Nation's First 'Public Contest-Type Private Investment Project' Begins
Three Sites Including Former Seongdong Detention Center Special District 6
Seoul City is launching the nation's first "competitive private investment project," where it publicly discloses available public sites and invites private sector business proposals. The first public sites disclosed by the city include part of the former Seongdong Detention Center site, as well as public parking lots in Gaebong-dong and Gaehwasan Station, totaling three locations.
On the 5th, Seoul City announced the public sites for the "competitive private investment project" and stated that registration for participation will be accepted until the 15th. The sites disclosed this time are ▲the former Seongdong Detention Center Special District 6 site in Garak-dong, Songpa-gu ▲the public parking lot in Gaebong-dong, Guro-gu ▲the public parking lot at Gaehwasan Station, Gangseo-gu. The city plans to hold a business briefing session on the 8th regarding the project details and the sites.
Until now, private investment projects have started with the private sector directly discovering public sites for project promotion, establishing business plans, and submitting proposals. This approach has faced criticism for hindering project activation due to difficulties in site discovery and uncertainties in the project, which impose burdens on initial investments. Seoul City judged that a new business model is needed to revitalize private investment projects and, in consultation with the Ministry of Economy and Finance, established this system last month.
Private businesses expressing their intention to participate in this competition can submit their business plans by January next year. The city will select outstanding proposals in February after preliminary review and evaluation. From the early stages of the project, the city plans to collaborate with the private sector to concretize the project details. In this process, the city aims to minimize the burden on private businesses and ensure project execution capability. Outstanding proposers who submit business plans agreed upon with the city will be granted the status of the initial proposer under the Private Investment Act.
Proposals for social infrastructure and ancillary facilities according to detailed guidelines for each site are also possible. A Seoul City official said, "By utilizing the private sector's planning capabilities, we expect to supply high-quality public facilities featuring innovative ideas," adding, "Innovative buildings and convenient living facilities will be established in the areas around the target sites."
Im Chang-su, Director of Future Space Planning, said, "Unlike previous private investment projects focused mainly on transportation infrastructure, this competition is meaningful as a newly introduced project to supply public facilities closely related to daily life," and added, "As Seoul City is the first to implement this system since its establishment, we will faithfully carry out the project to present a standard model for revitalizing private investment projects."
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