Infrastructure Funds
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1. Infrastructure Fund: Introduction
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- Investments in SPC(Special Purpose Company) established for SOC equity or debt investment
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- Infrastructure fund structure : Both investment trust type and investment company type are possible
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- Fund maturity can exceed 20 years, a period long enough to service the infrastructure project’s business
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- Various types of Infrastructure investments : BTO (Build-Transfer-Operate), BOT (Build-Own-Transfer), BOO (Build-Own-Operate) and BTL (Build-Transfer-Lease)
2. Infrastructure Fund Operation Chart
3. SOC (Social Overhead Capital) Development
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- Typical SOC developments are implemented through BTO (Build-Transfer-Operate) or BTL (Build-Transfer-Lease)
Item |
BTO |
BTL |
Facility |
Facilities in which service charges are being collected from end-users (roads, ports, parking lots, etc) |
Facilities in which service charges could not be collected from end-users (schools, libraries, telecommunications facilities, etc) |
Recovery of Investment |
Service charges paid by end-users |
Lease paid by government |
Investment Risk |
Borne by private investors |
Borne by goverment |