Shin Jeong-hoon: "Losses Due to Gwangju Waste Should Naturally Be Excluded"... Urges Rational Calculation of Naju SRF Loss Compensation Amount

Based on the 2009 Business Cooperation Agreement, Gwangju Loss Costs Must Be Excluded

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] As negotiations within the public-private cooperation governance formed to resolve the operation of the Naju SRF power plant face the risk of collapse, there are claims that the loss compensation amount should be calculated reasonably and acceptably based on the 2009 "Waste-to-Energy Project Cooperation Agreement."

Shin Jeong-hoon, a member of the National Assembly’s Industry, Trade and Energy Committee from the Democratic Party of Korea representing Naju-Hwasun, stated at the Korea District Heating Corporation’s audit held on the 20th, “For a solution based on the basic agreement of the Naju SRF public-private cooperation governance to be established, a decisive loss compensation plan must be prepared. However, the loss amount related to Gwangju waste demanded by the Korea District Heating Corporation should be excluded.”

The Korea District Heating Corporation estimates the loss amount related to the Gwangju-Jeonnam SRF project at a total of 800.1 billion KRW, including 156.1 billion KRW in investment loss, 372 billion KRW in operational loss, and 272 billion KRW in Gwangju damage compensation loss.

Regarding this, Assemblyman Shin stated that if loss compensation is to be made, the basis for calculating losses should be the "Waste-to-Energy Project Cooperation Agreement for the Creation of a Resource Circulation Energy City in the Gwangju-Jeonnam Joint Innovation City," signed on March 27, 2009, between the District Heating Corporation, Naju City, six cities and counties in Jeonnam, and the Ministry of Environment.

Shin said, “The 2009 agreement stipulated that household waste fuel from six cities and counties in Jeonnam?Naju City, Mokpo City, Suncheon City, Hwasun County, Sinan County, and Gurye County?would be supplied free of charge for five years, and thereafter, separate consultations would be conducted through a consultative body. However, in 2014, the inclusion of SRF fuel produced in Gwangju and the change to paid supply were made without separate consultations, which is a significant alteration of the agreement,” raising concerns.

Shin questioned, “Why bring in Gwangju waste when the agreement was made with Jeonnam Province? Jeonnam’s waste is supplied free of charge, so why buy Gwangju’s waste? Even considering the volume of waste brought in, it can be considered a Gwangju waste incineration plant, so losses caused by Gwangju waste should naturally be excluded,” emphasizing the point.

In response, the Korea District Heating Corporation stated, “We recognize the significance of the governance agreement seriously and will do our best to comply and implement it. We will also take a more proactive stance regarding the preparation of a loss compensation plan, which is the biggest obstacle in governance consultations.”

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