Infrastructure Finance: The Sydney Cross City Tunnel Case Solution

This case explores the events surrounding the development of the Cross City Tunnel in Sydney, a project of innovative infrastructure developed by the government of New South Wales in Australia, in collaboration with Cheung Kong Infrastructure, the investment arm of Hong Kong Cheung infrastructure Kong. The tunnel was opened to traffic in 2005. This case examines three issues: the political and institutional context that led to the decision to develop the tunnel between cities, general economic assumptions on which the company was based, and methods of financing construction projects-operate-transfer created to develop tunnel and the finance company. The case explains how to finance the project around a typical road transport infrastructure seems to have failed, and raises questions about demand estimates for the tunnel and terms of traffic management around the entrance to the tunnel.
Frederik Pretorius,
Maria Ho
Source: University of Hong Kong
38 pages.
Date Posted: January 11, 2008. Prod #: HKU691-PDF-ENG
Infrastructure Financing: The solution to the case of Sydney Cross City Tunnel

Infrastructure Finance: The Sydney Cross City Tunnel Case Solution
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