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A Study on Application of Minimum Cost Support for Financial Re-structuralization of Act on Private Participation in Infrastructure

  • Public Land Law Review
  • Abbr : KPLLR
  • 2014, 65(), pp.293-310
  • Publisher : Korean Public Land Law Association
  • Research Area : Social Science > Law

이재오 1 Hwang, Taik Jean 2 KANG JEONG GYU 2

1(주)엘시티
2동의대학교

Accredited

ABSTRACT

Korea government introduced MRG (Minimum Revenue Guarantee) which minimizes risk of private participation in infrastructure (PPI). However, This policy has been criticized for heavy burden of government. Subsequently, This system gradually decreased and finally MRG was abolished in October, 2009. Since then, Investment Risk Sharing replaced MRG and It is only for government announced PPI. Currently, Therefore BTO Project is declining substantially. In this study, in order to explore the ways in which improve feasibility of financial structure for PPI Project, 3 PPI Projects that are constructed under the MRG are analyzed. Furthermore, MCS (Minimum Cost Support) that allows minimum cost of private participation in infrastructure is proposed upon development of SCS (Standard Cost Support) which is widely being used for re-structuralization of PPI Project by centering on Investment Risk Bearing, Investment Risk Management System in domestic PPI Projects. Lastly, Re-structuralization measurements are analyzed and proposed effects.

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