No multiple bidders for high-difficulty construction
Construction delays raise concerns about delays in opening in 2029
Hyundai Construction Consortium is expected to take charge of the project
The construction project for the new airport site in Gadeokdo, worth 10.53 trillion won, is expected to be completed by the Hyundai Construction consortium. This is because the government has decided to convert the project, which has been put on hold four times due to multiple bidders, to a negotiated contract.
The Ministry of Land, Infrastructure and Transport announced on the 12th that it had decided to convert the construction of the new Gadeokdo Airport site to a negotiated contract. The construction project has been unsuccessful in bidding four times since the first order was placed in May. According to the National Contracts Act, a conversion to a negotiated contract is possible if there are two or more unsuccessful bids.
The estimated cost of the Gadeokdo New Airport site development project is 10.53 trillion won. It is the largest single project among public finance projects. The project focuses on building airport facilities, port outer facilities, and bridges on 6,669,000㎡ of Gadeokdo in Gangseo-gu, Busan. The total cost of the Gadeokdo New Airport project, including passenger terminals, access railways, and roads, is 15.4 trillion won.
The change in the contract is analyzed as a result of concerns that if the new airport site construction continues to be delayed, the goal of opening by the end of 2029 may become difficult. The new airport site construction in Gadeokdo requires various types of work to be carried out simultaneously. It is considered a difficult project as large-scale ocean reclamation must also be carried out simultaneously.
In the first round of bidding in May of this year, no one participated, so it was aborted. In the second round in June, the Hyundai Construction consortium was the only one to participate, and it was again aborted. In response, the Ministry of Land, Infrastructure and Transport increased the number of joint bids among the top 10 construction companies from two to three, allowing them to share the risk. The construction period was also extended by one year from six years to seven years after the start of construction, and the design period was also extended by two months from 10 months to 12 months. However, even though the bidding notice was issued twice in August after the conditions were changed, the only bidder was the Hyundai Construction consortium. A construction industry insider said, “The fact that no construction company participated despite the relaxed bidding conditions can be interpreted as meaning that the business is lacking.”
The Ministry of Land, Infrastructure and Transport explained, “Even if we re-announce the project, we saw that the possibility of competition was not high,” and “We took into account the situation that if the land development work is delayed, related projects that were progressing normally, such as the passenger terminal design and access transportation network project, could also be delayed.”
The fact that the construction project for the new Gadeokdo Airport was classified as a national balanced development project also influenced the decision to convert to a private contract. This was because there was a big justification that the opening target date could not be delayed. According to the Ministry of Land, Infrastructure and Transport, the number of international passengers at Gimhae Airport is expected to reach a maximum of 8.9 million by the end of this year, exceeding the facility capacity of 8.3 million. The demand for regional international flights is expected to increase from 12.84 million in 2030 to 23.26 million in 2065. The new Gadeokdo Airport will be built across land and sea and aims to accommodate 23.26 million international passengers and 335,000 tons of international cargo by 2065.
Reporter Lee Chuk-bok [email protected]
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2024-09-13 08:46:39