• Korean Journal of Construction Engineering and Management
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• v.7 no.3 s.31
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• pp.94-101
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• 2006

Since 'Private Investment Act for Social Infrastructure Facilities' were changed in January 2005, BTL projects have been activated in the market. Nevertheless, several problems have been indicated as to the BTL system. Most of these problems are about the choice and scale of the target facilities and the reasonable rate of return allowed to the private investors, which are directly related to the VFM (Value for Money) analysis for the BTL projects. This study discusses the concepts and the methodologies of the VFM analysis, reminds its importance by investigating current problems of the BTL system concerned with the analysis, and suggests useful implications and alternatives through the case studies on the four ongoing BTL projects for the educational facilities.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2008.11a
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• pp.615-618
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• 2008

From the 2006 report of Korea Foundation for the Promotion of Private school(KFPP), Private college account for 97% and private university account for 79% of the all college in country. The report shows that private college invest in educational facilities about 200 million won every year. But the standard of investment analysis which is for the private business of private college is not arranged, private college could not make progress the business. Accordingly the research is suggested "eligibility analysis method theory" that is a basic to make decision. At first in case of Quantitative VFM analysis, we suggest alternative analysis & progress procedure in analysis step. And in case of qualitative VFM analysis, we developed 15 items of analysis which is made with professional interviews.

• Korean Journal of Construction Engineering and Management
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• v.8 no.5
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• pp.92-100
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• 2007

PFI(Private Finance Initiative) Project is carried to expand infrastructure effectively through participation of private investment. From the year 2005, the range is expanded not only industrial infrastructure such as made road, harbors and so on but living infrastructure such as school facilities, environmental facilities. For this reason BTL(Build-Transfer-Lease) system is mainly used in new private finance initiative project but in existing private finance initiative project BTO(Build-Transfer-Operate) system was used. BTL system is operated to judge fitness of private investment and classified into quantitative VFM(Value for Money) and qualitative VFM. In this research the estimation item of qualitative VFM which is hard to deduce the effect is created and after surveying of questionnaire in target of experts, relative importance and weight is established with AHP(Analytic Hierarchy Process). By estimating efficiency and benefit of quantitative VFM and qualitative VFM aspect effectively it is expected to support a rational making decision for operating BTL.

• The Journal of Sustainable Design and Educational Environment Research
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• v.6 no.1
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• pp.60-84
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• 2007

This study purpose is seeing that the independent standard sufficiently reflecting the characteristics of the school facility as the basic material needed to calculate the maintenance and repair expenses is needed to make a more realistic and valid qualitative VFM analysis of the school BTL project. this study attempted to develop the standard for the repair cycle and rate and economic year of the school facility. The quantitative VFM analysis should be conducted based on the repair cycle and repair rate proper to the school facility, not the residential space, when calculating the maintenance and repair expenses of the operating expenses of the school facility. An attempt was made to calculate the repair cycle, repair rate and economic life of 114 component materials of the school facility judged to be able to explain the school field best. And it was confirmed that the repair and maintenance expenses more is needed to be set by about 35% than the existing maintenance and repair expenses.

• Korean Journal of Construction Engineering and Management
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• v.8 no.4
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• pp.73-80
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• 2007

As BTL(Build-Transfer-Lease) private investment business benchmarking PHI(Private Finance Initiative) of USA and Japan is introduces to Korea since 2005, as a part of supplying high leveled public service and early expanding required facilities for SOC, Value for Money on private investment business from treasury investment business at the beginning gets to be needed. Accordingly, this survey has been conducted in order to analyse BTL projects status, propriety of economic analysis method(VFM analysis, calculation of estimated business expenses, valuation of bidding price, etc.) by business advance phases from the viewpoint of person in charge, necessity of improvement and alternative plants. As the result of conducting cross tabulation analysis and correlation analysis by occupational group, BTL project advance phases and alternative plans for improvement, it is necessary ye prepare standardized service level against business expense and basis for calculating and evaluation operation expenses. Based on the necessity of quantitative analysis (LCC analysis) of VFM, standard for calculating management, maintenance and administration expenses is required. In addition, reliable economic valuation system considering domestic BTL environment should be setup, for business efficiency.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.35 no.3
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• pp.1-6
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• 2012

This paper aims to suggest a validity analysis model that would be helpful for local governments considering u-City construction projects and a methodology for them to promote build-transfer-lease (BTL) u-City projects. This methodology mainly uses quantitative and qualitative analysis based on the Value For Money (VFM) designed by the Public and Private Infrastructure Investment Management Center (PIMAC) under the Korea Development Institute (KDI). BTL projects requires a large amount of capital and involves long-term investments. Therefore, multi-faceted validity analysis is required for the success of a project. This study will enumerate various factors to be considered in the pre-analysis of validity of BTL projects and suggest a methodology to verify them. A case study of a BTL project promoted by Ansan City assisted in designing this study in detail.

• Journal of Korean Society of Transportation
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• v.25 no.1 s.94
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• pp.49-59
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• 2007

This study has examined the allocation of risk in Korea's private provided Infrastructure(PPI) with the following contents (1) Developing a quantitative risk allocation model for Korea's PPI and (2) examining the implication of changes in the minimum revenue guarantees (MRG) clause of government legislation using the developed empirical model. The model of this study adopts and extends H. Yamaguchi's model developed in 2002. To investigate Korea's actual risk allocation deals, the author incorporated the MRG framework. The payment related to the MRG is indeterminable. Hence. the average MRG rate was calculated using probabilistic risk analysis. The risk allocation model is applied to the two eases to validate the model and evaluate the project's VFM(Value for Money). As the revenue guarantee rate is lowered, the government subsidies are increased. This in turn worsens VFM. The same relationship is true when the revenue guarantee Period is shortened.

• Korean Journal of Construction Engineering and Management
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• v.8 no.5
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• pp.132-141
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• 2007

According to the public information of the Ministry of Education & Human Resources Development, the construction project of educational facilities from 2005 to 2007 will use BTL (Build-Transfer-Lease) contract. Budget of those projects will be the worth over 13 trillion won. In this research, the estimation standards for the public health maintenance expenses are established which is the part of the operation and maintenance cost in the total BTL project cost. Also, a system core module using the developed standard was introduced in this paper. A comparative analyses were conducted with the several possible estimation case to validate the system developed.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.111-116
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• 2006

The objective of this research is to develop an assesment system for BTL Project. A new method for the prediction of construction and maintenance cost in the educational facilities has been considered and under development by the authors. This paper explains the current BTL assesment method used by most local district office of education and lists its potential problems. Main conceptual modules in the new Assesment System are shown in this paper. Also, viable results of each module are discussed in this paper.

• 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.