| NO | ASPECTS | DESCRIPTION |
| 4. | Available Sectors | - Under the PPP Act, 49 infrastructure facility types in 16 sectors are eligible for PPP procurement. • Road (4): roads and appurtenances; off-road parking lots; intermodal transfer center and intelligent transport system; facilities for bicycle riding. • Rail (3): railroads; railroads facilities; urban railroads. • Port (3): harbor facilities; fishery harbor facilities; facilities subject to a new harbor construction project. • Airport (1): airport facilities. • Water resources (3): multi-purpose dams; waterwork systems; river facilities. • Communications (5): telecommunication facilities; information and communication network; spatial information system; super-high speed information and communication networks; infrastructure of ubiquitous cities. • Energy (4): electric source facilities; gas supply facilities; integrated energy facilities; new and renewable energy facilities. • Environment (5): sewage systems; waste disposal facilities; wastewater treatment terminal facilities; public treatment facilities; recycling facilities. • Logistics (2): logistics terminal and logistics complexes; bus terminals. • Culture and tourism (9): tourist destinations and resort complexes; urban parks; specialized sports facilities; jevenile training establishments; libraries; museums and art galleries; international conference facilities; science museums; cultural facilities. • Education (1): kindergartens and schools. • National defense (1): military residential facilities. • Housing (1): public rental housing. • Welfare (4): nursing facilities; residential care facilities, medical care facilities, and facilities for home care for the elderly; public health and medical service facilities; welfare facilities for persons with disabilities. • Forestry (2): natural and recreational forest; arboretums. • Industrial cluster (1): industrial cluster infrastructure. |
| 5. | Eligible Tender Participants / Project Initiator | - The private sector which comprises corporations including foreign corporations and public joint corporations may propose a PPP project to be implemented as an unsolicited project by drawing up a written proposal and submitting it to the competent authority. - The competent authority specifies matters concerning the eligibility of the concessionaire when formulating and announcing the master plan of PPP project, which include the followings: the essential qualifications and capabilities of a project applicant; the form of company; the equity share of the largest investor and high-level investors, etc. |
| 6. | Types of PPP Structures/ Contract Types | - BTO (Build-transfer-operate), BTL (Build-transfer-lease), BOT (Build-operate-transfer), BOO (Build-own-operate), RTO (Rehabilitation-transfer-operate), ROT (Rehabilitate-operate-transfer), ROO (Rehabilitate-own-operate), RTL (Rehabilitate-transfer-lease) or mixture of BTO and BTL are applicable. - Other methods are also used by the competent authority in RFPs (request for proposals) for PPP projects and by the private sector in project proposals, such as build-lease-transfer, rehabilitate-operate-transfer, rehabilitate-own-operate, and rehabilitate-transfer-lease, etc. |
| 7. | Types of Project | - PPP projects are categorized into solicited and unsolicited depending on who initiates the project. • Solicited project: The competent authority - central or local government - identifies a potential PPP project and solicits proposals from the private sector. • Unsolicited project: The private sector identifies a potential PPP project and requests designation of the project as a PPP from the competent authority. The initial proponent may obtain bonus points in the bid evaluation although the concessionaire is selected under a competitive bidding process. |
| 8. | Project Stages and Implementation for Solicited Proposals | - Designation of PPP project. - Announcement of Request for Proposals. - Submission of project proposals. - Bid evaluation and selection of preferred bidder. - Negotiation and contract award. - Approval of detailed engineering and design plan for implementation. - Construction and operation. |
| 9. | Project Stages and Implementation for Unsolicited Proposals | - Submission of project proposal. - Review of project proposal. (Feasibility Study) - Notification of request for alternate proposals. - Bid evaluation and selection of preferred bidder. - Negotiation for concession agreement. |
| 10. | Mechanisms to Engage Private Sector at Project Development Stages | - The private sector that identified a potential PPP project may request designation of the project as a PPP from the competent authority. Based on the merits of the initial proposal, bonus points within 10% of the total evaluation points can be awared upon the review of the VFM assessment. The initial proponet can modify its original proposal; however, the maximum level of bonus points to the initial proponent is reduced to 5% of the total evaluation points. When the competent authority sets the ratio of bonus points to be granted to the initial proponent, it shall clearly state the ratio in the request for alternate proposals. - The PIMAC, as one of its roles, conducts various public relations activities at home and abroad in relation to PPP projects through providing foreign investors with counseling services for investment, conducting activities for inviting foreign investment, holding project presentation sessions, etc. |
| 11. | Project Appraisal and Selection Process | - Solicited project: • (Preliminary feasibility study) If the competent authority intends to implement a project with a total project cost of not less than KRW 50 billion, out of which KRW 30 billion or more shall be subsidized by the central government, as a PPP project, it shall file an application for the preliminary feasibility study with the MOSF. PIMAC commissioned by the MOSF conducts the preliminary feasibility study to examine project feasibility and presents its findings. • (Feasibility analysis) For a project with total project cost expected to be less than KRW 200 billion, the competent authority itself conducts a feasibility analysis, including a VFM test, and determines whether it is appropriate as a PPP project. However, for a project with total cost expected to be KRW 200 billion or more, the competent authority is required to submit the results of feasibility analysis and basic design documents to the PIMAC for review. Then, the competent authority shall request that the MOSF submit the project to the PRC for deliberation, while including the results of the feasibility analysis and the findings of the PIMAC. - Unsolicited project: • (Review of project proposal) Where the competent authority deems that the project proposal submitted by private sector meets the formal requisites and conforms to the PPP Act and subordinate statutes and the policies of the competent authority, it shall ask the PIMAC to review the details of the project proposal before deciding upon whether the proposed project is to be implemented as a PPP project. Then, the PIMAC conducts feasibility study and VFM test, and submits its opinion on the proposal to the competent authority and the MOSF. • (Designation and notification) Taking into consideration the opinion of the PIMAC, the competent authority shall notify the private proponent when it decides to implement a project proposed by a private sector as a PPP project and shall give public notice of outlines of the proposal through the Official Gazette, three or more daily newspapers, the competent authority's website, and the website of the PIMAC so that alternate proposals are permitted. To implement a project with total costs of more than KRW 200 billion or requiring a subsidy from the central government, prior deliberation by the PRC is required. |