In preparing a PPP project, the public sector identifies and appraises candidate projects through, among other things, feasibility studies and value- for-money tests. A notable feature of the early years of PPPs in the Republic of Korea was the absence of these mechanisms, and this has also affected some recent projects. Demand and revenue of the Incheon International Airport Railway Project, completed in 2007, were overestimated in the preparation phase because no value-for-money test was done. This case underscores the importance of having governance mechanisms in place at the pre-tender stage and having the capacity to implement them.