Agreement Synopsis, Context and Review

The Republic of Korea has rich experience in implementing PPP projects for almost a decade. This experience provides valuable lessons for most DMCs and that merits wider dissemination. The two-volume report prepared by the Korea Development Institute (KDI) presents an in-depth assessment of the different components of PPP framework of the Republic of Korea, including comparing and contrasting the success factors of the Korean PPP model with the experience of other countries through invited presentations on PPP frameworks and multisector case studies.

Public-private partnerships (PPPs) involve private sector supply of infrastructure assets and services that have traditionally been provided by the government. An infusion of private capital and management can ease fiscal  constraints on infrastructure investment and increase efficiency. Reflecting these advantages, PPPs are taking off around the world: there are well-established programs in a number of countries (including Chile, Ireland, Mexico, and the United Kingdom), and less developed programs or a good deal of interest in many others.

Transportation officials at all levels of government are challenged to identify ways to pay for improvements to our Nation's transportation infrastructure. Despite record levels of investment in surface transportation infrastructure in recent years, traditional funding sources have not kept pace with the investment demands of an aging and increasingly complex U.S. transportation system.

This document provides guidance in the application of PPPs to transportation projects based on the experiences of transportation agencies in the U.S. and other countries that have applied these delivery approaches. The guidebook is aimed at both early practitioners of PPP projects as well as those agencies just beginning to consider the possibility of instituting PPP approaches for projects currently stalled for lack of available resources.
 

The private partner would operate and manage and further develop the infrastructure to ensure (1) the area is fully irrigated within six (6) years of the date of signature of the contract; and (2) that at least 25% of the irrigated land is available for small farmers, who should be integrated into the production chain of the commercial producers that would occupy the remainder of the land. The private partner will be remunerated for the sale of water (through user tariffs) and a capacity payment by the government.