Refer Report
Bird’s eye view of the new Gadeokdo Airport. Courtesy of the Ministry of Land, Infrastructure and Transport
The Gadeokdo New Airport site development project has failed to go to auction again.
The Ministry of Land, Infrastructure and Transport announced on the 5th that the results of the 4th Gadeokdo New Airport site development project re-announcement resulted in the bid being rejected as the joint procurement body (consortium) led by Hyundai Construction submitted a sole pre-screening application.
The first round of bidding in June was canceled due to no bidders, and the second round was unsuccessful as only the Hyundai Construction consortium participated. In the third round of bidding, POSCO E&C participated in addition to 24 companies that participated in the second round, including Hyundai Construction and Daewoo Construction, but the bid was unsuccessful. Hyundai Construction has the highest stake in the consortium at 25.5%.
As the bids have been rejected four times after the announcement, the possibility of political circles gaining power in their demands for a negotiated contract has increased. According to the State Contracts Act, contracts involving the state as a party are in principle subject to competitive bidding, but in exceptional cases where it is unavoidable, a negotiated contract may be used.
If the weight is shifted towards a veterinary contract, it is unlikely that the Hyundai Construction consortium will break up the existing consortium and bid individually.
At the plenary session of the Land, Infrastructure and Transport Committee held at the National Assembly on the 21st of last month, Rep. Kim Do-eup of the People Power Party said, “The Ministry of Land, Infrastructure and Transport has truly done everything it can to adhere to the principles of competitive bidding,” and demanded, “Now is the time to enter into a negotiated contract as stipulated by law to ensure the smooth progress of public projects.”
The Ministry of Land, Infrastructure and Transport announced, “We believe that the construction project for the Gadeokdo New Airport needs to be pushed forward quickly. After reviewing related laws and similar cases, we plan to finalize the project promotion plan as soon as possible after consulting with experts and relevant ministries.”
Source: Korean