case study of korea s.o.c. development in relation to development of paraguay at first symposium on...
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Case study of Korean development over the last sixty years during the international symposium entitled, "Towards an Alliance between Paraguay and Korea" held in greater Asunción, Paraguay, June 17, 2014. For more visit: http://www.globalpeace.org/images/news/news-2014/Paraguay/international-symposium-towards-an-alliance-between-paraguay-and-koreaTRANSCRIPT
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Korea VS Paraguay
Global SymposiumKorea S.O.C Case
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Index
3Paraguay
□ Based on Korea’s experiences of economic development and pro-
fessional knowledge, help S.O.C development in Paraguay
□ To achieve the goal, Introduce initial stage of S.O.C development
case of Korea
□ Study recent successful S.O.C cases to arrange concrete plans
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□ Establish Investment Plans and Feasibility Review
• Conclude MOU with local partners
• Consult investment sourcing
• Constitute investment review advisory (Bureaucrat, Public
enterprises, Bank, Law office, Professional investment institutions)
• Identify law and institutional investment barriers and examine solutions
• Large-scale S.O.C development or small-scale pilot project
investment review
Paraguay
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□ If required rate of return is lower than economic feasibility, the
government or international organizations should assure Mini-
mum Revenue Guarantee(MRG)
□ Need credit enhancement from organizations which have
credit ratings over investable grade (above BBB+)
Paraguay
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□ Seal Investment Contract
□ Funding Strategy
→ Equity – Paraguay government & Korean in-vestors → Loan – Loan capital from Korea or Paraguay
Paraguay
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□ Management of Investment Asset
• Development : Managing S.O.C development
construction, quality control, safety supervision
• Management : Maintenance, collecting fees, and
distribution of profits
• Withdrawal of the principle : To Be Determined
Paraguay
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Division 1968 2013GDP Appx. $5.95billion $1,304billion
Road Extension Length 35,000km (6.5% paved)106,000km (82%
paved)*During Construction, it was a big national project taking up 23.6% of national budget. (per capita income=$142)
□ SOC Development Case Presentation
1. Gyeongbu Expressway
• Length : 425Km (Seoul to Busan)
• Period : 1968.2~1970.7 (2 years and 5 months)
• Expense : Appx. $136million
• Effect : Connecting the 1st city and 2nd city of Korea by the expressway to boost economic vitality and growth
Paraguay
9Paraguay
□ Private Investment Case Presentation
2. Incheon Road Bridge
• Length : 21.4km (Bridge: 18.4km)
• Period : 2005.7 ~ 2009.10 (52 months)
• Methods : Private investment- Marine bridge (12.3km)
National investment- Connecting road between Songdo
international business district and Yeongjongdo island (9.1km)
• Note : The longest bridge in Korea, the 1st Foreign pri-vate
investment of S.O.C
• Expense : $2.38billion
10Paraguay
□ Private Investment Case Presentation
2. Incheon Road Bridge – Project Route Map
Yeongjongdo island
Songdo Interna-tional Business Dis-
trict
11Paraguay
□ Private Investment Case Presentation
2. Incheon Road Bridge – Financing
Gov-ern-mentPrivate
$0.86bn
$1.52bn
Construction Expenses: $2.38billion
Private Capital $0.77bn
Government Sub-sidy $0.75bn
51%
49%
12Paraguay
□ Private Investment Case Presentation
3. Incheon Airport Railroad
• Length : 61km
• Period : 1st stage- 2001~2007, 2nd stage: 2004~2011
• Facilities : Incheon International Airport ~ Seoul Station
(10 stations, 1 city airport)
• Expenses : $4.5billion
*Private investment- Investors fund owned capital and the
government aids subsidy and assures Minimum Revenue
Guarantee
13Paraguay
□ Private Investment Case Presentation
3. Incheon Airport Railroad – Project route map
Seoul
Incheon
14Paraguay
□ Private Investment Case Presentation
3. Incheon Airport Railroad – Financing
$0.93bn
$0.84bn$2.58bn
$0.19bnOwned Capital
Govenment Subsidy
Borrowed Capital
1st Traffic Receipts
Construction Expenses: $4.54billion
(21%)
(19%)
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Thank you