Naju City Reiterates Rebuttal: 'Gwangju SRF Loss Compensation Not Included'

Statement of Facts Regarding Gwangju SRF Import

[Naju=Asia Economy Honam Reporting Headquarters Reporter Kim Yuk-bong] Jeollanam-do Naju City recently exchanged position statements with Gwangju Metropolitan City regarding the SRF (Solid Refuse Fuel) combined heat and power plant and engaged in a dispute, and has now issued a rebuttal again.

On the 13th, Naju City stated in the "Fact Explanation Document on Gwangju City's Position Statement" that "Gwangju City is taking a very coercive stance by treating the issue merely as a contractual matter between Cheongjeong Bitgoeul Co., Ltd. and Korea District Heating Corporation and seeking legal measures rather than efforts to solve the problem," and "the city expresses deep concern and regret over Gwangju City's approach."

Earlier, on the 8th, the city revealed a firm position that Gwangju SRF cannot be included in the scope of loss compensation, which is currently stalled due to differences of opinion among the participants in the public-private cooperative governance for resolving the power plant issue.

In particular, the loss issue of Cheongjeong Bitgoeul Co., Ltd. was pointed out as a problem that should be resolved by the major shareholders, Gwangju City and Korea District Heating Corporation, resulting from Gwangju City's selfish waste policy and Korea District Heating Corporation's reckless project promotion.

Accordingly, the city urged that, according to the original agreement, Gwangju's waste should be directly handled by Gwangju City.

In response, Gwangju City drew a line by stating in its position statement on the 12th that the issue of whether the power plant operates "started from Naju City's administrative approval of the power plant construction."

The city rebutted Gwangju City's claim again based on the facts related to the import of Gwangju SRF into Naju.

First, it pointed out that the "Waste-to-Energy Project Cooperation Agreement" signed in March 2009 did not include Gwangju SRF.

According to the agreement, SRF (solid fuel) produced at the waste pre-treatment facilities of Naju City, Mokpo City, and Suncheon City was to be imported into the waste solid fuel dedicated power plant.

At that time, nine organizations participated in the agreement, including the Ministry of Environment, Jeollanam-do, Mokpo City, Suncheon City, Naju City, Gurye County, Hwasun County, Shinan County, and Korea District Heating Corporation, but Gwangju City was not an original party to the agreement.

The city criticized that contrary to the agreement, "Gwangju City had already planned to supply all of Gwangju SRF to the Naju combined heat and power plant since 2011."

As evidence, it presented the minutes (transcript) of the Gwangju City Council plenary session held on September 27, 2011, which contained a Q&A between the Director of the Environment and Ecology Bureau of Gwangju City and a city council member.

At that time, Director Shin stated publicly, "From Gwangju City's perspective, we are concerned about potential health risks to local residents from operating an RDF (Refuse Derived Fuel) power facility made from combustible household waste, so despite difficulties and obstacles in the project promotion process, we plan to build only the production facility without installing the power facility."

He continued, "Since RDF produced in nearby Naju, the innovation city of Jeollanam-do and Gwangju, will be supplied entirely to the combined heat and power plant there, it may be somewhat selfish thinking, but citizens' environmental pollution concerns can be relaxed."

Regarding this statement, a city council member retorted, "What Director Shin is making a significant error about is that, as a Gwangju Metropolitan City official, he implies that Gwangju citizens will not suffer damage, but people in the nearby Naju Innovation City can suffer damage, is that correct?"

When controversy arose over the operation of the SRF combined heat and power plant, the transcript was made public in the local community, and strong criticism arose in Naju regarding Gwangju City's selfish waste disposal administration.

In response, on October 15, 2013, the city sent an official letter to Gwangju City demanding an apology from a senior Gwangju official and stating that "Gwangju SRF cannot be imported as it was not subject to prior agreement or consultation."

The problem lies in Gwangju City's claim in its recent position statement that "if the SRF demand source of the POSCO Construction consortium was unclear at the time of the Gwangju SRF project agreement in June 2014, the preferred negotiation partner would have been changed to T Construction."

The city rebutted, "Gwangju City was already aware of the problem with the SRF demand source of the POSCO Construction consortium through the opposition letter against Gwangju SRF sent by Naju City on the 15th."

It added, "Nevertheless, on November 8, 2013, POSCO Construction consortium, including Korea District Heating Corporation, was selected as the preferred negotiation partner, and on December 3 of the same year, the establishment of Cheongjeong Bitgoeul Co., Ltd. was forced. On April 30, 2014, a unilateral SRF supply contract was signed between Cheongjeong Bitgoeul Co., Ltd. and Korea District Heating Corporation, resulting in the import of Gwangju SRF into Naju."

Based on these facts, the city reiterated its position that "Gwangju SRF, which lacks procedural legitimacy, cannot be included in the scope of loss compensation."

This content was produced with the assistance of AI translation services.