NO

ASPECTS

DESCRIPTION

1.

Legal and Regulatory Framework

- The hierarchy of the legal arrangements for PPP is

• Act on Private Participation in infrastructure (PPP Act)

• Enforcement Decree of the Act on Private Participation in infrastructure (PPP Enforcement Decree)

• Basic Plan for Public-Private Partnerships in Infrastructure (PPP Basic Plan)

• Guidelines for the Implementation of PPP Projects (PPP Implementation Guidelines)

- The PPP Act and the PPP Enforcement Decree, as the principal components of the legal framework for PPP projects, define eligible infrastructure types, procurement types, procurement process, the roles of the public and private parties, and policy supports. The PPP Act prevails over other acts as for PPP projects.

- The PPP Basic Plan and PPP Implementation Guidelines together address, in detail, policy directions, procurement steps, and government supports. The Basic Plan provides PPP policy directions, project implementation procedures, financing and subsidies, and documentation instruction. The Implementation Guidelines are prepared to improve transparency and objectivity in PPP implementation, examples of which include guidelines for VFM test, Request for Proposal (RFP) preparation, standard output specification by facility, tender evaluation, standard concession agreement, and refinancing, etc.

2.

Involved Government Agencies

- Ministry of Strategy and Finance (MOSF) is responsible for implementing the PPP Act, the PPP Enforcement Decree, and the PPP Basic Plan. It prepares the draft budget for PPPs and develops national PPP policies and formulates the PPP Basic Plan, PPP implementation Guidelines, and Fiscal Rules. It chairs the PPP Review Committee (PRC).

- PPP Review Committee (PRC) reviews and deliberates the PPP Basic Plan and major PPP policies. It deliberates matters concerning key decisions in the process of implementing large-scale PPP projects. The committee is composed of the minister of the MOSF (chair), vice ministers of line ministries in charge of implementing PPP projects, and private sector experts with knowledge and experience in PPP projects.

- Competent authority, a central administrative agency or a local government responsible for the infrastructure facility project at issue, takes charge of the works related with the implementation, management, and operation of PPP projects. Specifically, their responsibilities include development of an eligible PPP project and the feasibility analysis thereon; designation and public notification of an eligible PPP project; establishment and public notification of a request for proposals or a request for alternate proposals; assessment of a project plan or proposal and the designation of a preferred bidder; negotiations for the execution of a concession agreement, the execution of a concession agreement, and the designation of a concessionaire; approval of an implementation plan; matters regarding the management and supervision of projects, etc.

- Public and Private Infrastructure Investment Management Center (PIMAC), as a PPP unit under the PPP Act, provides comprehensive and professional support for the implementation of PPP projects. The PIMAC conducts the following tasks: supporting the MOSF in the formulation of the PPP Basic Plan; supporting the competent authorities and ministries in the procurement process, such as assessments of feasibility and value for money for potential PPP projects, formulation of the request for proposal, designation of the concessionaire, evaluation of project proposals by private companies, negotiation with preferred bidder, etc.; promoting foreign investment in PPP projects through consultation services and other related activities; and developing and operating capacity-building programs for public sector practitioners. Besides these technical assistances, it conducts policy research related to PPP programs and provides policy advice to the MOSF and procuring ministries. It also prepares and publishes detailed guidelines for each work for the implementation of PPP projects.

- Korea Infrastructure Credit Guarantee Fund (KICGF) was established in August 1994, under the provisions of the 'Act on Private Participation in Infrastructure. The objective of the Fund is to facilitate securing public-private partnership project fund and guarantee the pecuniary obligations falling under the each subparagraph of Article 34(1) of the Act.

3.

Supporting Agencies

- Refer to #2 for details.