1. Efficient Implementation of Road Projects To Raise Eco-friendly Green Territory To Raise Eco-friendly Green Territory Efficient Implementation of Road Projects To Raise Eco-friendly Green Territory 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 Current Status & Problems Ⅰ Ⅰ Causes of Problems Ⅱ Ⅱ Improvement Measures Ⅲ Ⅲ Expected Effects Ⅳ Ⅳ Future Plans Ⅴ Ⅴ

4. Current Status & Problems Ⅰ Ⅰ

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

6. Redundant & Excessive Investment 1 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 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 2 Ⅰ. Current Status & Problems Facing demands from political circle & complaints in the region for unnecessary projects Facing demands from political circle & complaints in the region for unnecessary projects Environmental Degradation from quantitative facility expansion 2 2 Damaging landscape & environment, cutting off settlements

7. Growing maintenance costs due to expanded roads 3 3 Increased financial burden according to growing fixed costs Increased financial burden according to growing fixed costs “Efficient implementation of road projects and comprehensive system improvement are required “Efficient implementation of road projects and comprehensive system improvement are required 3 ’00’01’02’03’04’05’06’07’08’09 24,842 164,7853 Length of road Cost of maintenance 151,250 17,607 Japan has implemented excessive public investment since 1992 to stimulate demands 41% up from ’00 in maintenance KRW 176.07 bil.(’00) 2484.2 bil.(’09) 41% up from ’00 in maintenance KRW 176.07 bil.(’00) 2484.2 bil.(’09) * 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 Ⅰ. Current Status & Problems

8. 4 64432106443210 64432106443210 1 1 4 4 7 7 10 13 16 19 22 24 28 31 34 37 40 43 46 49 58 1.04 Road density (Total road lengths per land size 24 th among 58 countries with 1.04(km/km 2 ) road density (2010, IMD) * Belgium-1 st, Japan-4 th, Germany-7 th, U.K.-11 th, France-16 th, US-30 th 24 th among 58 countries with 1.04(km/km 2 ) road density (2010, IMD) * Belgium-1 st, Japan-4 th, Germany-7 th, U.K.-11 th, France-16 th, US-30 th Total road lengths have increased by 8.9% for the past 10 yrs Current road facilities ’00 4.99 ’09 Total road lengths 151,250 164,785 8.9% up Expressway 2,131 3,776 77% up National highway 11% up 13,819 12,413

9. Causes of Problems Ⅱ Ⅱ

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

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

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

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

14. Improvement Measures Ⅲ Ⅲ

15. 11 Goal Direction Tasks Raising eco-friendly green territory through efficient implementation of road projects Raising eco-friendly green territory through efficient implementation of road projects Integrated planning and management of road facilities Maximizing the use of existing road facilities, Preventing redundant & excessive investment 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 3. Strengthening road project investment evaluation system 4. Advancing road facility management system

16. 1 1 2 2 12 Enhancing conformity of road plan to comprehensive plan Strengthening connection of road plan to national comprehensive plan and basic national logistics plan Strengthening connection of road plan to national comprehensive plan and basic national logistics plan Connecting road projects and various development project Nat’l Comprehensive plan Transportation, logistics plan Road plan Establishing comprehensive inter-modal management system 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) - 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) 1. Establishing Comprehensive Planning of Road Projects

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

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

19. 2 2 15 2. Promoting efficient methods & standard for road projects Flexible standard for design speed Breaking down design speed for landscape, environment, topography and flexibly apply such standard 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 Separating local communities or damaging environment due to road construction Coordinating design speed of each section and apply minimum design standard without compromising safety Coordinating design speed of each section and apply minimum design standard without compromising safety

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

21. 3. Strengthening road project investment evaluation system Strengthening feasibility study for road project Enhancing reliability and accuracy of demand forecast Strengthening performance-based evaluation for road project 19 1 1 2 2 3 3 Verifying feasibility clearly for individual project when conducting blanket pre-feasibility study for mid-and long-term plan Verifying feasibility clearly for individual project when conducting blanket pre-feasibility study for mid-and long-term plan Verifying traffic demand forecast through national research institute Expand target and period, verifying by outside expert * period (5yrs 1~2yrs), target area (248 3,500) Verifying traffic demand forecast through national research institute Expand target and period, verifying by outside expert * period (5yrs 1~2yrs), target area (248 3,500) post evaluation by 3 rd 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 post evaluation by 3 rd 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. 4. Advancing road facility management system 1 1 2 2 A single channeled and specialized road maintenance Comprehensively managing transport policies Considering sourcing of road construction and maintenance to expert agency Considering sourcing of road construction and maintenance to expert agency Capital area Non-capital area Regional development Regional development Logistics policy Logistics policy Transport policy Establishing cooperative mechanism Among MLTM, local govt.s Establishing cooperative mechanism Among MLTM, local govt.s Seoul regional Construction & management administration Seoul regional Construction & management administration Transport authority In Capital area Transport authority In Capital area 20 * Consideration: commissioning to LH Corporation, private agency * Developing system improvement plan through research and experts’opinions (by Jun. 2011) * Consideration: commissioning to LH Corporation, private agency * Developing system improvement plan through research and experts’opinions (by Jun. 2011) Forming wide-area transport policy dialogue (Local agency, local govt.s) Forming wide-area transport policy dialogue (Local agency, local govt.s)

23. Expected Effects Ⅳ Ⅳ

24. Enhancing Financial Efficiency Saving Social Costs Pursuing Green Efficiency Improving Road Convenience Preventing unnecessary projects such as pork barrel projects through verification Preventing unnecessary projects such as pork barrel projects through verification Ensuring participation of residents, experts in various sectors Ensuring participation of residents, experts in various sectors Minimizing environmental impacts by including environmental elements in each project stage Minimizing environmental impacts by including environmental elements in each project stage Enhancing efficiency of road network Reducing CO 2 emissions saving traffic congestion cost Enhancing efficiency of road network Reducing CO 2 emissions saving traffic congestion cost Concentrating investment and promoting efficient road operation saving congestion cost, logistics cost Concentrating investment and promoting efficient road operation saving congestion cost, logistics cost Enhancing efficiency in road facility operation Enhancing efficiency in road facility operation 21 Ⅳ. Expected Effects Improving convenience of road users by ensuring stability, convenience, and eco-friendliness of roads Improving convenience of road users by ensuring stability, convenience, and eco-friendliness of roads Minimizing social conflicts

25. Future Plans Ⅴ Ⅴ

26. 22 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. 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 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 Carry forward revision of the law required for amendment by Dec. 2010 along with subordinate laws and guidelines Ⅴ. Future Plans