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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] The South Korean government has decided to switch the selection process for the contractor of the Gadeokdo New Airport land development project to a private contract after four failed bidding attempts. This change is expected to favor the Hyundai Engineering & Construction consortium, which was the sole bidder in three of the previous rounds.
On September 12, the Ministry of Land, Infrastructure, and Transport announced that the contractor would be selected through a private contract in accordance with Article 27 of the National Contract Law Enforcement Ordinance. The ministry has requested the Public Procurement Service to proceed with the related procedures. The procurement agency will conduct a pre-qualification (PQ) assessment of the Hyundai consortium and confirm its willingness to participate in the private contract. The formal contract is anticipated to be signed early next year.
The government has made steady progress on other aspects of the Gadeokdo Airport project, including designing the passenger terminal and constructing access roads and railways. However, the most critical phase—land development—faced delays as the bidding process was voided four times. The first round attracted no bidders, while the subsequent rounds saw only the Hyundai consortium, resulting in failed tenders.
The Hyundai consortium, which is now poised to take on the project, includes top construction firms. Hyundai Engineering & Construction holds a 25.5% stake, Daewoo Engineering & Construction 18%, and POSCO Engineering & Construction 13.5%. Other companies, including Kumho E&C, HL D&I Halla, Kolon Global, Dongbu E&C, KCC E&C, Ssangyong E&C, Hanyang, and Hyosung Heavy Industries, each hold 4%. Regional companies account for 11% of the consortium's shares, with firms from Busan and South Gyeongsang Province participating in the project.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
