Cover -- Contents -- List of Tables, Figures, and Boxes -- Abbreviations -- Foreword -- Preface -- Acknowledgment -- Executive Summary -- Background -- Volume 1: Institutional Arrangements and Performance -- Volume 2: Cases of Build-Transfer-Operate Projects for Port and Build-Transfer-Lease Projects for Educational Facilities -- Volume 1: Institutional Arrangements and Performance of Public-Private Partnerships -- Introduction -- Institutional Settings for Public-Private Partnerships -- Background in Chronology -- Legal Framework -- Organization of Decision Process -- Procurement Schemes -- Government Support for Land Expropriation -- Financial and Tax Incentives -- Buyout Right and Concession Termination -- Training and Education Program -- Trends and Current Status of Public-Private Partnerships -- Build-Transfer-Operate Projects -- Build-Transfer-Lease Projects -- Private Financing through Infrastructure Bond and/or Fund -- Size of Fiscal Commitment in Public-Private Partnerships -- Implementation Procedure -- Procedure for Build-Transfer-Operate Solicited Project -- Procedures for Build-Transfer-Operate Unsolicited Project -- Procedure for Build-Transfer-Lease Project -- Ex-Post Management, Refinancing, and Renegotiation -- Monitoring -- Performance Management -- Stakeholder Survey on the Performance of Public-Private Partnership Projects -- Refinancing -- Refinancing Steps -- Renegotiation -- Evidence of Cost Savings and Efficiency Gain from Public-Private Partnerships -- Methodology -- Financial Analysis of Concession Agreement -- Analysis of Concession Agreement Clauses -- Wrap-Up: Cost Savings and Efficiency Gain -- Evidence of Public-Private Partnership Contribution to the National Economy -- Background -- Public-Private Partnership Contribution to Economic Growth -- Public-Private Partnership Contribution to Social Welfare.

Public-Private Partnership Contribution to Better Value for Money: Several Experiments -- Implications -- Budgeting and Safeguard Ceiling for Public-Private Partnership Fiscal Commitment -- Background -- Budgeting and Reporting of Public-Private Partnerships -- Developing Safeguard Ceiling for Annual Public-Private Partnership Payment -- Public-Private Partnerships as an Alternative Method of Fiscal Stimulus to Address the Global Financial Crisis -- Background -- The First Revitalization Initiative -- The Second Revitalization Initiative -- Lessons Learned and Challenges Ahead -- Lessons Learned -- Challenges Ahead -- References -- Appendixes -- 1 Public-Private Partnership Progress Report Forms -- 2 Institutional Settings for Public-Private Partnerships in Other Countries -- Table -- 2-1 Chronological Changes and Characteristics of Public-Private Partnership Financing in the Republic of Korea -- 2-2 Number of Eligible Infrastructure Facility Types by Sector -- 2-3 Financial Support-Related Articles in Public-Private Partnership Act -- 2-4 Internal Guideline for Negotiating a Construction Subsidy -- 2-5 Coverage-Minimum Revenue Guarantee and Redemption of Excess Revenue -- 2-6 Types of Infrastructure Credit Guarantee Fund Guarantees -- 2-7 Special Taxation for Public-Private Partnership Projects -- 2-8 Corporate Tax for Public-Private Partnership Projects -- 2-9 Local Tax Exemptions in Public-Private Partnership Projects -- 2-10 Exception from Charges for Public-Private Partnership Projects -- 2-11 Recognition of Buyout Right -- 2-12 Excerpts from a Concession Agreement on Concessionaire Actions Leading to Default -- 2-13 Excerpts from a Concession Agreement on Government Actions Leading to Default -- 2-14 Excerpts from a Concession Agreement on Force Majeure.

2-15 Calculation Guidelines for Early Termination Payment for Build-Transfer-Operate Projects, before October 2009 -- 2-16 Calculation Guidelines for Early Termination Payment for Build-Transfer-Operate Projects, as of October 2009 -- 2-17 Calculation Guidelines for Early Termination Payment for Build-Transfer-Lease Projects -- 3-1 Number of Build-Transfer-Operate Projects by Sector and Implementation Phase, as of September 2009 -- 3-2 Total Amount of Minimum Revenue Guarantee Subsidies for Projects in Operation By Year -- 3-3 Minimum Revenue Guarantee Agreement-Actual Subsidy Paid in 8 National Projects -- 3-4 Number of Signed Build-Transfer-Lease Projects and Total Cost as of September 2009 -- 3-5 Issue of Infrastructure Bond -- 3-6 Infrastructure Fund for Build-Transfer-Operate Projects -- 3-7 Asset Composition and Characteristics of Macquarie Korea Infrastructure Fund -- 3-8 Earning Rates of Funds Listed on Australian Securities Exchange, as of September 2006 -- 3-9 Macquarie Bank's Other Infrastructure Funds, as of December 2007 -- 3-10 Annual Financing Schedule for 116 Signed Build-Transfer-Operate Projects -- 5-1 Project Management Role of Competent Authority in a Concession Agreement -- 5-2 Public-Private Partnership Project Progress Report Form-Summary -- 5-3 Performance Check by Entity -- 5-4 Example of Service Satisfaction Evaluation: Evaluation Criteria for Customer Satisfaction -- 5-5 Example of Service Satisfaction: Evaluation Criteria for Customer Satisfaction Survey -- 5-6 Outline of Survey on Build-Transfer-Operate Projects -- 5-7 Outline of Survey on Build-Transfer-Lease Projects -- 5-8 Characteristics of Public-Private Partnership Project Refinancing: Republic of Korea vs. the United Kingdom -- 5-9 Refinancing Details of Selected Public-Private Partnership Projects in the Republic of Korea.

