Efficient Implementation of Road Projects To Raise Eco-friendly Green Territory

1. Efficient Implementation of Road Projects To Raise Eco-friendly Green Territory 2010. 6. 23.

2. This report is written by the Taskforce consisting of public officials and relevant experts from the Presidential Council on National Competitiveness, Ministry of Land, transport and Maritime Affairs (MLTM), Ministry of Strategy and Finance (MOSF), Korean Research Institute for Human Settlements, and Korea Transport Institute.The TF has written the report from last Oct. to this May based on site tours around the U.S., Japan, the U.K., France and Germany and discussion with experts there. The report is designed to come up with measures to improve inefficient investment, damage on natural landscape, and invasion of public lives.

3. CONTENTS Ⅰ Current Status & Problems Ⅱ Causes of Problems Ⅲ Improvement Measures Ⅳ Expected Effects Ⅴ Future Plans

4. Ⅰ Current Status & Problems

5. 1 Ⅰ. Current Status & Problems Continuously expanding road network since the opening of Gyeongbu Expressway in 1970 Road has driven enhanced territorial competitiveness, economic growth and regional development Rapid expansion of road network resulted in problems such as redundant and excessive investment

6. 2 Ⅰ. Current Status & Problems Redundant & Excessive Investment 1 Causing side effects such as lack of passage, double-up construction of national highways and expressways, and excessive construction of higher speed freeways - Some of expanded national highways in regional areas found that the actual traffic fell short of traffic forecast - Double-up of expressway & Nat’l highway ring roads, excessive linear or multi-dimensional roads Facing demands from political circle & complaints in the region for unnecessary projects 2 Environmental Degradation from quantitative facility expansion Damaging landscape & environment, cutting off settlements

7. 3 Ⅰ. Current Status & Problems 3 Growing maintenance costs due to expanded roads Length of road Cost of maintenance 164,7853 41% up from ’00 in maintenance KRW 176.07 bil.(’00) 2484.2 bil.(’09) 151,250 24,842 17,607 Increased financial burden according to growing fixed costs ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 < Ref.: side effects of expanded public investment in Japan > Japan has implemented excessive public investment since 1992 to stimulate demands * Investing JPY 59 tril. in SOC among total 136 tril. Investment for the past 10 yrs Resulting in serious financial deficits and reduced to a debtor nation “Efficient implementation of road projects and comprehensive system improvement are required

8. 4 < Reference: current road facilities> Current road facilities Total road lengths have increased by 8.9% for the past 10 yrs 8.9% up 77% up 11% up ’00 13,819 ’09 164,785 3,776 12,413 2,131 151,250 Total road lengths Expressway National highway Road density (Total road lengths per land size 24thamong 58 countries with 1.04(km/km2) road density (2010, IMD) * Belgium-1st, Japan-4th, Germany-7th, U.K.-11th, France-16th, US-30th 4.99 6 4 4 3 2 1 0 1.04 1 4 7 10 13 16 19 22 24 28 31 34 37 40 43 46 49 58

9. Ⅱ Causes of Problems

10. 6 Ⅱ. Causes of Problems 1 Lack of connectivity among road plans Less conformity to Nat’l Comprehensive Plan Separate planning of land use, road and transport result in less connectivity Less consistency in road plans Separate planning by local govt.s caused less consultation & coordination Unclear distinction for function and importance of each road resulted in scattered investment Poor strategy for connected investment among transport modes Priority standard for demand-based investment considering a section where roads and railroads compete

11. 7 Ⅱ. Causes of Problems 2 Inflexible methods and design standard Road expansion focusing on higher standard roads Direct and multi-leveled expansion through detour roads Inflexible design standard Difficulty in flexible application considering regional characteristics Lack of considering environment & landscape Creating conflicts and longer time for consultation due to separated living area when designating routes(Max. 19months delayed)

12. 8 Ⅱ. Causes of Problems Insufficient feasibility & evaluation system 3 Excessive demand from Nat’l Assembly and local govt.s Causing waste of budget by investing in even less lucrative projects Inaccurate demand forecast Overestimates of future demand resulted in the shortfall of actual traffic in certain sections Poor evaluation system Delayed road projects could prolong project period without reevaluation Measuring project performance by provider cannot ensure reliability

13. 9 Ⅱ. Causes of Problems 4 Scattered road management system with less connectivity Scattered road management system Conduct maintenance and management by road management agency Korea Highway Corporation(expressway), regional administration (nat’l highway),local govt.s (provincial road) Integrated management system required by metropolitan zone Capital area: local govt.s dialogue (Capital transport headquarter) is operated with weak coordination function • Capital Transport Headquarter: operated in the form of cooperative among local govt.s • including Seoul and Incheon Non-capital area: wide-area transport demand management is required, but policy connection & coordination is absent

