District Heating Public Corporation, Mandatory Participation of Local Companies in Bidding for Self-Ordered Construction Projects

Korea District Heating Corporation Yangsan Branch. (Photo by Korea District Heating Corporation)

[Asia Economy Reporter Moon Chaeseok] Korea District Heating Corporation (KDHC) has relaxed the qualification criteria for bidding on its construction projects to promote win-win cooperation with local small and medium-sized construction companies.

On the 26th, KDHC announced that it has changed the criteria so that local small and medium-sized construction companies without construction performance records must form a mandatory consortium to participate in bids for construction projects ordered by the corporation.

The minimum equity share of local companies was set at 30% or more.

Last month, KDHC reflected the improved bidding participation criteria in the bidding for construction work to ensure stable heat supply in the Sasong district of Yangsan City, Gyeongnam Province.

As a result of the bid opening, Daejeo Construction (70%) and Jungang Construction (30%) from the Gyeongnam region were selected as the first priority, producing results that aligned with the purpose of the improvement.

A KDHC official said, "With this improvement in criteria, the order rate for local small and medium-sized companies will increase, which will also help alleviate financial difficulties," adding, "We expect it to contribute to revitalizing the local economy, which has been depressed due to the novel coronavirus disease (COVID-19)."