Busan Urban Corporation Signs Agreement for Eco Delta City Public Housing Project with Private Consortium

12BL to DL E&C, 15BL to Kyungdong Construction 'Con'

Supplying Public Housing Reflecting Technical Skills and Latest Trends

Busan Metropolitan Corporation (BMC, President Kim Yonghak) announced on the 29th that it had signed a business agreement on the 23rd for the construction of public housing with private sector participation in Blocks 12 and 15 of Eco Delta City.

This project involves the construction of small and medium-sized public housing within the waterfront district of Eco Delta City in Gangseo-gu, Busan. Block 12 will provide 1,257 units of public sale housing (exclusive area 59~84㎡), and Block 15 will supply 993 units of public rental housing (exclusive area 29~59㎡). The final details will be confirmed through design and permitting processes.

After a call for private sector participants in January, BMC conducted an evaluation in March. The DL E&C consortium was selected as the preferred bidder for Block 12, and the Kyungdong Construction consortium for Block 15, with business agreements recently signed with both.

The agreement, based on a public-private partnership model, includes details such as project duration, settlement of project costs, and defect repairs. BMC will be responsible for providing land and managing the construction project, while the private sector participants will handle all construction-related tasks including design, construction, sales, and defect management.

Notably, the agreement establishes standards for adjusting project costs in response to unexpected sharp increases in prices, aiming to alleviate difficulties faced by construction companies due to high inflation and interest rates. It also includes provisions allowing BMC to prepay project costs if financing becomes difficult due to a sluggish housing market, focusing on the public policy goal of revitalizing the local construction industry.

Starting with the signing of this agreement, BMC plans to expedite the design phase, integrated public housing review, and housing construction project approval processes to ensure that public housing reflecting private sector expertise and the latest trends is supplied smoothly.

Kim Yonghak, President of Busan Metropolitan Corporation, stated, "We will proceed with the project, including the permitting process, without any setbacks to provide high-quality public housing to citizens without homes, including young people and newlyweds." He added, "We will continue to promote public housing projects to boost the housing market and improve residential stability and welfare for Busan citizens."