• Title/Summary/Keyword: a private infrastructure project

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Performance-Oriented Procurement Process and VE/PSC for Private Finance Initiatives (민간투자사업의 성능중심적 발주방식 및 PSC의 활용방안)

  • Lim Jong-Kwon;Park Heung-Min;Jung Kun-Ho;Woo Ji-Won
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2004.11a
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    • pp.51-58
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    • 2004
  • The input-oriented project promotion system private participation in infrastructure projects currently in use in Korea has encountered difficulties in securing the primary benefits of private sector creativity problem solving and inflow of private capital. As such, the performance (or output)-oriented procurement process implemented in England and other developed countries should be evaluated for introduction. In Korea, private participation projects are currently identified as either solicited or unsolicited projects, each with different promotional procedures, the problem with these procedures is that competition is not pre-activated, the private sectors creativity is under utilized, and the rationality of project evaluations is inconsistent. Korea should, in order to raise the level of private sector creativity and efficiency, go beyond the currently applied Input Specification project promotion system to a Performance-oriented system similar to those implemented in England and other countries. To achieve this, we mate several proposals for the introduction of the performance-oriented system. We divide the main features of our proposals into three categories, including a reformed concessionaire selection system, a performance orientation in preparation of the concession agreement, and a performance orientation in contract management, and discuss each. 1'his study describes performance-oriented promotion systems in an output-focused way As this is an initial study on the introduction of performance orientation in private participation, various key points and proposals were identified. However, in the future, detailed research in technical fields and systems, legal research, and practical projects will be needed for implementation

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Decision Support Model for Determining Public or Private Highway Investment Projects (고속도로 건설사업의 재정/민자 발주선택 의사결정 지원모델)

  • Yeo, Donghoon;Jeong, Wooyong;Han, Seung Heon;Lee, Young Cheon
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.29 no.3D
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    • pp.381-389
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    • 2009
  • Korean government is investing 1.8 billion won on infrastructure and investment on PPP projects constitutes 16.3%. This phenomenon is to promote private investment as well as lessening government burdens of public budgeting. However, the only criterion to be considered is government financial status in selecting public or private highway investment projects. So systematic decision support model is required in choosing public or private highway investment projects. So, this paper suggests a systematic decision support model for deciding public or private highway investment at the early stage of project planning. Furthermore, this paper identifies key decision variables with respect to economic, politic, project management criterions based on the related literatures and feedbacks from experts. This paper analyzed 30 cases of government investment and PPP projects and got the survey result from highway specialists. As a result, this paper presents an interval with respect to economic criteria using mean and standard deviation and a logistic regression equation which can predict the possibility of PPP project. Through this study, decision maker of central or local government can decide public or PPP highway project more systematically and reasonably.

USE OF OUTPUT SPECIFICATIONS IN PFI HOUSING PROJECTS

  • Patrick T.I. Lam ;Albert P. C. Chan ; Akintola Akintoye ;Arshad Ali Javed
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.389-394
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    • 2011
  • In many parts of the world, low cost housing used to be built and maintained by the governments, based on designs and detail specifications prepared by the public sector with construction carried out by contractors. Results vary due to differences in design standards, workmanship and property management, depending also on the neighbourhood's care of the estates and their pattern of usage. In the UK, where Private Finance Initiative (PFI) has been used for infrastructure projects, there have been successful cases of city estate being transformed by PFI. These PFI housing schemes involve new-build, refurbishment as well as facility management. Unlike traditional construction, which is based on prescriptive specifications, PFI housing is based on output specifications. A study has been undertaken to compare the two specification approaches as they are applied to housing estate. Results are enlightening and serve as good reference to cities such as Hong Kong SAR and Singapore, where public housing provisions have been a major concern of their citizens as the building stock gets older.

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Understanding the Perceptions of Stakeholders in Environmental Conflict - Public-Supported Private Rental Housing Conflict in Busan Sasang-gu Jurye 3 District - (환경갈등에 있어 이해관계자들의 인식에 관한 연구 - 부산 사상구 주례 3지구 민간임대주택사업사례를 대상으로 -)

