This case is the event associated with the development of Sydney Cross Tunnel, innovative infrastructure project developed by the government of New South Wales in Australia in conjunction with infrastructure Cheung Kong, Cheung in Hong Kong infrastructure investment arm. The tunnel opened to traffic in 2005. This case examines three issues: the political and institutional background, which led to the decision to develop the Cross City Tunnel, the general economic assumptions on which the company was founded, and a build-operate-transfer project financing mechanisms put in place for the development and financing of the tunnel company. The case explains the mechanisms surrounding a typical project finance road infrastructure, which seems to have failed, and raises questions about the assessment of demand for the tunnel and traffic management arrangements for access to the tunnel. "Hide
by Frederik Pretorius, Maria Ho Source: University of Hong Kong, 38 pages. Publication Date: January 11, 2008. Prod. #: HKU691-PDF-ENG
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