Jeonbuk Chapter of Korea Electrical Contractors Association, "Will Completely Refuse Participation in Saemangeum Solar Power Project"

The Jeonbuk Chapter of the Korea Electrical Contractors Association held a press conference on the 28th at the briefing room of the Jeonbuk Provincial Council, raising concerns about the unilateral bidding method of the Saemangeum Development Corporation and allegations of collusion in the development history of public enterprises.

[Asia Economy Honam Reporting Headquarters Reporter Lee Young-tae] The Jeonbuk Chapter of the Korea Electrical Contractors Association (President Yang Gwan-sik) held a press conference on the 28th at the Jeonbuk Provincial Council briefing room, raising issues about the unilateral bidding method of the Saemangeum Development Corporation and suspicions of collusion among public enterprise power companies.

The association stated, “The original order volume for the Saemangeum Development Corporation's solar power project was over 100MW, but it has been lowered to 50MW to provide business participation opportunities to local companies rather than large corporations. Most large corporations subcontract only to their affiliated companies, so there is no meaning in regional coexistence.”

They continued, “The Saemangeum Sebit Power Plant consortium, selected as the preferred negotiation candidate, suddenly declared non-participation, leaving only Korea Midland Power Company participating alone,” and raised the issue, “This is a suspicion of collusion among public enterprise power companies.”

Additionally, they pointed out, “Looking at the construction ratio of the Saemangeum solar power project, civil engineering accounts for only 5% of the total, yet the consortium is composed of 85% civil engineering and 15% electrical, so the ratio itself is problematic.”

President Yang Gwan-sik stated, “Participation of public enterprise power plants should occur not at the bidding stage but after completion, allowing price autonomy according to demand. If this principle is not observed, the electrical construction industry in the province will completely refuse to participate in the Saemangeum solar power plant project.”