Daejeon Sewage Treatment Plant Modernization Project on Track

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The modernization project of the Daejeon sewage treatment plant facilities is expected to get on track.

Daejeon City announced on the 23rd that it has finally selected (tentatively named) Daejeon Enviro Co., Ltd. as the preferred negotiation partner for the 'Daejeon Sewage Treatment Plant Facilities Modernization Private Investment Project.'

Daejeon Enviro includes Hanwha Construction as the lead company. The city received the project proposal in 2016, completed the eligibility review by the Public Investment Management Center and the approval process by the Daejeon City Council, and after the third-party proposal announcement on September 25, completed the evaluation of Daejeon Enviro's sole proposal (Phase 1 preliminary qualification review).

Subsequently, after Daejeon Enviro submitted the Phase 2 evaluation proposal documents on the 11th, the follow-up procedure (evaluation by Korea Environment Corporation) was conducted, and the company was selected as the final preferred negotiation partner.

The Daejeon sewage treatment plant facilities modernization project centers on integrating and relocating the sewage treatment plant in Wonchon-dong and the fecal treatment plant in Ojeong-dong to near the Geumgo-dong Resource Circulation Complex.

In particular, through the modernization project, the city plans to underground the sewage treatment facilities to fundamentally block odor generation and install various resident convenience facilities such as sports facilities on the ground.

This project is the first large-scale sewage treatment plant relocation project in Korea, with a total project cost of 720 billion KRW.

Once the modernization project is completed, the city plans to operate the sewage treatment plant as a 'profit and loss sharing type private investment project (BTO-a).' When operating profits occur, the government and private sector will share profits at a 7:3 ratio, and when losses occur, the private sector will bear up to 30% first, and if losses exceed 30%, the government will provide financial support.

Meanwhile, the city plans to start a kickoff meeting for negotiations in January next year with Korea Environment Corporation and Daejeon Enviro and aims to complete negotiations on construction costs, operating costs, and project profitability within the first half of the year.

Im Muk, Director of the Environmental Greenery Bureau of the city, said, "With the designation of the preferred negotiation partner for the Daejeon sewage treatment plant modernization project, we expect to be able to prepare a detailed project plan," and added, "The city will conduct negotiations meticulously to minimize the burden on citizens during the negotiation process."

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