  • Park, Jong-Sik;Cho, Seong Yun;Jung, Juchul
    • Journal of Korea Planning Association
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    • v.54 no.4
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    • pp.109-121
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    • 2019
  • The purpose of this study is to understand the perceptions of stakeholders in environmental conflicts. The private rental housing project in Busan Sasang-gu Jurye 3 District, which took place in 2017 is one of many cases of environmental conflicts between developers and local residents. The case is considered as a typical failure of collaborative governance that has consequently caused negative impacts to both local residents and government. To understand why local residents could not come to consensus even though the majority of them were against the development project, we analyzed residents' perceptions and subjective opinions towards environmental conflicts. This study adopted 'Q methodology' to investigate human subjectivity. The results showed three distinguished types of subjectivity structures. Each type was named as 'collaborative governance advocates', 'public administration distrusters', and 'current local government supporters' based on their characteristics. Participants in all three types showed opposition to environmental damages that can be caused by the private rental housing development, but they revealed different perspectives on the importance of public participation and institutional responsibility in the process of decision-making. This study makes better understand what makes it difficult to build collaborative governance as a means of overcoming environmental conflicts.

A Feasibility Study on the Infrastructure Project of PCB Industrial Technology (PCB 산업기술 기반구축 사업의 타당성 분석 연구)

  • Kim, Dae Ho
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.8 no.4
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    • pp.57-66
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    • 2013
  • Domestic PCB industry formed by orders of demand companies is extremely vulnerable in its innovation infrastructure including high value-added technology development and information exchange. The majority of PCB products produced in the country relies on the imports from abroad and it causes its vulnerability to external market changes. Due to the negative perceptions about the industry (e.g., 3D job), low treatment (especially SMEs) and expertise employment avoidance in PCB industry, the job market conditions of PCB industry is not so good. In these circumstances, the PCB industry is completely dependent on the demand market such as cellular phones, and tablet PC, and as a result the responsiveness of PCB industry to the changes in demand market is also vulnerable. In this PCB industry, Korean government is trying to build the research infrastructure for PCB industry that realizes the sharing of information among companiesthrough the operation of the PCB industry innovation forum (information innovation), builds SME suppot platform and supports quality improvement (technology innovation), and supports enterprise collaboration processes (material-process-equipment) utilizing PCM open laboratory. The PCB industry technology infratstructure project is going to be promoted by the government(1.3 billion won, each year) and the private investmen(434 million won each year) from 2013 to 2017(5 years project)(table 1). This study analyzes the feasibility of the project, by using the AHP analysis and the results shows that this project is considered feasible because the AHP overall score is evaluated as 0.841, the overall score is greater than or equal to 0.55.

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A Study on the Causal Loop Analysis and the Economics of BTO and BTL System of PFI (BTL과 BTO사업의 인과순환구조 분석과 경제성 비교에 관한 연구)

  • Choi, Nam-Hee
    • Korean System Dynamics Review
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    • v.12 no.4
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    • pp.35-62
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    • 2011
  • PFI(Private Finance Initiative) for suppling SOC and public facilities instead of Government Infrastructure Project introduced from 1994. BTO(Build-Transfer-Operate) project had been major type of PFI system from 1994 to 2005. But after changed the Law of PFI on SOC, the BTL project newly introduced. In BTO system, the Government retrieves the investment through the operating income, but in BTL system, the government lease the facilities. As the BTO and BTL projects are widely adopted and implemented to ease the fiscal burden of government, but it has caused the tremendous fiscal burden each year over the period operation. Therefore this study attempted to analyze the question, that is, why government fiscal burden tipping? Hence, this paper, compares the difference of business structure between BTO and BTL project and explore the vicious and virtuous business structure, with the method of circular causal loop analysis. As a result, it has shown that there are some positive feedback and negative feedback loops cause the tipping and easing of government fiscal burden.

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An Improvement Method through Build-Transfer-Lease (BTL) Problem Analysis from the Special Purpose Company (SPC) Perspective (SPC 관점에서의 BTL사업 문제점 분석을 통한 개선방법)

  • Kim, Soo-Yong;Son, Myung-Chan;Yang, Jin-Kook
    • Korean Journal of Construction Engineering and Management
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    • v.14 no.3
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    • pp.167-175
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    • 2013
  • In 2005, the government introduced BTL(Build-Transfer-Lease) projects as one of the methods of private investment in infrastructure. In a BTL project, a private company builds a public facility and leases it to the government to withdraw its invested capital. But there appear several problems with it due to a short period of preparation and lack of experiences. Specifically, private companies that plan to participate in this project have to take a risk since serious problems are likely to take place because of unrealistic estimation of construction costs, etc., and they finally avoid participating in this project. A case study was made over advanced countries, Japan and the United Kingdom, to find out how to resolve the problems, and rational 7 improvement method were presented from a perspective of Special Purpose Company (SPC), which could be accepted by both of SPC and government agencies. The findings of the study are expected to provide workable solutions to BTL projects from a standpoint of private companies to facilitate the rational improvement of BTL projects, and this study is ultimately expected to stimulate the active participation of SPC to make a contribution to the vitalization of domestic BTL projects.

