This report analyses the expense limit for the 2011 fiscal year and the estimated government payments from 2010 to 2014 on the Build-Transfer-Lease (BTL) proj-ects, in order to support the deliberation on the budget in the National Assembly. The Act on Private Investment in Infrastructure has been amended thanks to the constant suggestions on the necessity of financial control by the National Assembly on BTL projects since the projects bring financial burden upon the government in the long term. According to the amendment, not only the expense limit but also the estimated government payments on BTL projects shall be presented to the National Assembly from 2010.
The expense limit for the 2011 fiscal year amounts to 370.4 billion won (1 trillion and 220.4 billion won including projects solely implemented by local governments). The government payments will be approximately 2 trillion and 894.8 billion won if all the agreements reflected in the expense limit for 2011 fiscal year is concluded. In this report, analyses classified by facilities have been also carried out. According to the results, there are several cases which did not fully consider the financial burden of local governments and did not carry out appropriate feasibility investigation on BTL projects. Moreover, the representation of successful bid rate applied to the com-putation of construction expenses was not reliable in some projects.
In the results of analyzing the estimated government payments, the total finan-cial burden upon government is expected to be 8 trillion and 186.6 billion won in the case of rearranging calculation basis by including charge of local governments for the BTL projects promoted from 2005. It is noticeable from the analysis that in-cluding the charge of local governments in the estimated government payments is worth consideration to understand comprehensive financial burden of both central and local governments.
The National Assembly Budget Office does hope the report will be used in the deliberation on the budget by providing latest information on the BTL projects to Members of National Assembly and eventually contribute to the appropriate execu-tion of budget to accomplish the efficient management of the national finance.
The expense limit for the 2011 fiscal year amounts to 370.4 billion won (1 trillion and 220.4 billion won including projects solely implemented by local governments). The government payments will be approximately 2 trillion and 894.8 billion won if all the agreements reflected in the expense limit for 2011 fiscal year is concluded. In this report, analyses classified by facilities have been also carried out. According to the results, there are several cases which did not fully consider the financial burden of local governments and did not carry out appropriate feasibility investigation on BTL projects. Moreover, the representation of successful bid rate applied to the com-putation of construction expenses was not reliable in some projects.
In the results of analyzing the estimated government payments, the total finan-cial burden upon government is expected to be 8 trillion and 186.6 billion won in the case of rearranging calculation basis by including charge of local governments for the BTL projects promoted from 2005. It is noticeable from the analysis that in-cluding the charge of local governments in the estimated government payments is worth consideration to understand comprehensive financial burden of both central and local governments.
The National Assembly Budget Office does hope the report will be used in the deliberation on the budget by providing latest information on the BTL projects to Members of National Assembly and eventually contribute to the appropriate execu-tion of budget to accomplish the efficient management of the national finance.