Seongnam City to Replace Aging Incineration Facility with Private Investment Construction

Aerial rendering of a new private incineration facility with a daily processing capacity of 500 tons to be built in Jungwon-gu, Seongnam-si Photo by Seongnam City Hall

[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province will replace the 600-ton waste incineration facility located in Sangdaewon 1-dong, Jungwon-gu, which has been operating for 24 years, with a new facility through a private investment project.

On the 13th at 5 p.m., Seongnam City announced on the 14th that Vice Mayor Jang Young-geun and officials from Seongnam Green Energy Co., Ltd., the project implementer, attended the "Designation of Private Investment Project Implementer and Implementation Agreement for the Household Waste Treatment Facility" at the Vice Mayor's Office on the 2nd floor of City Hall.

According to the agreement, the project implementer will build a household waste treatment facility with a daily processing capacity of 500 tons on a 6,422㎡ site right next to the current incineration facility.

Construction will begin in the first half of next year, with completion scheduled for the first half of 2026.

The total project cost is 158.5 billion KRW, including 32.9 billion KRW in national funds, 9.1 billion KRW in provincial funds, 32.1 billion KRW in city funds, 49.4 billion KRW in private investment, and 35 billion KRW in polluter pays contributions.

The project will be operated under a profit and loss sharing type (BTO-a) private investment model, granting the project implementer operational rights for 20 years after construction.

If operational losses occur, the project implementer will bear 30% of the losses, and if profits are generated, they will be shared between Seongnam City and the project implementer at a certain ratio.

After the replacement facility is built, the current 600-ton waste incineration facility will be remodeled and used as an environmental education facility and a public facility for citizens.

A city official explained, "The currently operating waste incineration facility was built in 1998 and is outdated," adding, "Building a replacement facility under the profit and loss sharing model can promote private investment in social infrastructure and improve operational efficiency."

Earlier, on September 9, Seongnam Mayor Shin Sang-jin met with members of the resident support council near the incineration facility and promised, "We will promptly carry out administrative procedures such as environmental impact assessment changes and building consultations, then construct the incineration facility."

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