Gov't seeks 61 tln won worth of state-initiated construction projects this year

SEOUL, Jan. 29 (Yonhap) -- The government said Friday that it will push for over
60 trillion won (US$52 billion) worth of state-initiated construction projects
this year as part of efforts to bolster private investment and help accelerate
the economic recovery.

According to the Ministry of Strategy and Finance, the government will carry out
61.1 trillion won worth of projects to construct roads, railways, seaports and
other social infrastructure across the nation by luring investment from the
private sector.
The amount includes new construction estimated at around 14.8 trillion won and
27.5 trillion won worth of projects carried over from the previous year, the
ministry said.
The construction projects will be carried out through build-transfer-lease (BTL)
or build-transfer-operate (BTO) systems, two major methods that the government
uses to stimulate private-sector spending on state-initiated construction
projects.
Through the systems, private builders are granted contracts to construct schools,
social welfare facilities or other public facilities at their own expense and
operate them to earn income or transfer ownership to the government in return for
lease profits.
The government will push for a total of 19.9 trillion won worth of
state-initiated construction through BTL, while 41.2 trillion won worth of BTO
projects will be carried out this year, the report showed.
kokobj@yna.co.kr
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