1. 1 Choi, Mihee 2008. 8. 11 Multi-criteria analysis on Decision-Making Process in Public Investment in case of road construction project in Korea

2. I.Introduction II. Multi-Criteria Analysis in Decision- Making Process - Environmental cost-benefit analysis as EIA - Stakeholder participation III. Decision-Making Process Problem in Public Investment IV. Case Study V. Lession Contents

3. 3 Study Point and Methodology

4. 4 Focus on three categories Positive Impact on the Environmental/ Economical Efficiency -Positive impact on the environment, EIA -Economically efficient, CBA Study point and Methodology used Various Factors and their Priorities -Consideration of the various factors and priorities, MCA Stakeholder’s Opinion -Reflection on stakeholders’ opinion in EIS, PI

5. 5 Decision-Making System in SOC investment

6. 6 Decision-Making Process in Korea Environmental Impact Analysis (EIA) Decision-making System in SOC construction, Korea Stakeholder Participation: Public Involvement (PI) Cost-Benefit Analysis (CBA) To minimize economical damage To get rid of disbelief of administration

7. 7 Case Study Chuncheon-Yangyang Highway Construction Project

8. 8 Information of Baekdudaekan Ecosystem Case study of Chuncheon-Yangyang Highway

9. 9 Pressure of Development on Baekdudaekan Development Project: - Until currently, large-scale project have continued. - Mines, dams, routes, leisure facilities, farmland, etc. - Ecosystem has been destroyed on a large scale by projects. - 8% of Baekdudaegan has been damaged. Case study of Chuncheon-Yangyang Highway Road and Railroad in Baekdudaekan -There are a lot of roads. -30 Pavements, 3 railroad and 20 forest roads which go through 7.88km. -This construction has seriously damaged Baekdudaegan.

10. 10 Chuncheon-Yangyang highway project Case study of Chuncheon-Yangyang Highway Outline of the Project -Large-scaled road construction has 4 lines. -Total amount of project is around 3,843.9 billion won. -71.7km long tunnel will be constructed. -This tunnel will extend over 10.9km through Baekdudaekan.

11. 11 Chuncheon-Yangyang highway project Case study of Chuncheon-Yangyang Highway

12. 12 Multi-criteria analysis in Decision-making Process, Chuncheon-Yangyang Highway

13. 13 Environmental Impact Analysis (EIA) Predictive and Evaluative Stage -Identification of impacts -Prediction of impacts -Evaluation of impacts Multi-criteria analysis in Decision-making Evaluation Stage -Measured in economic terms : Use information on the relationship among physical, biological, ecological attributes -Note the major problem : limitation of theory and data Cost Benefit Analysis (CBA) Multi-Criteria Analysis (MCA)

14. 14 Environmental Impact Analysis (EIA) Problem EIS not anticipate and evaluate the result -Limitation of both theory and data in the realm of biology and ecology -Go through the UNESCO biosphere reservation in Bakdudaekan -Violates Bakdudaekan Protection Law -Caused conflicts between the Government and the residents Multi-criteria analysis in Decision-making

15. 15 Multi-criteria analysis in Decision-making Evaluation Stage -EIA does not satisfactorily give environmental impact : cannot get precise result to convert it into economic value -Use I presuppose an assumption : destruction of ecosystem is around as half-length of tunnel -The result : Total cost of construction: 24,336 billion won : Total benefit: 19,728 billion won : B/C ratio: o.81 : NPV: 4,608 billion won Cost Benefit Analysis (CBA) Problem

16. 16 Public forum at EIA and Public Involvement: Problem Public Involvement Setup: - In July 2005, the government and NGO asserted their own opinions but not reach the agreement it in TV debate - In Setember 2005, NGOs held the forum with stakeholders - Negotiation impossible each other, NGOs and government Case study of Chuncheon-Yangyang Highway Public Forum -Government used PI, when the government got residents’ opinion Public Involvement Process: - Open a website(http://www.ccyypi.net)http://www.ccyypi.net - From September 2005 through March 2006: three conference - Government interest : highway construction and impact reduction - So, be never interested in discussing in social request item

17. 17 Multi-criteria analysis in Decision-making Reasons decision-making process complicate -Hard to anticipate environmental impact -To evaluate economic efficiency, we cannot avoid strong assumption -To protect ecosystem of Baekdudaegan institutionally -Sharpening conflict Multi-criteria Analysis (MCA): limitation Because of this reason -Strongly suggest MCA method - : environments, economics, institutions and opinions of residents

18. 18 Multi-criteria Analysis: EIA, CBA, PI Case study of Chuncheon-Yangyang Highway National environmental impact for Backdudaekan(EIA) Valuation of economic efficiency(CBA) Opinions of Residents(PI) Consideration of institution and policy

19. 19 Multi-criteria Analysis: EIA, CBA, PI Case study of Chuncheon-Yangyang Highway Elements as multi-criteria analysis: AHP -Environmental influence: 0.417 -Economical influence: 0.140 -Policy and system: 0.388 -Democracy in decision-making process in policy: 0.155 Priority is the following orders - (1) environmental influence - (2) economical influence - (3) policy and system - (4) democracy in decision-making process in policy lesson - necessary to give priority to environment and economic - policy and institution take precedence over economical influence - reconsider the construction of Chuncheon-Yangyang highway

20. 20 Lesson EIA requires anticipation and valuation of environmental impact Environmental BCA have to be included when we evaluate environmental impact In decision-making process, included following information -The policy and institutional effect -Deliberative decision-making -Environmental impact -Economic effect Should consider the following points(MCA) Multi-criteria analysis in Decision-making

21. 21 Thank You Multicritia analysis on decisionmaking process in public investment - in case of road construction project, Korea