The purpose of this study is as follows: first, to examine the significance and characteristics of refinancing and restructuring of private investments on social overhead capital facilities by analyzing projects which have been carried out within the last 5 years; second, to study the effects of refinancing and restructuring on government and users, as well as their impact on potential risks and investment returns for concessionaires; third, to suggest improved methods of refinancing and restructuring in order to better address issues mentioned. The followings are results of analyses: First, in case of refinancing, the calculated public effects on variance of sales showed in the range of 6~24%, and in case if restructuring, between the range of 22~47%, higher than the former. Public effects is calculated by variance of sales, because rate cut and reduction of MRG by refinancing or restructuring all leads to a decrease of sales. Second, considering the risk factors and costs, when projects include the MRG system for the entire duration of operation, restructuring rather than refinancing proved to be more effective for the administrative agency. However, when the coverage of MRG system is limited, the outcomes vary depending on factors, such as the volume of traffic and options of rate increase. Third, the return on investment concerning investment opportunities in the private sector, refinancing cases appears to be higher by about 2.0%, represents risk premium on demand forecast. Finally, as for ways to make improvements for the existing methods, in case of refinancing, predictability for private investors need to be improved together with institutional modifications, which induce positive public effects and protect the rights and interests of the existing concessionaires. In case of restructuring, establishment of a new system for evaluating demand forecast as well as validity of projects should be considered. Moreover, the new system should include the option of paying compensation to investors even if the sum exceeds termination payment of implementation agreement, if doing so leads to greater public value.
@article{ART002120544}, author={조혁종 and 남윤길 and 김형진}, title={The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects}, journal={The Korea Spatial Planning Review}, issn={1229-8638}, year={2016}, volume={89}, pages={55-72}, doi={10.15793/kspr.2016.89..004}
TY - JOUR AU - 조혁종 AU - 남윤길 AU - 김형진 TI - The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects JO - The Korea Spatial Planning Review PY - 2016 VL - 89 IS - null PB - 국토연구원 SP - 55 EP - 72 SN - 1229-8638 AB - The purpose of this study is as follows: first, to examine the significance and characteristics of refinancing and restructuring of private investments on social overhead capital facilities by analyzing projects which have been carried out within the last 5 years; second, to study the effects of refinancing and restructuring on government and users, as well as their impact on potential risks and investment returns for concessionaires; third, to suggest improved methods of refinancing and restructuring in order to better address issues mentioned. The followings are results of analyses: First, in case of refinancing, the calculated public effects on variance of sales showed in the range of 6~24%, and in case if restructuring, between the range of 22~47%, higher than the former. Public effects is calculated by variance of sales, because rate cut and reduction of MRG by refinancing or restructuring all leads to a decrease of sales. Second, considering the risk factors and costs, when projects include the MRG system for the entire duration of operation, restructuring rather than refinancing proved to be more effective for the administrative agency. However, when the coverage of MRG system is limited, the outcomes vary depending on factors, such as the volume of traffic and options of rate increase. Third, the return on investment concerning investment opportunities in the private sector, refinancing cases appears to be higher by about 2.0%, represents risk premium on demand forecast. Finally, as for ways to make improvements for the existing methods, in case of refinancing, predictability for private investors need to be improved together with institutional modifications, which induce positive public effects and protect the rights and interests of the existing concessionaires. In case of restructuring, establishment of a new system for evaluating demand forecast as well as validity of projects should be considered. Moreover, the new system should include the option of paying compensation to investors even if the sum exceeds termination payment of implementation agreement, if doing so leads to greater public value. KW - Build Transfer Operate(BTO);Minimum Revenue Guarantee(MRG);Refinancing;Restructuring;Shared Interests;Public Effects DO - 10.15793/kspr.2016.89..004 ER -
조혁종, 남윤길 and 김형진. (2016). The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects. The Korea Spatial Planning Review, 89, 55-72.
조혁종, 남윤길 and 김형진. 2016, "The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects", The Korea Spatial Planning Review, vol.89, pp.55-72. Available from: doi:10.15793/kspr.2016.89..004
조혁종, 남윤길, 김형진 "The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects" The Korea Spatial Planning Review 89 pp.55-72 (2016) : 55.
조혁종, 남윤길, 김형진. The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects. 2016; 89 55-72. Available from: doi:10.15793/kspr.2016.89..004
조혁종, 남윤길 and 김형진. "The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects" The Korea Spatial Planning Review 89(2016) : 55-72.doi: 10.15793/kspr.2016.89..004
조혁종; 남윤길; 김형진. The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects. The Korea Spatial Planning Review, 89, 55-72. doi: 10.15793/kspr.2016.89..004
조혁종; 남윤길; 김형진. The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects. The Korea Spatial Planning Review. 2016; 89 55-72. doi: 10.15793/kspr.2016.89..004
조혁종, 남윤길, 김형진. The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects. 2016; 89 55-72. Available from: doi:10.15793/kspr.2016.89..004
조혁종, 남윤길 and 김형진. "The Analysis on the Characteristics and Effects of the Refinancing and Restructuring of Build-Transfer-Operate(BTO) Projects" The Korea Spatial Planning Review 89(2016) : 55-72.doi: 10.15793/kspr.2016.89..004
