Seoul’s private investment projects have been pushing for new, large-scale projects from cooperation between the government and the private sector. Recently, it has been under a new paradigm: diversifying projects on profit models for Public-Private Partnership projects, compounding facilities and small-scale construction projects in large-scale construction projects.
In 2019, the MOEF(Ministry of Economy and Finance) expanded the number of specialized institutions that review and evaluate PPP projects from one place to others, making it necessary to set up a manual that characterizes the projects in Seoul. Therefore, most users of this manual will be Seoul officials and public-administration agencies that manage PPP projects. This manual can also be used as the government’s guideline to explain project plans, evaluations, negotiations, construction, and operation of PPP projects in Seoul.
The details of this manual are as follows.
In the project-planning and review phase, the PPP project will review the legal adequacy of the facilities and conduct the VFM (Value for Money) test to see if the facility is valid. This manual describes the methods, contents, and procedures of the VFM test, and quantifies the policy-evaluation items using AHP (Analytic Hierarchy Process) analysis in addition to the economic analysis.
In the RFP (Request for Proposal) establishment phase, the assessment contents for selecting preferred negotiating partners for the project and the manual for the project contents of proposal were presented. In addition, the manual of the assessment step detailed the recruitment of evaluators, and the composition and role of evaluators for project evaluation.
The negotiation manual examined the examples of agreements to implement the PPP project that were signed. Based on this, the government’s role in the negotiations and major issues in the negotiations were presented. In addition, this manual provided an efficient way to shorten the negotiation period.
The project-completion and operation stage manual explained the current status and issues of refinancing and restructuring, and presented the government’s management and supervision of the completion of the operation.