Construction cost increased to 1.7605 trillion KRW
Construction period extended from 5 years to 6 years
To be converted to a public investment project if private sector does not participate
Seoul City is seeking a new construction company for the 'Wirye-Sinsa Line' urban railway connecting Gangnam in Seoul and Wirye New Town. The construction cost has been increased by about 270 billion KRW, and the construction period has been extended.
Seoul City announced that it will conduct a third-party proposal reannouncement for the 'Wirye-Sinsa Line Urban Railway Private Investment Project' starting from the 16th. After announcing the plan to resume the Wirye-Sinsa Line project on June 11, the reannouncement period was advanced by one month from the original schedule due to a shortened review period by specialized institutions and active cooperation from the Ministry of Economy and Finance regarding administrative procedures.
The construction cost for the Wirye-Sinsa Line project, reflecting consumer price fluctuations, has been increased by 275.8 billion KRW from 1.4847 trillion KRW to 1.7605 trillion KRW. The construction period has also been extended from the basic 5 years to 6 years. The city explained that this reflects changes in the social environment, such as an increase in non-working days due to recent adverse weather conditions and ensuring appropriate working hours for workers. The purpose is to secure an adequate construction period to improve construction quality, safety, and economic efficiency, while reducing the burden on project proposers.
The city also plans to present the implementation agreement draft in advance to shorten the period required for negotiations after selecting the preferred negotiation candidate. Previously, a considerable amount of time was spent negotiating the total project cost and the implementation agreement draft after selecting the preferred negotiation candidate. A Seoul City official said, "We will include the implementation agreement draft, which has been negotiated with the previous negotiation candidate and pre-reviewed by specialized institutions, in advance to facilitate swift progress."
The city plans to receive the first-stage pre-qualification documents by the 25th of next month, conduct the second-stage evaluation process by November 25, and select the preferred negotiation candidate in December. It is expected that private participation and project capability eligibility will be identified in the first stage, so the decision on whether to proceed with the private investment project will likely be confirmed by the end of next month. The city plans to convert the project to a public investment project if no participants apply.
The Wirye-Sinsa Line is a light rail line connecting Wirye New Town and Sinsa Station (Line 3) in Gangnam-gu, Seoul. It will have a total length of 14.7 km, with 12 stations planned in areas including Daechi-dong and Samseong-dong in Gangnam-gu, and Garak Market in Songpa-gu. Although it is a long-awaited project for the residents of Wirye, who suffer from insufficient public transportation, the project has been stalled for 16 years due to issues such as profitability and conflicts over increased construction costs, leading the main construction companies to abandon the project rights.
Yoon Jong-jang, Director of the Seoul City Transportation Office, stated, "We have prepared various measures to improve project conditions and shorten administrative procedures to select the optimal negotiation candidate for the Wirye-Sinsa Line. We will make every effort to ensure the project proceeds smoothly until construction begins."
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