• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.10
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• pp.2907-2916
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• 2009

PPPs(Public Private Partnerships) in Korea was introduced in 1990s, which mainly used for providing transportation facilities such as railroad and high-way. Since 2005, a service delivery type PPPs, in other words BTL(Build Transfer Lease) has been implemented, which focused on social infra-structure including school, military housing, and sewage facilities. According to previous literature, efficient risk evaluation and management is the key factor for successful PPPs in the UK and Australia. However, Korea doesn't have proper risk evaluation system for PPP type project. In this paper, we explore and analyze risk evaluation system of PPPs in Korea and other countries. Also, we apply empirical methodology used in the UK to a BTL project and set up a new PSC(Public Sector Comparator) with risk evaluation.

• Korean Journal of Construction Engineering and Management
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• v.10 no.1
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• pp.45-57
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• 2009

BTL (Build-Transfer-Lease) Project for Education Facilities are contracted as a package which consists of several education facilities. The general maintenance period of BTL project for education facilities is 20 years. Thus, total cost variation largely depends on the accuracy of the maintenance cost forecasting in the early stage in the life cycle of the BTL Project. This research develops a cost forecasting system using complete linkage algorithm and branch & bound algorithm to help in finding optimal bundling combination. This system helps owner's decision-making to estimate the total project cost with various constraints changing. The result of this research suggests more reasonable and effective forecasting model for the maintenance facilities package in the BTL project.

• Korean System Dynamics Review
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• v.12 no.4
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• pp.35-62
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• 2011

PFI(Private Finance Initiative) for suppling SOC and public facilities instead of Government Infrastructure Project introduced from 1994. BTO(Build-Transfer-Operate) project had been major type of PFI system from 1994 to 2005. But after changed the Law of PFI on SOC, the BTL project newly introduced. In BTO system, the Government retrieves the investment through the operating income, but in BTL system, the government lease the facilities. As the BTO and BTL projects are widely adopted and implemented to ease the fiscal burden of government, but it has caused the tremendous fiscal burden each year over the period operation. Therefore this study attempted to analyze the question, that is, why government fiscal burden tipping? Hence, this paper, compares the difference of business structure between BTO and BTL project and explore the vicious and virtuous business structure, with the method of circular causal loop analysis. As a result, it has shown that there are some positive feedback and negative feedback loops cause the tipping and easing of government fiscal burden.

• KDI Journal of Economic Policy
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• v.35 no.3
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• pp.1-38
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• 2013

This study investigates the welfare implications of BTL projects using a general equilibrium model with the public sector and public-private partnerships. We show that when the government is not allowed to run budget deficits but private firms is able to overcome the financial constraint, BTL projects performed by public-private partnerships (PPPs) could be a good alternative and improve the welfare of the model economy. This paper quantitatively investigates excessive expansion of PPP projects and several alternatives to retrieve welfare losses caused by such an expansion. Assuming that future rents of BTL projects are not taken into account, we find the welfare losses up to 20 percent relative to conventional government projects. Finally, we show that it would be possible to reduce the losses by transforming the fully depreciated capital stock of the government projects into much smaller new PPP projects.

• Korean Journal of Construction Engineering and Management
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• v.14 no.3
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• pp.167-175
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• 2013

In 2005, the government introduced BTL(Build-Transfer-Lease) projects as one of the methods of private investment in infrastructure. In a BTL project, a private company builds a public facility and leases it to the government to withdraw its invested capital. But there appear several problems with it due to a short period of preparation and lack of experiences. Specifically, private companies that plan to participate in this project have to take a risk since serious problems are likely to take place because of unrealistic estimation of construction costs, etc., and they finally avoid participating in this project. A case study was made over advanced countries, Japan and the United Kingdom, to find out how to resolve the problems, and rational 7 improvement method were presented from a perspective of Special Purpose Company (SPC), which could be accepted by both of SPC and government agencies. The findings of the study are expected to provide workable solutions to BTL projects from a standpoint of private companies to facilitate the rational improvement of BTL projects, and this study is ultimately expected to stimulate the active participation of SPC to make a contribution to the vitalization of domestic BTL projects.

