Gyeongsan City Signs Implementation Agreement for Private Investment Project (BTO) to Expand Resource Recovery Facility

Second half of 2021 construction start, operation target in second half of 2023

Perspective view of the Gyeongsan City Resource Recovery Facility Expansion Private Investment Project (BTO-a) Implementation Agreement. / Gyeongsan City

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Jae-ho] Gyeongsan City announced on the 19th that it has signed an implementation agreement for the resource recovery facility expansion private investment project (BTO-a) with the tentative Clean Energy Corporation.

Gyeongsan City received the project proposal in March 2018, issued a third-party proposal announcement in December 2019, and designated the tentative Gyeongsan Clean Energy Corporation as the preferred negotiator in May 2020. Since then, through design VE and negotiations on total project costs and operating expenses, the foundation for project promotion was established by signing the implementation agreement this time.

After completing administrative procedures such as environmental impact assessment and implementation plan approval, Clean Energy Corporation will construct incineration facilities (70 tons/day), waste heat recovery facilities (1900 kW), and sewage sludge drying facilities (10 tons/day) in the area of 247 Yongsan-ri, Yongseong-myeon, Gyeongsan City, aiming to operate them in the second half of 2023.

The management and operation period is 20 years, and it is a profit and loss sharing type private investment project (BTO-a, Build Transfer Operate adjusted) with a total project cost of 41.987 billion KRW.

Choi Young-jo, Mayor of Gyeongsan City, said, "This project is an incineration facility expansion project to stably prepare for the increase in household waste generation due to population growth from large-scale housing development projects, and it is expected to create a more pleasant and safe local living environment for Gyeongsan citizens."