HDC Hyundai Development Company Selected as Preferred Bidder for Seochang~Gimpo Expressway Project

[Asia Economy Reporter Yoo In-ho] HDC Hyundai Development Company announced on the 14th that it has been selected as the preferred negotiator for the SeoChang~Gimpo Expressway construction project, with a total investment of 900 billion KRW.

The SeoChang~Gimpo Expressway was promoted as the first third-party proposal public notice private investment project of this year. This was conducted under the “Private Investment in Social Overhead Capital Act” to receive construction and operation plans from operators other than the initial proposer and select a superior proposal.

The Ministry of Land, Infrastructure and Transport, the competent authority, comprehensively evaluated the route selection feasibility, design and construction plan adequacy, traffic demand estimation accuracy, and the appropriateness of plans for stable operation.

The HDC Hyundai Development Company consortium, the initial proposer of this project, was selected as the preferred negotiator after passing the first-stage evaluation (PQ) conducted in April and the second-stage evaluation (technical and price evaluation) conducted this month. The HDC Hyundai consortium consists of GS Construction, Geumgwang Enterprise, Taeyoung Construction, Doosan Construction, Daewoo Shipbuilding & Marine Engineering Construction, and HDC I Controls.

The SeoChang~Gimpo Expressway project connects underground a total length of 18.27 km from SeoChang JCT (Mansu-dong, Namdong-gu, Incheon Metropolitan City), where the 2nd Gyeongin Expressway and Yeongdong Expressway meet, through Jangsu IC of the Seoul Ring Expressway, to SinGimpo TG (Singok-ri, Gochon-eup, Gimpo-si, Gyeonggi-do).

This is a large-scale project with a total investment cost of about 900 billion KRW. It aims to smooth traffic flow in the western section of the Seoul Ring Expressway, where frequent congestion occurs, and connect the unlinked sections of the 2nd Gyeongin Expressway, Yeongdong Expressway, and Seoul Ring Expressway.

The HDC Hyundai consortium and the Ministry of Land, Infrastructure and Transport will form a negotiation team and start negotiations for the implementation agreement from next month. The project method will be a profit-sharing type private investment project (BTO-a: Build Transfer Operate-adjusted), where losses and profits are shared between the Ministry and the consortium. The target completion is 60 months after groundbreaking. The private operator’s operation period is 40 years after completion.

An HDC Hyundai official said, “We will do our best to contribute not only to resolving traffic congestion in the region but also to revitalizing the economy by reducing logistics costs. Based on our extensive civil engineering experience, we will expand various private investment projects in the infrastructure sector.”