A study of social capital equipment policy and private participation infrastructure projects in South Korea: Focus on management systems

Abstract

This paper presents a study of private sector participation in Private Participation Infrastructure (PPI) projects, and forms a core part of the process known as the South Korean Social Capital Equipment Systems Investment Program. The study seeks to propose new directions for the current Private Participation Infrastructure System. Three policy problems existing in the PPI system were analyzed. First, decision-making by negotiation in each project management model process was examined. Next, the process for the selection of private companies to run each project plan was evaluated. In the course of this analysis we make recommendations for restructuring the evaluation system that currently guides project planning and the selection process for private companies. Finally, faults within the PPI master plan are discussed and suggestions made as to how the plan can be improved. This study identifies an improved approach to project management and redefines the structure and management of the PPI system. Emphasis on competition between the public and private sectors based on competitive market forces can assist the public sector, as the main user of the PPI system, in attempts to take the lead role in the proposed reform of management systems.