Ministry of Land, Infrastructure and Transport Receives Statement from Hyundai E&C
Regarding Request to Revise Basic Design
The Ministry of Land, Infrastructure and Transport announced on May 8 that it has decided to halt the negotiated contract process with the Hyundai Engineering & Construction consortium (hereafter Hyundai E&C) for the site development project of Gadeokdo New Airport.
This decision follows Hyundai E&C's submission to the ministry on the same day, stating that it would not revise its basic design plan, which extends the construction period for the Gadeokdo New Airport site development project to 108 months (9 years), two years longer than the original plan. Previously, on April 28, the ministry had requested Hyundai E&C to provide specific reasons after the company submitted a design proposal with a construction period extended by two years from the 84 months indicated in the bid notice.
Hyundai E&C explained that an additional 17 months would be needed for the stabilization of soft ground, and another 7 months would be required due to adjustments in the construction sequence, resulting in a total extension of 24 months. While the original notice called for simultaneous construction of the breakwater and land reclamation, Hyundai E&C argued that reclamation should begin only after a portion of the breakwater has been built.
The Gadeokdo New Airport site development project had previously failed to attract multiple bidders several times, resulting in Hyundai E&C being the sole bidder and proceeding with a negotiated contract and subsequent procedures. Since the relevant laws do not allow changes to the contract terms, the project must either proceed as originally planned or undergo a new bidding process. As Hyundai E&C has made it clear that it cannot carry out the project under the original terms, industry observers believe that a new bidding process is now the most likely outcome.
The ministry, together with the Gadeokdo New Airport Construction Corporation, is forming a joint task force based on Hyundai E&C's basic design and the existing master plan to analyze technical feasibility. Starting May 13, the ministry plans to further review the appropriate construction period and other factors through expert advisory meetings based on the task force's findings. The ministry stated, "We plan to swiftly establish a normalization plan for the project that ensures safety and quality while minimizing schedule delays."
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