KDI center roles and key activities.

PPP Procurement


Public-Private Partnership (PPP) projects refer to arrangements where the private sector constructs and operates infrastructure facilities in order to help provide and deliver public services on behalf of the government.

Capital and technological/managerial know-how from the private sector is utilized through PPPs for constructing and operating infrastructure facilities that the government has traditionally been in charge of (roads, railways, schools, sewage systems, etc.).

Throughout the project period, the government and the private sector cooperate on an ongoing basis to provide public services related to infrastructure facilities.

Role of PIMAC

Article 23 Paragraph 1 of the PPP Act stipulates the rationale for the establishment of PIMAC as follows: For comprehensive support of PPP as prescribed by the Presidential Decree, such as the review of Solicited Projects, analysis of project feasibility, and evaluation of the project proposals and other matters, the Public and Private Infrastructure Investment Management Center for Infrastructure Facilities is to be established within the Korea Development Institute established under the Act on the Establishment, Operation and Fosterage of Government-funded Research Institutions.

Article 20 Paragraph 1 of the Enforcement Decree of the PPP Act describes work of PIMAC as follows :

  1. 1. Support for work relating to the formulation of the Basic Plan.
  2. 2. Support for work regarding the formulation of the Request for Proposals as stipulated in the PPP Act.
  3. 3. Support for work regarding the designation of the concessionaire such as review and assessment of the project proposal, and conclusion of the con cession agreement.
  4. 4. Review and assessment of the project proposal by a party in the private sector.
  5. 5. Processing various applications for such matters as the approval and permis - sion regarding PPP projects for other organizations.
  6. 6. Support services for foreign private investors such as investment consulta - tion and other activities to induce foreign investment to PPP projects.
  7. 7. Review of potential PPP projects and feasibility studies thereof.
  8. 8. Development and operation of capacity building programs related to the implementation of PPP projects.
  9. 9. Improvement of private investment systems and research of related fields.
  10. 10. Finding potential PPP projects and support for work related thereto.
  11. 11. Other work related to the implementation of PPP Projects.
Build-Transfer-Own(BTO) Project

For BTO projects, the private partner realizes a reasonable return on its investment by charging a user fee. Ownership of the facility is transferred to the government upon completion of construction, and the concessionaire is granted the right to operate the facility and gain return on the investment.

Build-Transfer-Lease(BTL) Project

For BTL projects, the private partner recovers its investment through payments made by the central or local government. Ownership of the facility is transferred to the government upon completion of construction, and the concessionaire is granted the right to operate the facility and receive government payments (lease payment plus operational cost) based on its operational performance for a specified period of time.

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Law & Guideline
  • Act on PPP in Infrastructure

  • Enforcement Decree on the Act on PPP

  • Basic Plans for PPP

Technical Guidelines
  • Detailed Guideline for VFM Test

  • BTO Standard Financial Model

  • BTO Standard RFP

  • BTO Standard Concession Agreement

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