Private investment in large-scale infrastructure projects in Korea is expected to grow 26 percent in 2008 from a year earlier thanks to increased government-placed orders, a government report showed Thursday (Mar. 27).

According to the report by the Ministry of Strategy and Finance, private-sector investment in social overhead capital will amount to 7.5 trillion won ($7.5 billion) this year, compared with 6 trillion won a year ago.

Private companies are expected to invest 3.3 trillion won in build-transfer-operate (BTO) projects, while investment through a build-transfer-lease (BTL) system is forecast to amount to 4.2 trillion won, the report said.

BTO and BTL are two major methods that the government uses to stimulate private-sector spending on state-initiated construction projects.

Through the two 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, with ownership transferred to the government after a given period.

SOURCE : Korea.net