The Daewoo E&C consortium seeking to take part in the "Gadeokdo New Airport" site development project faced friction over its builder lineup even before bidding. Mid-sized companies that had hoped to participate since the Hyundai Engineering & Construction consortium last year pulled out one after another, and Lotte E&C, which had been seen as a likely participant, failed to finalize initial participation, complicating equity adjustments. Daewoo E&C plans to first secure the equity of builders considering participation on its own and then move to readjust the consortium's equity later.
According to the Ministry of Land, Infrastructure and Transport and the construction industry on the 16th, the Gadeokdo New Airport Construction Authority will accept applications for the pre-qualification (PQ) for bidders for the Gadeokdo New Airport site development project until 6 p.m. that day.
The Daewoo E&C consortium, seen as likely to bid alone for this project, ran into noise over adjusting participants and equity ratios ahead of the PQ filing. Some mid-sized firms that had initially agreed to join the consortium were dissatisfied with the equity ratio adjustments and dropped out. Following decisions by KCC E&C, Hyosung Heavy Industries, and HL D&I Halla Co., Ltd. to leave the consortium, Ssangyong E&C also opted out. This means about half of the mid-sized builders that had expressed intent to bid for the site development work will not participate.
A construction industry official said, "With the equity of mid-sized builders at the minimum threshold of 4%, I understand some companies became dissatisfied after seeing a plan to allocate around 10% equity each to Hanwha and Lotte E&C, which joined late, and 5% equity to HJ Shipbuilding & Construction."
Lotte E&C, which had been seen as likely to join the consortium, was also left off the list for this PQ filing. The reason was that internal decision-making had not been completed. Lotte E&C is likely to join the consortium in the second PQ. If the Daewoo E&C consortium bids alone for the Gadeokdo New Airport site development PQ, the bid will fail and a second PQ will be held.
The Daewoo E&C consortium plans to proceed with the PQ filing that day after going through equity adjustments. Daewoo E&C's equity within the consortium was initially expected at 38%, but with Ssangyong E&C dropping out and Daewoo E&C absorbing that stake, its equity is expected to rise to 42%. In addition, as Daewoo E&C will first secure roughly 10% equity for Lotte E&C, whose participation has not been finalized, Daewoo E&C's equity is expected to exceed 50%. The remaining equity of the consortium is projected to allocate about 10% to Hanwha Co., Ltd., 4% each to mid-sized builders, and 12% to local companies.
Daewoo E&C said that because this project is highly likely to receive a sole bid at the PQ stage, further equity adjustments will follow. A Daewoo E&C official said, "The consortium's equity will be finalized at the second PQ filing."
The Ministry of Land, Infrastructure and Transport also plans to decide the next steps of the project depending on this PQ filing. A ministry official said, "Equity issues within the consortium are for the private sector to resolve," adding, "We will select the bidder best suited to carry out the project."