Mutual Development of Korea and Kazakhstan Based on Public-Private Partnerships and Promotion of Development Projects

Lee Youn-hoAmbassador for International Economy and Trade Ministry of Foreign Affairs and Trade, Republic of Korea 

I Notion of Public-Private Partnership(PPP) in Korea

II Types and Specific Cases of PPP in Korea

III Legislative Improvement for the Promotion of PPP in Korea

IV Recommendations to Kazakhstan for its promotion of PPP

1. What is PPP?

•A new way of operating the government’s administrative practice.

•Division of jobs between a ‘public authority’ and a ‘private party’ in public service, usually fully responsible by a public authority

Win-win results for both a ‘public authority’ and a ‘private party’

2. What are the benefits of PPP? Public Sector• Quality Improvement • Cost-saving

Private Sector• new business opportunities• job creation

Contributes to economic vitality in the nation

1. Major types of PPP

•Outsourcing of government

affairs

•Joint venture

•assistance for the private sector

2. PPP vs. Privatization

Privatization

•Complete replacement of a public authority in public service by a private party

•Private Party takes over the ownership and operating right

PPP

•Private party mainly takes over the ownership and operating right

•BUT, the Public sector still retains enough authority, in order to prevent abuse of monopolistic position by the private party

3. Possible Areas of PPP Application

•At a domestic level - Welfare, Environment, Culture, Policy, Public Relations, Anti-Corruption, Employment, Budget, IT Sector, etc.

•At an international level - financing and supporting of development projects in developing countries

4. Specific Cases of PPP in Korea•Training Program for agricultural leaders

from Mongolia• Joint management of overseas volunteer

activities by both public and private sectors•Winning the bid for nuclear power plants in

Dubai•Developing the “BRIDGE” program in Africa•Construction of the Korea-Cambodia

Friendship Road•Enhancement of ‘Knowledge Sharing

Program(KSP)

1. Goal•T0 Maintain consistent and stable operation of PPP

2. Laws and Regulations for PPP in Korea• Act on Public-Private Partnerships in

Infrastructure

• Framework Act on International development cooperation

3. Areas for further development •Establishment of a framework act for PPP

•Introduction of new procedural laws and regulations to expedite the process of PPP

•Revision of existing laws to demand joint liability for loss or damage caused by PPP projects

1. Korea-Kazakhstan Relations•elevated to a ‘strategic partnership’ in May

2009

•actively have cooperated, especially in the energy and natural resources development sector

•now, try to expand the scope of cooperation into healthcare, science, IT sector, etc.

2. Good examples of PPP between Korea and Kazakhstan•Deployment of working-level experts to Kazakhstan

to improve the nation’s electricity efficiency

•Establishment of the Korea-Kazakhstan Technology Cooperation Center in Daedeok Science Town, Korea, to support industrial diversification in Kazakhstan

•Pilot projects for solar power generation in Kazakhstan

•Knowledge Sharing Programs in Kazakhstan

3. Recommendations to Kazakhstan1) National directions for PPP projects to be

publicized

2) Not one-time development projects, BUT, consistent and long-term cooperation at a

national level to be pursued

3) legislative improvements to facilitate the participation of private parties or other countries in PPP projects