14. Ⅲ Improvement Measures

15. 11 Raising eco-friendly green territory through efficient implementation of road projects Goal Integrated planning and management of road facilities Direction Maximizing the use of existing road facilities, Preventing redundant & excessive investment Pursuing user-oriented & eco-friendly road projects 1. Establishing comprehensive planning of road projects 2. Promoting efficient methods and standard for road projects Tasks 3. Strengthening road project investment evaluation system 4. Advancing road facility management system

16. 12 1. Establishing Comprehensive Planning of Road Projects Enhancing conformity of road plan to comprehensive plan 1 Nat’l Comprehensive plan Strengthening connection of road plan to national comprehensive plan and basic national logistics plan Connecting road projects and various development project Transportation, logistics plan Road plan Establishing comprehensive inter-modal management system 2 Linking and adjusting investment plans by transport mode • Strengthening link and adjustment of implementation period and • priority by transport mode such as road and railroad • * Supplementing nat’l transport network plan(‘00~’19)

17. 13 1. Establishing Comprehensive Planning of Road Projects 3 Building up comprehensive planning system for major road network Review of road ranks Strengthening connection by road Establishing comprehensive plan (nat’l road network plan) Readjusting road ranks roads based on functions and road service level Basic road maintenance plan (10-year) Mid-term Investment plan (5-year) Nat’l road network plan (new, 20-year) Provincial road Nat’l highway Improving functions of road policy review committee Adjusting roads on boundaries Reviewing route designation, redundant & excessive investment, eco-friendly guideline, reevaluating delayed projects conflicts of interest among local govt.s for linking roads on boundariesroute adjustment by MLTM

18. 16 2. Promoting efficient methods & standard for road projects Moving toward efficient and various methods 1 Improving existing roads first Eschewing simple expansion and improving interchanges and Supporting budget first for expansion project using existing road facilities at certain extent Reducing scale of facility Over 4-lane alternative detour roads under construction Construct 2-lane roads considering road condition and traffic Diversifying expansion of road capacity When forecast traffic is less than 4-lane demand phase-in construction Not much traffic increaseexpand capacity by using existing roads such as 2+1lane system

19. 15 2. Promoting efficient methods & standard for road projects Flexible standard for design speed 2 Breaking down design speed for landscape, environment, topography and flexibly apply such standard * topographic condition (regional area): plain/mountain plain/ hill/ mountain *Installing interchange: trumpet type rotary or diamond types Separating local communities or damaging environment due to road construction Coordinating design speed of each section and apply minimum design standard without compromising safety

20. 18 2. Promoting efficient methods & standard for road projects Creating green·scenic roads 3 Phased expansion of Scenic Road and Revising ‘Scenic Road Guideline’ to consider and assess surrounding ecosystem, conditions Systemizing road project procedure 4 Expanding collection of residents’opinions - Preventing separation of settlements and economic impacts during designation and implementation * Ensuring participation of environment experts in route review, field study, and initial design

21. 19 3. Strengthening road project investment evaluation system Strengthening feasibility study for road project 1 Verifying feasibility clearly for individual project when conducting blanket pre-feasibility study for mid-and long-term plan Enhancing reliability and accuracy of demand forecast 2 Verifying traffic demand forecast through national research institute Expand target and period, verifying by outside expert * period (5yrs1~2yrs), target area(2483,500) Strengthening performance-based evaluation for road project 3 post evaluation by 3rd party, preventing inefficient investment when investment necessity decreases according to conditional change, such project will be re-evaluated * projects which have not initiated for the past 10yrs or stopped for 2yrs

22. 20 4. Advancing road facility management system A single channeled and specialized road maintenance 1 Considering sourcing of road construction and maintenance to expert agency * Consideration: commissioning to LH Corporation, private agency * Developing system improvement plan through research and experts’opinions (by Jun. 2011) 2 Comprehensively managing transport policies Capital area Non-capital area Forming wide-area transport policy dialogue(Local agency, local govt.s) Establishing cooperative mechanism Among MLTM, local govt.s Seoul regional Construction& management administration Regional development Transport authority In Capital area Logistics policy Transport policy

23. Ⅳ Expected Effects

24. 21 Ⅳ. Expected Effects Enhancing Financial Efficiency Saving Social Costs Preventing unnecessary projects such as pork barrel projects through verification Ensuring participation of residents, experts in various sectors Minimizing social conflicts Minimizing environmental impacts by including environmental elements in each project stage Improving Road Convenience Pursuing Green Efficiency Enhancing efficiency of road networkReducing CO2emissions saving traffic congestion cost Enhancing efficiency in road facility operation Improving convenience of road users by ensuring stability, convenience, and eco-friendliness of roads Concentrating investment and promoting efficient road operation saving congestion cost, logistics cost

25. Ⅴ Future Plans

26. 22 Ⅴ. Future Plans Establishment of implementation plans for efficient road projects - Specific implementation plans will be prepare by December 2010 by gathering Opinions of experts from the public, private sectors and academia. Review of the second 5-year investment plan projects(2006-2010) That have not been completed to suspend them or reduce their scale Carry forward revision of the law required for amendment by Dec. 2010 along with subordinate laws and guidelines