1
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
5
□ 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
6
□ Seal Investment Contract
□ Funding Strategy
→ Equity – Paraguay government & Korean in-vestors → Loan – Loan capital from Korea or Paraguay
Paraguay
7
□ 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
8
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
