Do: "Selecting a New Operator Takes Time and Lawsuits Cannot Be Avoided"
OnTheWest Consortium Delays Deposit Payment Twice Due to Construction Market Downturn
It appears that Chungnam Province will continue to pursue the Anmyeondo tourism development project in cooperation with the OnTheWest Consortium, despite ongoing difficulties.
Lee Jongkyu, Director of the Provincial Balanced Development Bureau, stated at the 1st Construction and Firefighting Committee of the 354th temporary session held on the 17th, "If we terminate the contract and recruit a new operator, it will take between one year and two and a half years," adding, "Since the developer has established a special-purpose corporation, it seems possible to proceed by simply changing the main representative."
He continued, "Since more than 10 billion won has already been invested, if the project is halted here, we cannot rule out the possibility of litigation. We have already requested the developer to present a plan and conditions for project implementation," and added, "A conclusion should be reached in about three months."
The OnTheWest Consortium, which includes eight domestic and international companies, signed a business agreement with the province in 2022 to develop the Anmyeondo tourism site.
However, citing the downturn in the construction market and other reasons, the consortium failed to pay the 7 billion won investment performance bond despite two deadline extensions, putting the project at serious risk.
Yoon Heeshin, a member of the National Power Party (Taean 1), said, "As the project has been reversed several times, residents' trust in the Anmyeondo project is declining," and urged, "Since conditions in Anmyeondo have improved compared to the past, please make every effort to ensure success this time."
Meanwhile, the Anmyeondo tourism development project in Chungnam Province was first designated as a project site in 1991 and pursued as a public development project until 2001, but it was canceled. In 2006, a public offering was held for a private developer, and the Inter-Pacific Consortium was selected as the preferred negotiator, but the developer withdrew.
In 2016, the Lotte Consortium was selected as the preferred negotiator for the development of District 3, but the project was delayed and their qualification was revoked. In 2019, a main contract was signed with KPIH Anmyeondo as the developer, but the contract was terminated after KPIH Anmyeondo failed to pay the first investment performance bond. As the project has been adrift for several years, a new development approach was introduced to attract private developers.
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