Mutual Development of Korea and Kazakhstan Based on Public-Private Partnerships and Promotion of Development Projects Lee Youn-ho Ambassador 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 ad ministrative practice. Division of jobs between a ‘public authority’ and a ‘private party’ in public service, usually fully re sponsible 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 Kazakhstan 1) 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