Gwangju City Council Proposal 'Improvement of Sewerage Project Subsidy Rate' Adopted by National Chairpersons Association

Kim Yongjip, Chairman of the Gwangju Metropolitan Council.

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] The Gwangju Metropolitan Council (Chairman Kim Yongjip) proposed the "Proposal to Improve the National Subsidy Rate for Sewerage Projects in Special and Metropolitan Cities," which was adopted on the 28th at the National Council of Chairpersons of Provincial Councils.

The proposal includes ▲ raising the national subsidy rate for public sewerage facilities and reconstruction projects in special and metropolitan cities to 50%, the national average for subsidy projects ▲ ensuring the state fulfills its responsibility as sewerage projects require management by watershed and region as national projects.

While sewerage affairs are mostly handled by basic local governments such as cities and counties in provinces, in special and metropolitan cities, the metropolitan government directly manages these affairs instead of the basic local government districts.

Despite the important public function of sewerage affairs, national financial support is applied differently depending on the case.

In particular, the expansion of facilities for sewerage affairs in special and metropolitan cities receives only 10% government financial support, placing a heavy burden on finances.

The current "Enforcement Decree of the Act on Subsidy Management" subdivides national sewerage subsidy projects into seven categories and sets subsidy rates between 10% and 80% for each project.

The subsidy rate standards are higher for cities and counties, lower for metropolitan cities, and there is no standard at all for special cities.

Sewerage (pipelines and treatment facilities) projects contribute to creating a healthy water environment by ensuring citizen safety and improving the quality of discharged water, making them very important public goods directly related to citizens' health.

Nevertheless, budgets necessary for new sewerage supply and aging facility improvements are currently covered by each local government's budget based on the principle of beneficiary pays.

Accordingly, the Council of Chairpersons proposed that the state bear 50% of the budget used for public sewerage installation and reconstruction projects among sewerage projects in special and metropolitan cities.

Kim Yongjip, Chairman of the Gwangju Metropolitan Council, said, "Although sewerage affairs in our country have an important public function, the government has so far only talked about fee rationalization and responded passively," adding, "We will actively strive to ensure that the proposal leads to institutional improvements in the future."