On the 25th, it was learned that the Gadeokdo New Airport site development project in Busan will proceed through a negotiated contract with a consortium led by Daewoo Engineering & Construction.
According to the Gadeokdo New Airport Construction Authority (the authority) that day, the project's two bidding notices drew a sole bid from Daewoo Engineering & Construction and were rendered void. In response, the authority decided to proceed not by bidding but through a negotiated contract with the Daewoo Engineering & Construction consortium.
With the shift to a negotiated contract, the Public Procurement Service is expected to conduct a prequalification review of the Daewoo Engineering & Construction consortium. At that time, the Public Procurement Service will comprehensively evaluate the consortium's construction experience, technical capacity and management condition.
In the Daewoo Engineering & Construction consortium, the lead firm, Daewoo Engineering & Construction, holds 55% equity. The remaining equity stakes are 9% each for HJ Shipbuilding & Construction and Jungheung Construction, 5% each for Dongbu Corporation and BS Hanyang, and 4% for Doosan Engineering & Construction Co. Thirteen construction companies in the Busan-South Gyeongsang region together hold a total of 13% equity.
The government plans to tighten oversight to prevent disruptions to the project, such as delays in payments for subcontracts, labor, and equipment and materials, and to focus its efforts on opening in 2035.
Meanwhile, a consortium including Hyundai Engineering & Construction, Daewoo Engineering & Construction and POSCO E&C had been selected as the preferred negotiating partner for the Gadeokdo New Airport site development project. However, in May last year, Hyundai Engineering & Construction differed with the government over extending the construction period and ultimately decided not to participate. POSCO E&C also left the consortium, saying it would suspend new infrastructure orders.