In Partnership with Republic of Korea Ministry of Strategy and Finance

Unified Framework for Feasibility Assessment: Identifying/Screening Projects for PPP Implementation in the Republic of Korea

The Republic of Korea has a long history of PPP. Its early experience consisted of individual legislation for specific projects. In 1994, the government began to formalize its process with the passing of the Act for the Promotion of Private Capital Investment in Social Overhead Capital, which provided the legal framework for the broader use of PPP. The legislation was revised in 1999 to produce the Act for Public-Private Partnerships in Infrastructure, which provided for the establishment of a PPP unit. The Korea Development Institute’s Public and Private Investment Management Center (PIMAC) currently serves as Korea’s PPP unit. From 1994 to 2015, the country implemented 684 PPP projects.

PIMAC is authorized to conduct prefeasibility studies for publicly financed projects with a total project cost of at least W50 billion, where W30 billion or more is subsidized by the State. Under the PPP legal and institutional framework, PIMAC screens and appraises PPP projects during the selection process. Solicited projects costing W200 billion or more for build-transfer-operate projects, or at least W100 billion for build-transfer-lease projects, and all unsolicited proposals are subject to analysis by PIMAC.

In Korea, potential PPP projects are identified by line ministries, or the private sector in the case of unsolicited proposals. As part of the feasibility assessment, projects (publicly financed and PPP) are subject to the Analytic Hierarchy Process, which includes economic, policy, and balanced regional development analyses. Following this process, projects go through project appraisal, where qualitative and quantitative (including value-for-money) analyses occur. If a project successfully completes this process, PIMAC will recommend it for procurement as a PPP.

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About the Presenters

Hyeyoung Kim

Hyeyoung (Speaker) is a Principal Policy Advisor for the Global Infrastructure Hub on secondment from the Republic of Korea. She has profound knowledge and practical experience of PPP in the field of legal and contractual frameworks as well as PPP projects selection process, acquired from her practice at Korea Development Institute Public and Private Infrastructure Investment Management Centre (KDI PIMAC). She has worked as an adviser to a public sector and independent committee on legal, regulatory, and contractual issues covering setting up PPP frameworks to settle a dispute between the public and private sectors. Prior to working at KDI PIMAC, Hyeyoung worked as a lawyer at a private law firm, handling various legal issues. She has an LLB from Seoul National University and an LLM from the University of Illinois at Urbana-Champaign.

Morag Baird

Morag Baird joined the Global Infrastructure Hub on secondment from the U.K. Department of International Development (DFID). She is a senior infrastructure adviser with more than 25 years of experience working on infrastructure issues at the policy and project levels, including work based in DFID in Bangladesh, Central Asia, Ethiopia, and Sierra Leone, as well as the United Kingdom. Prior to joining the Global Infrastructure Hub, Morag worked at the European Investment Bank, focusing on Africa strategy, blended finance, infrastructure project preparation facilities, and results measurement.

Morag is a chartered civil engineer with expertise spanning the main infrastructure sectors, especially energy, water, and transport. She has an MA in Engineering from Cambridge University.

Rob Richards

Rob Richards is a PPP & Infrastructure Consultant for the World Bank Group’s PPP Cross-Cutting Solution Area (CCSA). Currently he is collaborating on the development of a PPP screening tool to facilitate governments in better identifying potential PPP projects. Rob has reviewed more than 20 PPP unit identification and screening tools and methodologies. He is leading a webinar series on the same subject matter. He also works with the Public Private Infrastructure Advisory Facility on database improvement/management, and has worked on the PPP CCSA comments team, Private Participation in Infrastructure Database, and an internal PPP tagging exercise.

Rob has a BA in Political Science and History from the University of Florida and an MS in Applied Economics from Johns Hopkins University.

Questions Submitted

Dr. Illakkuvan

Submitted 5:43 am, December 10, 2016

Successfully completes this process, PIMAC will recommend it for procurement as a PPP! Wonderfull!!

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