earticle

영어

PPPs can be classified by the legal nature of private-sector involvement in the Facility, using expressions such as BOT(build, operate and transfer), BTO(build, transfer and operate), BTL(build, transfer and Lease), DBFO(desig, build, finance and operate) and variants on these.
The Act on Private Participation in Infrastructure regulates mainly BTO type and BTL type(known in Korea as Operation PFI type). BTO type, under which ownership of the Facility is transferred to the Public Authority on the completion of construction and the Project Company is awarded the right to operate the facility for a certain period, is the prime example of a PPP. BTL type, where ownership of the Facility is transferred to the Public Authority on the completion of construction and the Project Company being awarded the right to operate the facility lease it to the Public Authority for a certain period, is Operation PFI type of a PPP.
This article reviewed the issues related to BTO type and BTL type in Korean legal system.
Firstly, this article researched whether or not the Public Authority has to take the responsibility of acquisition of the site. It is appropriate for site acquisition to be the responsibility of the Public Authority, because this involves acquiring larges areas of land in multiple ownership, unforeseen cost increase for site acquisition and there is any political controversy on the location of the Facility.
Secondly, the study reviewed whether it is appropriate for the Project Company to own the public Facility for the duration of the construction, and the ownership of the Facility can be transferred to the Public Authority on the completion of construction.
For those projects such as roads, tunnels, ports and rail network built on the public land, BTO type and BTL type are in conflict with the Law of Realty of Korea.
Finally, considering the issues related to BTO type and BTL type, the study examined DBFO type under which legal ownership of Facility remains with the Public Authority throughout the contract as the Alternative.