Daejeon City Begins Land Compensation for Sewage Treatment Plant Relocation Project

Daejeon City is initiating the land compensation procedures for the relocation project of the Geumgo-dong Sewage Treatment Plant.

Aerial view of the sewage treatment plant in Geumgo-dong, Daejeon. Provided by Daejeon City.

On the 23rd, Daejeon City announced the compensation plan for the site of the ‘Daejeon Sewage Treatment Plant Facility Modernization Private Investment Project’ and stated that it will proceed with compensation procedures such as appraisal.

The compensation will target 25 parcels (62,874㎡) excluding city-owned land out of a total of 85 parcels (141,861㎡) incorporated into the sewage treatment plant site.

Daejeon City plans to secure an additional 1 billion KRW through a supplementary budget on top of the 3 billion KRW compensation fund secured in the main budget. The additionally secured budget will be used for compensation procedures for remaining land and others.

Earlier, to facilitate smooth land compensation and help residents understand, Daejeon held residents’ briefings in February and May. For fair appraisals, landowners were asked to recommend appraisal companies, and opinions on realistic compensation pricing and purchase of remaining land were collected.

This month, the city plans to complete consultations with related departments for land compensation and implementation plan approval, announce the implementation plan approval, and start construction in August.

The ‘Daejeon Sewage Treatment Plant Facility Modernization Private Investment Project’ is a project to relocate and integrate the previously separately operated Wonchon-dong Sewage Treatment Plant and Ojeong-dong Night Soil Treatment Plant into the Geumgo-dong area of Yuseong-gu, with a total project cost of 721.4 billion KRW (constant price as of January 1, 2016).

This project is being promoted under the ‘Profit and Loss Sharing Private Investment Project (BTO-a)’ model. Under this model, if profits arise from facility operation, the government and private sector share the profits at a 70:30 ratio, and if losses occur, the private sector bears up to 30% first, with the government providing financial support if losses exceed 30%.

Earlier, in January last year, Daejeon designated (tentatively named) Daejeon Enviro Co., Ltd. as the preferred negotiator and signed an implementation agreement. Daejeon Enviro Co., Ltd. includes 15 companies such as Hanwha Construction. Among them, 8 companies are reported to be local construction firms.

The facility capacity of the Geumgo-dong Sewage Treatment Plant is 650,000㎥ per day. Daejeon plans to introduce advanced construction methods to build the sewage treatment facility underground to fundamentally block odor generation, and install parks and other resident convenience facilities above ground. The construction period is 60 months, aiming for completion in 2028.

Since signing the implementation agreement in January last year, Daejeon City has completed administrative procedures including ▲review of detailed design ▲cultural heritage survey ▲landscape review ▲design safety review ▲environmental impact assessment consultation ▲underground safety impact assessment ▲approval of development restriction zone management plan ▲urban management plan decision (change) ▲disaster impact review ▲economic feasibility review of detailed design.

Park Pil-woo, Director of Water Quality Improvement Division of Daejeon City, said, “The Daejeon Sewage Treatment Plant Facility Modernization Project, which has been delayed for over 10 years, is now meaningful as most administrative procedures have been completed and compensation procedures are starting.” He added, “Daejeon City will thoroughly carry out follow-up procedures such as implementation plan approval to ensure that construction can start quickly.”

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