development.
AMEC's initial contribution has funded the initial design and building works on the bridge. The remaining equity and debt is being provided by a consortium of Korean Banks led by Kookmin Bank and IBK of Korea and also the Incheon Bridge Investment Company, which is owned by Macquarie Bank of Australia (AU$ 86 million) and will hold a 41% interest in KODA and debt of AU$354 million.