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A POSCO E&C-affiliated consortium is to construct and manage Yongin Ecotown, a project worth 600 billion KRW

JUN 26 ,2019

Attached file :

- The largest-ever privately funded environmental project in South Korea … a total project cost of 242.3 billion KRW and an operating cost of 378.3 billion KRW
- On the 25th, the consortium was chosen as a preferred bidder

Human Eco Land, a consortium that POSCO E&C takes part in as a representative, was chosen as a preferred bidder for the Yongin Ecotown Construction Private Investment Project, worth 600 billion KRW.

The Yongin Ecotown Construction Private Investment Project is South Korea’s largest-ever privately-funded BTO-a* project in the environment sector, with a total project cost of 242.3 billion KRW and a 20-year operating cost of 378.3 billion KRW. Construction is scheduled to commence in December 2020 and last 48 months, and POSCO O&M will oversee facility operations starting December 2024, when the construction will have been completed.
* BTO-a, build transfer operate-adjusted: When profits arise, the government and the private sector divide them at a ratio of 7 to 3. In the event of a loss, if the amount is 30% or less, the loss is borne by the private sector, and if the amount is more than 30%, the government gives financial support to the private sector.

The project first started being discussed in May 2016, when POSCO E&C's consortium Human Eco Land submitted to the city of Yongin a proposal for a private investment project, and after the city conducted a pre-qualification examination (PQ) three times this year, Human Eco Land has eventually been chosen as a preferred bidder.

The Yongin Ecotown Construction Project is a comprehensive environmental facility project that aims to integratedly process the Yongin area’s sewage which is continuously increasing due to development, by building underground facilities for processing sewage (12,000㎥ per day), food waste (250 tons per day), and sewage sludge (220 tons per day) on 51,046㎡ of land in Pogok-eup, Cheoin-gu, Yongin-si while building eco-friendly convenience facilities for residents above ground.

The planned convenient facilities include a baseball park with an outfield of 105 m, four tennis courts, and an indoor gymnasium, and they are expected to allow residents enjoy a variety of leisure activities.

POSCO E&C, which has been leading the smart construction sector, plans to apply smart construction technology to this project as well. POSCO E&C is seeking to minimize design errors and dimensional deviations through building information modeling (BIM) based design and construction safety management. In particular, POSCO E&C plans to check for displacements in real-time and prevent safety incidents through its own technology, CCTV-based temporary earth retaining wall safety monitoring system.

POSCO E&C is expected to be able to conclude a concession agreement in the first half of next year once the project has been approved by the Private Participation in Infrastructure Deliberation Committee of the Ministry of Strategy and Finance after discussions and basic design value engineering with the city of Yongin and the Korea Environment Corporation scheduled at the end of the year, which will follow a commencement meeting on the 27th.

"POSCO E&C has made ourselves the overseer of South Korea's largest-ever privately-funded environmental project, taking charge of planning, design, financing, construction, and management. As such, we expect this project to serve as an occasion to further raise POSCO E&C's standing in the environment sector,” a POSCO E&C official said. “In addition, this project is the first joint project we have landed since the launch of POSCO O&M in February this year, and we believe it will become a core project that will drive our growth in the infrastructure sector.”