Sasang~Haeundae Expressway and Daejang~Hongdae Metropolitan Railway Pass Private Investment Project Review Committee

Industrial Infrastructure Credit Guarantee Fund Guarantee Limit Raised from 500 Billion to 700 Billion Won

[Asia Economy Sejong=Reporter Kwon Haeyoung] The designation agenda for the Busan Sasang~Haeundae Expressway and Daejang~Hongdae Metropolitan Railroad projects has passed the Private Investment Project Deliberation Committee. In response to rising interest rates, the government will raise the guarantee limit of the Industrial Infrastructure Credit Guarantee Fund from the current 500 billion KRW to 700 billion KRW to support the activation of private investment projects.

On the 6th, the Ministry of Economy and Finance held the "3rd Private Investment Project Deliberation Committee of 2022," chaired by Second Vice Minister Choi Sang-dae, and deliberated and approved four agenda items including these projects.

The approved agenda items are private investment projects promoted as follow-up measures to the "Private Investment Activation Plan" announced by the government at the end of June. These include ▲ appropriateness of facilities for the Gyeonggi-do public electric vehicle charging facility private investment project ▲ designation of the Sasang-Haeundae Expressway project and third-party proposal announcement ▲ designation of the Daejang-Hongdae Metropolitan Railroad project and third-party proposal announcement ▲ designation of the Pyeongtaek Tongbok Public Sewage Treatment Facility modernization project and third-party proposal announcement.

Among these, the Daejang-Hongdae Metropolitan Railroad project is the first to combine the 'BTO method,' where investment costs are recovered through user fees paid by facility users, and the 'BTL method,' where investment costs are recovered through rents and other fees paid by the state and local governments. The public electric vehicle charging facility, designated as a private investment project for the first time, signifies the expansion of private investment targets beyond transportation infrastructure to various facilities including industrial infrastructure.

The government will strengthen financial support for private operators facing difficulties in funding due to rising interest rates by raising the guarantee limit of the Industrial Infrastructure Credit Guarantee Fund from 500 billion KRW to 700 billion KRW. The amendment to the Enforcement Decree of the Private Investment Promotion Act will complete its legislative notice by the 7th and aims to finalize the revision by November.

Vice Minister Choi emphasized, "Since next year's budget is organized to solidify SOC investment, the role of private investment has become very important," adding, "The government will continue efforts to activate private investment projects so that they not only strengthen fiscal capacity but also provide superior public services in a timely manner by utilizing private creativity and efficiency."

This content was produced with the assistance of AI translation services.