Uijeongbu City Discloses Compensation Payment Details for Resource Recovery Facility
Revealing the Transition Process to a Government-Funded Project to Restore Public Trust
Efforts for Transparent Compensation Payments and Minimizing Fiscal Expenditure
Uijeongbu City in Gyeonggi Province (Mayor Kim Donggeun) has disclosed details regarding the payment of compensation to project proposers that arose during the transition of the 'Resource Recovery Facility Modernization Project' from a private investment model to a government-funded project, as part of efforts to restore trust with citizens.
Yoon Sanghee, Director of the Environmental Resources Bureau, is explaining the progress of compensation payments related to the 'Resource Recovery Facility Modernization Project' at a press conference on the 10th. Provided by Uijeongbu City
On the 10th, Uijeongbu City held a press conference at the city hall press room, presided over by Yoon Sanghee, Director of the Environmental Resources Bureau. The city stated, "Since we have respected the citizens' choice and converted the project to a government-funded model, we will continue to disclose all processes transparently to enhance public trust."
This announcement was made to address concerns raised by some citizens regarding the compensation paid to the project proposer, and to secure the legitimacy and transparency of the project’s implementation.
The Resource Recovery Facility Modernization Project began in earnest after a 2016 technical assessment and a 2017 feasibility study concluded that relocation and expansion were necessary, as the existing facility, which had been in operation since 2001, had exceeded its service life.
In June 2017, a private investment project proposal was submitted, and in November 2018, the Public and Private Infrastructure Investment Management Center under the Korea Development Institute (KDI) completed its eligibility review.
However, in 2019, the release of the draft strategic environmental impact assessment led to strong opposition due to insufficient communication with local residents. Continued opposition from neighboring municipalities and residents caused the project to stall for an extended period.
As the project was delayed, there were concerns about social issues such as a potential waste crisis due to the accumulation of household waste and environmental pollution. Additionally, there were urgent concerns about increased waste disposal costs due to outsourcing and rising construction costs, with nearly 10 billion KRW in additional annual budget expenditures anticipated.
In response, Uijeongbu City began a comprehensive review in August 2022 and initiated a public discussion process in which citizens directly proposed solutions.
Reflecting citizens' opinions, the city decided to convert the project to a government-funded model. Accordingly, in December 2023, the city rejected the private investment project proposal and proceeded with compensation procedures for the proposal costs based on regulations related to the 'Basic Plan for Private Investment Projects.'
The project proposer initially demanded compensation exceeding 10 billion KRW, but there was a significant difference from the amount calculated by the city. The proposer’s initial demand exceeded 10 billion KRW, but after multiple rounds of negotiations based on the city’s own calculation standards, both parties agreed to set the compensation at 1.21 billion KRW.
The city included this amount in the 2024 main budget, completed all related procedures such as city council approval and public notice on the website, and executed the payment lawfully in accordance with legal grounds.
Regarding this, Uijeongbu City emphasized, "Through transparent and rational procedures, we have prevented unnecessary budget waste and minimized fiscal expenditure."
The Resource Recovery Facility Modernization Project is a subsidized project requiring national funding. Currently, the Korea Development Institute (KDI) is comprehensively reviewing the facility’s scale, including efficiency, maintenance, construction costs, and operating expenses.
To address citizens' concerns about odor and wastewater, Uijeongbu City is consulting with the Ministry of Economy and Finance on measures such as installing core facilities underground. In May, Mayor Kim Donggeun directly met with the Second Vice Minister of the Ministry of Economy and Finance to actively request that citizens' decisions be reflected.
Yoon Sanghee, Director of the Environmental Resources Bureau, stated, "Uijeongbu City decided to convert the project to a government-funded model in respect of the results of public discussions, and as the installation of a new incineration facility is urgent, we will push the project forward without delay. We will continue to enhance administrative trust by providing accurate information and maintaining ongoing communication with citizens."
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