Infrastructure Funds

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1. Infrastructure Fund: Introduction

  • - Investments in SPC(Special Purpose Company) established for SOC equity or debt investment
  • - Infrastructure fund structure : Both investment trust type and investment company type are possible
  • - Fund maturity can exceed 20 years, a period long enough to service the infrastructure project’s business
  • - 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

  • - 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