Accessible Strategy of the Registration & Management of Hypertension and Diabetes Mellitus Patients through the Public-Private Partnership: Policy Implications Fron the Hongcheon-gun Case (민관협력을 통한 고혈압.당뇨병 등록.관리사업의 접근 전략: 홍천군 사례의 정책적 함의)

  • Byun, Do-Hwa;Kim, Eun Jeong;Park, Myung-Bae;Son, Hyo-Rim;Park, Hye-Kyong;Kim, Chun-Bae
    • Korean Journal of Health Education and Promotion
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    • v.30 no.4
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    • pp.111-123
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    • 2013
  • Objectives: This study aimed to share with experiences of a demonstration program based on a community for prevention and management of hypertension and diabetes mellitus, and to supply the evidence of accessible strategies within the community through the public-private partnershipin the near future. Methods: This study case was "the program of registration and management of hypertension and diabetes mellitus patients" which was conducted in Hogncheon-gun in Gangwon-province, 2012. Results: The infrastructure of this center was constructed with the public-private sector partnership according to the basic model of demonstration program since November, 2012. So, the total registered rate of hypertension and diabetes mellitus patients were 26.6% in comparison with suspected patients (to the result of 2011 Korea National Health and Nutrition Examination Survey), 37.8% in comparison with the real number of outpatient (to the claims data of 2011 Branch Honcheon-gun, National Health Insurance Corporation), and 107.8% in comparison with the project goal, sequentially. To the patients who were not treated for 30 and 60 days among the registered patients, a recall service was conducted. Through this intervention, it was monitored that this program has enhanced the consecutive treatment rate of the registered patients. Conclusions: To improve the continuous management of hypertension and diabetes mellitus patients, we are gotten to know that the community need the joint participation and mutual cooperation with public-private sector partnership.

Value Management of Private Finance Initiative Projects (민간투자사업을 위한 VE 적용방안)

  • Lim, Jong-Kwon;Kim, Seoung-Il
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2006.11a
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    • pp.123-130
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    • 2006
  • Recently, Korean government promotes BTL(Build-Transfer-Lease) for their public construction project to apply private sector's experience and finance initiatives. Many of public buildings and civil infrastructure projects were planned to be delivered by BTL and it helps to continue public projects under tight budget conditions. Since the characteristics of BTL projects, creative ideas for the project function, performance and its LCC (Life Cycle Cost) become more important than usual public work project. This paper introduces the systematic "VE job Plan" application techniques for BTL project and shows the process. This study shows the application of "VE job Plan" for BTL project to help decision making and value improvement. Also, Project cost was estimated by LCC (Life Cycle Cost) analysis. Technical "FAST diagram"was developed and used to find major functions of the project. So, it helps to improve performance of functions and make creative ideas. FAST diagram also help to find relationships between functions and cost. A case study (Daegu Art Gallery BTL Project) was conducted using proposed "VE job Plan. Study demonstrates how value management helps save money and increase functional performance. Researcher found that project can save cost and improve performance of functions significantly by using appropriate VE analysis process at appropriate time.

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Use of Output Specifications in PFI Housing Projects - How They Differ from Prescriptive Specifications

  • Lam, Patrick T.I.;Chan, Albert P.C.;Akintoye, Akintola;Javed, Arshad Ali
    • Journal of Construction Engineering and Project Management
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    • v.1 no.2
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    • pp.43-48
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    • 2011
  • In many parts of the world, low cost housing used to be built and maintained by the governments, based on designs and detail specifications prepared by the public sector with construction carried out by contractors. Results vary due to differences in design standards, workmanship and property management, depending also on the neighbourhood's care of the estates and their pattern of usage. In the UK, where Private Finance Initiative (PFI) has been used for infrastructure projects, there have been successful cases of city estate being transformed by PFI. These PFI housing schemes involve new-build, refurbishment as well as facility management. Unlike traditional construction, which is based on prescriptive specifications, PFI housing is based on output specifications. A study has been undertaken to compare the two specification approaches as they are applied to housing estate. Results are enlightening and serve as good reference to cities such as Hong Kong SAR and Singapore, where public housing provisions have been a major concern of their citizens as the building stock gets older.