5-10 Uses of Refinancing Gains into Lowering Minimum Revenue Guarantee Level -- 5-11 Uses of Refinancing Gains into Lowering Redemption Level -- 5-12 Calculation of Refinancing Gain for Project X -- 5-13 Checklists in Calculating Refinancing Gains -- 5-14 Definition of Refinancing Gain -- 5-15 Basic Principle for Refinancing Gain -- 5-16 Sharing Refinancing Gain -- 5-17 Calculation Method of Refinancing Gain -- 5-18 Utilization of Refinancing Gain -- 5-19 Refinancing Steps -- 5-20 Role of the Public and Private Infrastructure Investment Management Center in Refinancing -- 5-21 Renegotiable Situations and Procedures -- 5-22 Regulations on Renegotiation of Concession Agreement -- 6-1 Perspectives of Parties to a Public-Private Partnership: Users, Concessionaires, and the Government -- 6-2 User Fees for Roads: Government-Financed vs. Public-Private Partnership Projects -- 6-3 User Fees for Railways: Government-Financed vs. Public-Private Partnership Projects -- 6-4 Number of Bidders on Public-Private Partnership Projects by Year -- 6-5 Number of Bidders on Public-Private Partnership Projects by Sector -- 6-6 Impact of Forecast Bias -- 6-7 Results of Fair Return for Build-Transfer-Operate Road Projects -- 6-8 Results of Fair Return for Railways and Ports -- 6-9 Comparison of Government Subsidy in Project A -- 6-10 Comparison of Government Subsidy in Project B -- 6-11 Government Role in Protecting the Interests of the Public -- 6-12 Cases of Interests of the Public in Concession Agreement Clauses -- 6-13 Clauses Relating to Risks and Returns for Concessionaire -- 6-14 Case of Clauses Relating to Risks and Returns for Concessionaire: Risk Mitigation -- 6-15 Guideline for Early Termination Payment in Build-Transfer-Operate Projects.

6-16 Evolution of Government Risk on Quality Control and Minimum Revenue Guarantee in the Basic Plan Guideline: Risks for Government -- 6-17 Case Study of Government Risk on Quality Control: New Boondang Railway -- 7-1 Investment Ratio in Investment Type -- 7-2 Growth Rates of Construction Investment -- 7-3 Ratio of Public-Private Partnership Investment by Type -- 7-4 Status of Tax Revenue in Public-Private Partnership Road Projects -- 7-5 Estimation of Growth Impact of Public-Private Partnerships Using the Korea Development Institute Macroeconomic Model -- 7-6 Overview of 14 Public-Private Partnership Road Projects -- 7-7 Results of Cost-Benefit Analysis of Public-Private Partnership Roads for 30 Years -- 7-8 Benefits of 14 Public-Private Partnership Roads from Service Delay -- 7-9 Welfare Effect: Early Realization of Benefits from 14 Public-Private Partnership Road Projects -- 7-10 Experiment 1: Presumed Value for Money Increase/Decrease in 66 Build-Transfer-Operate Projects -- 7-11 Experiment 2: Realized Value for Money Increase in 11 Build-Transfer-Operate Concession Agreements -- 7-12 Experiment 3: Realized Value for Money Increases in 30 Build-Transfer-Lease Concession Agreements -- 7-13 Comparison of Total Project Cost and Operating Cost in 12 School Projects -- 7-14 Major Reasons of Underestimation of Operational Cost in 12 School Projects -- 7-15 Ex-Post Value for Money Based on Re-Estimation of Operational Cost in 12 School Projects -- 9-1 The First Revitalization Initiative: Lowering Required Equity Capital Ratio -- 9-2 Revised Policy on Coverage of Compensation for Proposal Preparation Costs -- Annex Tables -- A1-1 Public-Private Partnership Project Progress Report Form: (1) Project Status -- A1-2 Public-Private Partnership Project Progress Report Form: (2) Project Progress.

A1-3 Public-Private Partnership Project Progress Report Form: (3) Concessionaire-Composition of Investors.