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A Study on Negotiation Strategies and Concession Agreement for PPP Projects in Cultural Facilities: Focusing on Performing Arts Facilities (Build-Transfer-Operate, BTO)

Joo, Jae-HongㆍBan, Dong-Inㆍ Woo, Sang-Mi

This study aimed to determine negotiation strategies and solutions specific to performing arts facilities based on the experience of negotiating public-private partnership (PPP) project for Seoul Arena. This study also aimed to create a standard concession agreement for PPP projects for performing arts facilities. Results of this study could contribute to the rational and effective negotiation process of future similar negotiations as a reference.

PPP project negotiation is an important process. It determines main conditions and risk distribution for the project between the relevant government agency and the project executor to sign a concession agreement for project implementation. When performing PPP project for performing arts facilities, there are significant differences not only in the characteristics of facilities, but also in the negotiation points compared to transportation facilities such as roads and railways which have mainly been executed in the past. Therefore, it is necessary to reflect these characteristics in the standard concession agreement.

This study aimed to understand the characteristics of cultural facilities and review examples of PPP projects. In addition, in-depth interviews were conducted with participants in actual negotiations. The main result was that the negotiation goal of cultural projects was to balance public interest and profitability.

In summary, this study presents the negotiating process for performing arts facilities, negotiation strategies for each detailed field and examples of drafting standard concession agreements.