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http://dx.doi.org/10.6106/KJCEM.2011.12.2.32

How to improve the governance for PPPs on special purpose facilities in Korea - based on the UK PFI failure case study -  

Choi, Seok-Joon (서울시립대학교 경제학과)
Lee, Ji-Hae (서울시립대학교 경제대학원)
Publication Information
Korean Journal of Construction Engineering and Management / v.12, no.2, 2011 , pp. 32-40 More about this Journal
Abstract
The PPPs(public private partnerships) which was introduced in the later part of the 1990s has grown since 2005, with the beginning of BTL(Build Transfer Lease) type which retrieves the investment by receiving the lease payment from the government. As application areas and scale of the PPPs have been further expanded, it is expected the demand on special purpose facilities will be increased. We do know only successful foreign practices of the PPPs but have rarely consider the failure cases. Therefore, this paper derives implications by analyzing the case of National physical laboratory project which is known as a typical failure case of UK's PFI. We find that from the perspective of governance, the reasons leading to the failure of business are an insufficient of technical rationality, unsettled social relationships and inefficient risk management. Based on the case study, this study shows how to improve management system for special purpose PPPs business in Korea.
Keywords
PPPs; BTL; Governance; UK's PFI; National physical laboratory;
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