Garak Market Modernization Phase 1 Section (Vegetable Building 2) Likely to Start Construction Within the Year

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[Asia Economy Reporter Jong-il Park] The modernization project of the Garak Market wholesale area is expected to commence construction within this year, following the completion of the total project cost adjustment after passing the 'Project Plan Adequacy Re-examination' last year.

The Seoul Agro-Fisheries & Food Corporation (President Kim Kyung-ho) announced that the Ministry of Economy and Finance (hereafter MOEF) held an adjustment review meeting and approved the adjustment of the project cost for Garak Market Section 1 (Vegetable Building 2) from the original 131.5 billion KRW to 145.6 billion KRW, an increase of 14.1 billion KRW. As a result, the total project cost for the Garak Market modernization project increased from the original 990.7 billion KRW to 1.0048 trillion KRW.

This increase in project cost reflects the strengthened regulations such as the mandatory ratio of renewable energy and local residents' complaints including improvements in the design of solar power structures, following the KDI adequacy re-examination passed last year.

Although the Public Procurement Service's detailed design adequacy review was delayed by about three months compared to the original plan due to the impact of COVID-19, the swift completion of negotiations and adjustments on the total project cost with the MOEF (on August 18) is expected to accelerate the progress of the project going forward.

The corporation plans to request the Public Procurement Service to issue the construction order for Section 1 (Vegetable Building 2) in September and select the construction company in December.

The largest Section 2 (Vegetable Building 1, Fisheries Building) project is also gaining momentum. In June, through a specialized research service, an operational model and logistics/facility layout plan for Section 2 were established, and limited explanatory meetings are being held for resident distributors due to the COVID-19 situation.

Once COVID-19 stabilizes, explanatory meetings are planned for each wholesale corporation and intermediate wholesaler association. For major issues, a design promotion council involving stakeholders and experts will be operated for focused discussions to derive the optimal plan.

A corporation official stated, “Following last year's successful adequacy re-examination of the project plan, the recent total project cost adjustment has also been successfully completed. With the commencement of the Garak Market modernization wholesale area project becoming visible, we will continue to do our best to ensure the successful progress of the project.”

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