Four private investment projects, including the GTX-C and the Bujeon-Masan Line, have been approved by the Private Investment Project Review Committee. The total cost of these projects is estimated at 6.8 trillion won.
The Ministry of Economy and Finance announced that during the fifth meeting of the Private Investment Project Review Committee, chaired by Deputy Minister Cho Yong-beom, four projects in the railway and environmental sectors, along with a revision of the basic plan for private investment projects, were reviewed and approved.
The committee approved amendments to the implementation agreements for the GTX-C and the Bujeon-Masan Line. It also passed a simplified eligibility review for the modernization of the Sokcho sewage treatment facility and designated the Yongin Green Eco Park private investment project, along with a public proposal for third-party suggestions.
The GTX-C project connects Deokjeong in Yangju to Suwon over a distance of 86.6 kilometers, featuring 14 stations and a total project cost of 4.9272 trillion won. The amendment to the implementation agreement reflects an increase in construction costs following an arbitration ruling by the Korea Commercial Arbitration Board on April 1.
This project will be executed as a Build-Transfer-Operate (BTO) model, with a construction period of 60 months and an operational period of 40 years. The government estimates that travel time from Deokjeong to Samsung will decrease from approximately 80 minutes to about 30 minutes once the GTX-C is operational.
The Bujeon-Masan Line is a conventional railway spanning 32.7 kilometers, connecting Bujeon Station in Busan to Jinrye in Gimhae, with five stations and a total project cost of 1.218 trillion won. This project has faced delays since the Nakdong Tunnel collapse in March 2020. The amendment to the implementation agreement includes plans for partial openings of the Masan-Gangseo Geumho and Sasang-Bujeon sections, which have already been completed.
The project will be developed by straightening the route that previously bypassed Samyangjin, and when fully operational, travel time from Bujeon to Masan is expected to reduce from about 90 minutes to 40 minutes. This project will be executed as a Build-Lease (BTL) model, with a construction period of 72 months and an operational period of 20 years.
The modernization of the Sokcho sewage treatment facility involves constructing a new facility capable of processing 56,000 cubic meters of sewage per day in Daepo-dong, Sokcho, Gangwon Province. This project will be pursued as a profit-sharing private investment project (BTO-a). Following the committee's approval, the economic and policy analysis will be omitted, focusing instead on assessing the appropriateness of the private investment model compared to public financing.
The Yongin Green Eco Park private investment project aims to establish a waste incineration facility with a capacity of 500 tons per day and a resource recovery center with a capacity of 150 tons in Cheoin-gu, Yongin. The incineration facility will be underground, with plans for a park and multi-cultural facilities above. This project will also be executed as a BTO-a model, with a construction period of 48 months and an operational period of 20 years.
Additionally, the committee approved a revision of the basic plan for private investment projects to promote the activation of a public participation infrastructure fund. This revision aims to encourage fund formation by exempting the sharing of profits generated during the refinancing process of private investment projects. The government plans to consult with relevant agencies to launch the first public participation infrastructure fund by the end of this year.
The public participation infrastructure fund will operate by raising funds from the general public for private investment projects, targeting projects with total private investment exceeding 200 billion won, with a maximum investment limit of 100 million won per person. The fund's maturity will be set between 3 to 5 years, depending on the nature of the project.
Deputy Minister Cho Yong-beom expressed optimism that the committee's decisions would facilitate the commencement of the GTX-C project and resolve delays in the Bujeon-Masan Line's opening. He emphasized the need to actively identify investment projects for the public participation infrastructure fund to expand opportunities for the public to share in the profits and benefits of private investment projects.
* This article has been translated by AI.
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