한국지방재정공제회 LOCAL FINANCE ACCOCIATION

Business

Feasibility Study on Local Governments’ Investments



Basis
Local Finance Act, Article 37(2) The head of a local government shall undergo feasibility study on a new project with the total project cost of at least 50 billion won by a specialized institution designated and publicly notified by the Minister of the Interior and Safety and conduct investment appraisal based on the results thereof.





Description
(Concept) A preliminary procedure by specialized institutions that researches and analyzes the project possibility in terms of economic and financial aspects and policy level of the local governments’ investment project in an objective manner with expertise
(Targets) A project with the total cost of at least 50 billion won
(Stage) After the establishment of the project (before the investment appraisal)
(Method) Review on project plan ⇨ Basic data analysis ⇨ Identification of issues ⇨ Technical review and cost estimate ⇨ Economic feasibility analysis ⇨  Financial feasibility analysis ⇨  Policy feasibility analysis ⇨ Conclusion
(Application) A basis for judgment within the central council for local investment