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Improvement of Decrepit Roads in Gyeonggi-Do by Utilizing Private Investment

Improvement of Decrepit Roads in Gyeonggi-Do by Utilizing Private Investment

Year2022

Author Lee Hoyoung

Original

Abstract

Due to the decrepit road facilities such as bridges and tunnels in Gyeonggi-do, maintenance and performance improvement costs are expected to increase in the future, but the public sector budget that can be invested is limited. As the deterioration of road facilities accelerates, there is a risk of a rapid increase in human life and property damage due to deterioration in safety and occurrence of disasters. In order to prevent this in advance, it is necessary to expand investment in old road facilities in advance, and a paradigm shift is needed to focus on maintenance and performance improvement. According to the PPP Act on Social Infrastructure, it is possible to invest private capital to manage and improve decrepit road facilities, however, it is inactivated yet. Therefore, this study seeks to find ways to utilize private capital for timely improvement of old road facilities in Gyeonggi-do.
First, based on the literature review on the concept and definition of decrepit roads, the standards for physical and functional aging of old roads were presented. Currently, the most representative criteria for measuring old roads and facilities are safety grade C or lower and service life of 30 years or more, but the criteria vary by researcher and institution. In this study, decrepit road facility measurement indicators were re-organized in terms of physical and functional aspects. The physical aspect is classified into cases in which damage to physical elements such as damage or collapse of road facilities occurs, and the functional aspect is classified into cases in which problems occur in use, such as natural disasters and capacity increases.
Second, the need to use private capital is suggested through a comparative review of the related budget against the demand for improvement of decrepit roads in Gyeonggi-do. About 14.2% of road facilities in Gyeonggi-do are aging, and the ratio of such facilities is expected to increase to 49.0% in 10 years. In the case of bridges, it is necessary to consider the possibility of deterioration as the ratio of facilities that are between 20 and 30 years and have a safety grade of B is high at 25.9%. In the case of the budget for road facility management, the execution performance and budget are increasing or maintained in the maintenance field, but both execution performance and budget are rapidly decreasing in the performance improvement field. In particular, the performance improvement budget for 2025 is reduced by about 65% compared to 2021.
Third, based on the private investment project propulsion method and case studies, we proposed a business method appropriate for maintenance and performance improvement of old roads. The rehabilitate, operation, and rehabilitate operation type private investment project promotion methods were reviewed.
Lastly, a plan to promote private investment projects to improve decrepit roads was presented. In the case of the performance improvement and maintenance business of decrepit roads in Gyeonggi-do, it is difficult to secure profitability due to the small scale of individual businesses. Therefore, it is necessary to review various ways to secure profitability of the business, such as bundling and incidental businesses. From a legal and institutional perspective, it is necessary to establish new ordinances such as road facility performance improvement and minimum maintenance standards, and prepare related guidelines and detailed guidelines. The role of Gyeonggi Public Investment Management Center (GIMAC) was suggested as diagnosing and evaluating the deterioration of roads and road facilities in its jurisdiction, discovering new projects, deriving priorities for project promotion, and reviewing proposals.

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