• Journal of Korean Society of Water and Wastewater
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• v.24 no.6
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• pp.743-751
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• 2010

It requires an interim performance assessment for BTL business of the sewerage rehabilitation which continues from 2005 till now. Means, It is necessary to make an interim performance assessment and an analysis of an business effect of the sewerage rehabilitation BTL projects which still continues, and we presented an improvement method of the new sewerage rehabilitation project in future. This paper has conducted an analysis of the business effect for 3 local government BTL projects which are completed and under operation as of now in Jincheon-Gun, Cheongju-Si and Gangjin-Gun. As a method of business effect analysis, we conducted a business effect of the 3 places using the index set which we previously set for the business effect analysis. The index set in this research was sectionalized to an improvement effect of operating wastewater treatment plant, an benefit effect of the direct cost, an benefit effect of the indirect cost and an environment friendly effect. We, in this paper, conducted an business effect analysis for 3 sewerage rehabilitation BTL projects which are completed or under operation recently as a demonstration, however we judge that an business effect analysis shall be conducted in a stage that a significant time for operation has passed since the completion of the construction in order to induce an actual business effect of the sewerage rehabilitation BTL project.

• Korean Journal of Construction Engineering and Management
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• v.13 no.5
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• pp.53-63
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• 2012

Korean Public-Private Partnership, mainly implemented using BTO (Build-Transfer-Operate) and BTL (Build-Transfer-Lease) methods, has contributed in increasing benefits of the people by providing the needed public services in a timely and efficient manner. It has also induced flexible national fiscal management. However, in addition to the repeal of the Minimum Revenue Guarantee (MRG) program in 2009, changes in business environment including recent financial crisis aggravated financial situation in pursing PPPs, resulting in significant contraction of BTO projects. Therefore, the new methods are to be suggested and applied to overcome this situation. This paper seeks to find ways to apply "Mixed Model," characterized as the compound of BTO and BTL, two different implementation methods of PPPs, as an enhanced burden-sharing mechanism.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.58-63
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• 2006

In the recent years, the government pay more interested in BTL projects, this led to rapid growth of BTL projects. But the project stakeholder has encountered with some problems during initial phase. As a result, a distinct need has emerged for analysis of risk factors for BTL projects. Based on real cases, this study resulted in risk factors influencing every phases and grouped risk factors into each phase. In addition, this study also perform sensitivity analysis in order to know how risk factors affect to BTL projects. Moreover, the result of this study can be used as a tools for anyone who study or encounter the same problems in the future. The paper can be used as standards for risk assignment that occur between competent authorities and private enterprises.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2013.11a
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• pp.204-205
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• 2013

The rational Management of the school facilities will be able to minimize the waste of budgets, enhance total values of facilities. The purpose of this study is to propose promotion plans of the private infrastructure investment in the school facilities not only for contemplating obstacle reasons of BTL projects, but also for gripping contents about process of BTL projects. To achieve these objectives, this study 1)analyzes the major trend about private infrastructure investment, and 2)suggest extended suggestions for minimizing problems in the process of BTL projects in school facilities.

• Journal of the Korean Institute of Educational Facilities
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• v.15 no.3
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• pp.4-16
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• 2008

BTL(Build-Transfer-Lease) Project for Education Facilities is contracted as a package which consists of several education facilities and its maintenance period is 20 years. Thus, total cost variation largely depends on the accuracy of the maintenance cost forecasting in the early stage in the life cycle of the BTL Projects. This research develops a method using complete linkage algorithm and branch & bound algorithm to help in finding optimal bundling combination. The result of this research suggests more reasonable and effective forecasting method for the maintenance bundle in BTL projects.