Needs for Management Implementation Plan for Private Investment Projects and Required Tasks

Research Fellow Sungsoo Kim, Assistant Research Fellow Hyun Jeong

Summary

1. The management implementation plan is an administrative plan which determines the sustainability of facilities that have expired from the establishment period of management rights, and the way of business execution in the future, and must be established for all social infrastructures conducted under private investment projects by laws

2. The current situation, 20 years since the introduction of the private investment project system, is the beginning of the expiration of the establishment period of management rights for social infrastructure, and more than 300 private investment projects to be expired from 2019 to 2032

3. Due to the current government’s policy stand for securing the sustainability of social infrastructure, to be highlighted the importance of management implementation plans which focus on the effective maintenance and repair of facilities under private investment projects

4. The management implementation plan reviews ‘physical sustainability’ and ‘political needs’ of facilities to determine whether to maintain continuously the social infrastructure three years before the management operation right expires

5. In case to decide to maintain social infrastructure, to decide one effective method from four different business execution methods (new built, expansion or revamping, private entrustment, government direct, sale or disposal)

6. The management implementation plan is meaningful in that it proposes a reasonable plan for providing public service to the public on the basis of social infrastructure after expiration of the management operation right and evaluates the performance of the facility operation

Required Tasks

1 (Demand Side) As it is expected that the number of establishment requests for management implementation plans will increase steadily, it is necessary to prepare for the reestablishment requests to be concentrated in a specific period(2028 ~ 2029).

2 (Management and Operational Sides) As the establishment of management implementation plan is a plan in which many participants are involved from competent authorizes, project operates, and specialized institutions, etc., understanding of the role of each participant is important. 

3 (Institutional Side) As the current guidelines for establishing the management implementation plan proposed by the government are insufficient of the review items and the breakdown of judgment criteria, it is necessary to propose detailed guidelines for social infrastructure by type.