Private Participation in Infrastructure Projects in the Republic of Korea
In the aftermath of the 1997 East Asian financial crisis, the government of the Republic of Korea published a Private Participation in Infrastructure (PPI) Act to remove the main impediments to private investment in infrastructure sectors. The implementation of the Act was followed by a steady incre...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/09/6246670/private-participation-infrastructure-projects-republic-korea http://hdl.handle.net/10986/8606 |
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okr-10986-86062021-04-23T14:02:43Z Private Participation in Infrastructure Projects in the Republic of Korea Noumba Um, Paul Dinghem, Severine ASSETS AUCTION AUCTIONS BID BIDDERS BIDDING BIDDING DOCUMENTS CENTRAL GOVERNMENTS CITIES COMPETITIVE BIDDING DEBT DECISION MAKING ECONOMIC EFFICIENCY ECONOMIC OUTCOMES ECONOMICS ELECTRICITY SERVICES EMPLOYMENT EXCHANGE RATES EXPENDITURES FINANCING SOURCES FOREIGN FIRMS FOREIGN INVESTORS GARBAGE COLLECTION HOUSING INNOVATIONS LATIN AMERICAN LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MATURITY OPEN AUCTIONS PACIFIC REGION PENALTIES POLICY RESEARCH PRIVATE CAPITAL PRIVATE SECTOR PRIVATIZATION PROGRAMS RADIO RATE OF RETURN REGULATORY FRAMEWORK RISK SHARING SEWAGE STATE ENTERPRISES TAXATION TECHNICAL ASSISTANCE TELECOMMUNICATIONS TENDERS TRANSPARENCY TRANSPORT WATER SUPPLY In the aftermath of the 1997 East Asian financial crisis, the government of the Republic of Korea published a Private Participation in Infrastructure (PPI) Act to remove the main impediments to private investment in infrastructure sectors. The implementation of the Act was followed by a steady increase in the number of PPI projects, thus spurring the modernization of the main infrastructure facilities in transport, water, electricity, and telecommunications. Despite this progress, the Korean PPI market still faces critical challenges that are probably related to its nascent stage of development. The market is dominated by five construction and engineering firms, but lacks world-class project developers. At the same time, the procurement of PPI projects takes on average four years, and competition in tenders is limited. The number of unsolicited proposals is abnormally high, whereas the number of solicited proposals remains flat. The participation of foreign firms is very limited despite the size of the market and the number of projects awarded. Although local financing is available, the maturity of financing instruments does not exceed five years for most corporate papers, and 10 years for government bonds. This paper reviews the procurement of PPI projects in Korea and benchmarks it to international best practices before proposing options for its improvement. 2012-06-20T22:08:40Z 2012-06-20T22:08:40Z 2005-09 http://documents.worldbank.org/curated/en/2005/09/6246670/private-participation-infrastructure-projects-republic-korea http://hdl.handle.net/10986/8606 English Policy Research Working Paper; No. 3689 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Korea, Republic of |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ASSETS AUCTION AUCTIONS BID BIDDERS BIDDING BIDDING DOCUMENTS CENTRAL GOVERNMENTS CITIES COMPETITIVE BIDDING DEBT DECISION MAKING ECONOMIC EFFICIENCY ECONOMIC OUTCOMES ECONOMICS ELECTRICITY SERVICES EMPLOYMENT EXCHANGE RATES EXPENDITURES FINANCING SOURCES FOREIGN FIRMS FOREIGN INVESTORS GARBAGE COLLECTION HOUSING INNOVATIONS LATIN AMERICAN LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MATURITY OPEN AUCTIONS PACIFIC REGION PENALTIES POLICY RESEARCH PRIVATE CAPITAL PRIVATE SECTOR PRIVATIZATION PROGRAMS RADIO RATE OF RETURN REGULATORY FRAMEWORK RISK SHARING SEWAGE STATE ENTERPRISES TAXATION TECHNICAL ASSISTANCE TELECOMMUNICATIONS TENDERS TRANSPARENCY TRANSPORT WATER SUPPLY |
| spellingShingle |
ASSETS AUCTION AUCTIONS BID BIDDERS BIDDING BIDDING DOCUMENTS CENTRAL GOVERNMENTS CITIES COMPETITIVE BIDDING DEBT DECISION MAKING ECONOMIC EFFICIENCY ECONOMIC OUTCOMES ECONOMICS ELECTRICITY SERVICES EMPLOYMENT EXCHANGE RATES EXPENDITURES FINANCING SOURCES FOREIGN FIRMS FOREIGN INVESTORS GARBAGE COLLECTION HOUSING INNOVATIONS LATIN AMERICAN LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MATURITY OPEN AUCTIONS PACIFIC REGION PENALTIES POLICY RESEARCH PRIVATE CAPITAL PRIVATE SECTOR PRIVATIZATION PROGRAMS RADIO RATE OF RETURN REGULATORY FRAMEWORK RISK SHARING SEWAGE STATE ENTERPRISES TAXATION TECHNICAL ASSISTANCE TELECOMMUNICATIONS TENDERS TRANSPARENCY TRANSPORT WATER SUPPLY Noumba Um, Paul Dinghem, Severine Private Participation in Infrastructure Projects in the Republic of Korea |
| geographic_facet |
East Asia and Pacific Korea, Republic of |
| relation |
Policy Research Working Paper; No. 3689 |
| description |
In the aftermath of the 1997 East Asian financial crisis, the government of the Republic of Korea published a Private Participation in Infrastructure (PPI) Act to remove the main impediments to private investment in infrastructure sectors. The implementation of the Act was followed by a steady increase in the number of PPI projects, thus spurring the modernization of the main infrastructure facilities in transport, water, electricity, and telecommunications. Despite this progress, the Korean PPI market still faces critical challenges that are probably related to its nascent stage of development. The market is dominated by five construction and engineering firms, but lacks world-class project developers. At the same time, the procurement of PPI projects takes on average four years, and competition in tenders is limited. The number of unsolicited proposals is abnormally high, whereas the number of solicited proposals remains flat. The participation of foreign firms is very limited despite the size of the market and the number of projects awarded. Although local financing is available, the maturity of financing instruments does not exceed five years for most corporate papers, and 10 years for government bonds. This paper reviews the procurement of PPI projects in Korea and benchmarks it to international best practices before proposing options for its improvement. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Noumba Um, Paul Dinghem, Severine |
| author_facet |
Noumba Um, Paul Dinghem, Severine |
| author_sort |
Noumba Um, Paul |
| title |
Private Participation in Infrastructure Projects in the Republic of Korea |
| title_short |
Private Participation in Infrastructure Projects in the Republic of Korea |
| title_full |
Private Participation in Infrastructure Projects in the Republic of Korea |
| title_fullStr |
Private Participation in Infrastructure Projects in the Republic of Korea |
| title_full_unstemmed |
Private Participation in Infrastructure Projects in the Republic of Korea |
| title_sort |
private participation in infrastructure projects in the republic of korea |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/09/6246670/private-participation-infrastructure-projects-republic-korea http://hdl.handle.net/10986/8606 |
| _version_ |
1764407724411453440 |