Under the Technical Assistance Collaboration Agreement with the Asian Development Bank (ADB), recognizing the need to facilitate Public Private Partnership (PPP) in developing member countries, Korea Development Institute (KDI) produced this publication based on Korean experience of PPP over the last decade. With reflection of the Korean PPP procurement scheme, the current publication tries to present not only case studies on institutional arrangements for PPP in the Republic of Korea but also the policies and evidences of maximizing benefits and value for money of PPP while minimizing downsides and risks.
This book is divided into two volumes of case studies presenting the experience with PPP infrastructure projects in the Republic of Korea, along with appendixes. The first volume examines the institutional framework of the Korean PPP system, its performance, and recent strategies and initiatives for effective PPP implementation and management. The second volume summarizes cases involving BTO port and BTL educational facility projects. In the appendixes, a global country comparison is provided, including country PPP frameworks and case studies.

Executive Summary

Volume 1: Institutional Arrangements and Performance of Public-Private Partnerships

Introduction

Institutional Settings for Public-Private Partnerships
　Background in Chronology
　Legal Framework
　Organization of Decision Process
　Procurement Schemes
　Government Support for Land Expropriation
　Financial and Tax Incentives
　Buyout Right and Concession Termination
　Training and Education Program

Trends and Current Status of Public-Private Partnerships
　Build-Transfer-Operate Projects
　Build-Transfer-Lease Projects
　Private Financing through Infrastructure Bond and/or Fund
　Size of Fiscal Commitment in Public-Private Partnerships

Implementation Procedure
　Procedure for Build-Transfer-Operate Solicited Project
　Procedures for Build-Transfer-Operate Unsolicited Project
　Procedure for Build-Transfer-Lease Project

Ex-Post Management, Refinancing, and Renegotiation
　Monitoring
　Performance Management
　Stakeholder Survey on the Performance of Public-Private Partnership Projects
　Refinancing
　Refinancing Steps
　Renegotiation

Evidence of Cost Savings and Efficiency Gain from Public-Private Partnerships
　Methodology
　Financial Analysis of Concession Agreement
　Analysis of Concession Agreement Clauses
　Wrap-Up: Cost Savings and Efficiency Gain

Evidence of Public-Private Partnership Contribution to the
　National Economy
　Background
　Public-Private Partnership Contribution to Economic Growth
　Public-Private Partnership Contribution to Social Welfare
　Public-Private Partnership Contribution to Better Value for Money:Several Experiments
　Implications

Budgeting and Safeguard Ceiling for Public-Private Partnership Fiscal Commitment
　Background
　Budgeting and Reporting of Public-Private Partnerships
　Developing Safeguard Ceiling for Annual Public-Private Partnership Payment

Public-Private Partnerships as an Alternative Method of Fiscal Stimulus to Address the Global Financial Crisis
　Background
　The First Revitalization Initiative
　The Second Revitalization Initiative

Lessons Learned and Challenges Ahead
　Lessons Learned
　Challenges Ahead

References
Appendixes