SK E&C said that the consortium of contractors and financiers has signed an agreement with Transport for London (Tfl) to implement construction as well as an agreement with domestic and foreign financial institutions to finance the deal that covers a twin-bore tunnel roughly 1.4 km long linking the Greenwich Peninsula and the Royal Dock, just east of the Canary Wharf.
"This is the first public-private partnership pushed by a Korean construction company in Western Europe," the builder said in a statement, adding Korea Trade Insurance Corp. (K-Sure) and the Export-Import Bank of Korea would provide financial support worth about 800 billion won ($680 million).
In May, Tfl selected Riverlinx as preferred bidder to design, build, finance, operate and maintain the Silvertown tunnel. Construction and maintenance costs will be covered via a user charge. The consortium will maintain the tunnel for 25 years. The project would significantly reduce congestion in and around the 122-year-old Blackwall tunnel.
"Against the backdrop of Britain's excellent financial market, we have concluded financial arrangements early on thanks to aggressive infrastructure investment and financing support by South Korean export credit institutions," SK E&C CEO Ahn Jae-hyun was quoted as saying. "We will do our best to create another model of success as a global developer."
The consortium also includes Cintra, a unit of Span's Ferrovial Agroman, Netherlands-based BAM PPP and financiers such as Aberdeen Standard Investments and Macquarie Capital.
"A breakthrough has been made to win investment development projects in advanced countries by Korean companies that have been struggling with fierce competition due to financial support for the project, said K-Sure president Lee In-ho. "In the future, we will actively support projects in advanced countries to gain an upper hand and open the way for overseas projects."