Choi, Mihee 2008. 8. 11

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

2. Contents • 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

3. Study Point and Methodology

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

5. Decision-Making System in SOC investment

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

7. Case Study Chuncheon-Yangyang Highway Construction Project

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

9. Pressure of Development on Baekdudaekan Case study of Chuncheon-Yangyang Highway • 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. • 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. 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. Chuncheon-Yangyang highway project Case study of Chuncheon-Yangyang Highway

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

13. Environmental Impact Analysis (EIA) Cost Benefit Analysis (CBA) Multi-Criteria Analysis (MCA) Multi-criteria analysis in Decision-making • Predictive and Evaluative Stage • Identification of impacts • Prediction of impacts • Evaluation of impacts • 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

14. Environmental Impact Analysis (EIA) Problem Multi-criteria analysis in Decision-making • 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

15. Cost Benefit Analysis (CBA) Problem 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

16. Public forum at EIA and Public Involvement: Problem Case study of Chuncheon-Yangyang Highway • Public Forum • Government used PI, when the government got residents’ opinion • 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 • Public Involvement Process: • Open a website(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. Multi-criteria Analysis (MCA): limitation 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 • Because of this reason • Strongly suggest MCA method • : environments, economics, institutions and opinions of residents

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

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. Lesson Multi-criteria analysis in Decision-making Should consider the following points(MCA) • 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

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