Ministry of Economy and Finance "Preparing 'Preliminary Feasibility Study System Reform Plan' by the End of August"
[Asia Economy Sejong=Reporter Son Seon-hee] The Susaek-Gwangmyeong high-speed railway construction project, with a total project cost of 2.4823 trillion KRW, has passed the preliminary feasibility study (PFS). Additionally, the Busan Urban Railway Hadan-Noksan Line construction project (1.1265 trillion KRW), Gimhae Airport-Daedong Highway expansion project (326.1 billion KRW), and Nakdong River Basin Safe Drinking Water Supply System Establishment project (2.4959 trillion KRW) have also passed the PFS and will commence.
Furthermore, three projects?the Cheonan-Cheongju Airport double-track railway construction project (556.3 billion KRW), the restoration of the former Jeonnam Provincial Office (47.2 billion KRW), and the relocation and construction of the National Jinju Museum (88.5 billion KRW)?have passed the feasibility re-examination and are planned to be promoted with future budget allocations.
On the 30th, Choi Sang-dae, Vice Minister of Strategy and Finance, held the '2022 2nd Fiscal Project Evaluation Committee' meeting to review and approve the results of the preliminary feasibility studies and feasibility re-examinations, as well as the appropriateness review and re-review of project plans. The committee also reported and discussed agenda items regarding the reform direction of the preliminary feasibility study system.
The Susaek-Gwangmyeong high-speed railway construction project involves establishing a dedicated high-speed railway line (double-track electrified railway) underground along the section, separate from the existing conventional railway and subway lines that currently operate together. According to the Ministry of Strategy and Finance, with the PFS approval, the addition of the dedicated line will secure extra track capacity, improve high-speed train operation speeds, and enhance railway services through the deployment of additional rolling stock. The project period is until 2028.
The project to construct an unmanned light rail transit between Busan's Hadan Station and the Noksan Industrial Complex aims to provide urban railway services to the densely industrialized area nearby. It is expected to alleviate severe commuting traffic congestion in the western Busan area, where public transportation conditions are poor.
At the committee meeting, the project scale and plans for four projects that completed the appropriateness review and re-review procedures were also finalized and approved: the Gwangmyeong City Resource Recovery Facility installation project (approximately 150 billion KRW), Namyangju City Resource Recovery Facility private investment project (186.9 billion KRW), Jeonju area metropolitan landfill recycling maintenance project (approximately 90 billion KRW), and Seonghwan~Ipjang (National Local Road No. 70) road construction project (approximately 120 billion KRW). These four projects will proceed with annual budget allocations following total project cost negotiation and modification procedures.
Meanwhile, the government also discussed future reform plans for the PFS system. The Ministry of Strategy and Finance announced it will operate the PFS system strictly to enhance fiscal efficiency and strengthen fiscal discipline. It will specify exemption conditions for the PFS and minimize unnecessary exemptions.
Secondly, plans are in place to improve the speed and flexibility of PFS operations. To respond to urgent policy demands and ensure timely project implementation, a 'rapid PFS procedure' will be introduced to shorten the investigation period compared to the standard PFS when certain conditions are met. Additionally, benefits reflecting safety, environment, and quality of life will be incorporated, expanding beyond the previous focus mainly on economic feasibility.
The Ministry of Strategy and Finance stated, "We plan to prepare the 'Preliminary Feasibility Study System Reform Plan' by the end of August after additional opinion gathering related to the PFS system reform through expert meetings, forums for in-depth discussions on detailed reform tasks, and meetings with ministries and local governments."
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