PRIVATE PARTICIPATION IN THE INFRASTRUCTURE PROGRAMME OF THE REPUBLIC OF KOREA

The Private Participation in Infrastructure (PPI) programme of the Republic of Korea was formally launched in 1994. The limited success of the initial efforts and budgetary constraints after the Asian financial crisis of 1997 prompted the Government to take new initiatives in this area. A new PPI law was adopted in 1998, establishing the Private Infrastructure Investment Center of Korea in 1999. The Center acts as a special arm of the Government for the promotion of private sector participation in infrastructure sectors. These initiatives, along with other major reforms in the economy, have helped the renewed PPI programme to make tremendous progress. By March 2003, 130 projects were being implemented. Contracts involving $ 13 billion of domestic and foreign capital have been awarded. Against this background, this paper provides an overview of the Republic of Korea’s PPI programme, its history, successes and failures, and unique features