In the Daewoo Engineering & Construction consortium that bid on the Busan Gadeokdo New Airport site development project, which will cost more than 10 trillion won, the share of Daewoo Engineering & Construction and Jungheung Construction Co., including Junghheung Group affiliates, exceeds 60%. Doosan Engineering & Construction Co. newly joined the consortium.
According to the construction industry on the 4th, with the deadline approaching on the 6th of this month for submitting the preliminary qualification (PQ) application and the joint supply agreement for the Gadeokdo New Airport site development project, the equity structure of the Daewoo Engineering & Construction consortium has been finalized.
The Gadeokdo New Airport project is an approximately 13 trillion won project to build key airport facilities, including a runway and breakwater, on a 6,669,000-square-meter site in the Gadeokdo area of Gangseo-gu, Busan.
There was a major change in equity within the Daewoo Engineering & Construction consortium in the second PQ bid. The previous equity of Daewoo Engineering & Construction was around 38%, but ahead of the second PQ, the consortium equity expanded to 55%. The other participants' equity ratios were Jungheung Construction Co. 9%, HJ Shipbuilding & Construction 9%, Dongbu Corporation 5%, BS Hanyang 5%, Doosan Engineering & Construction Co. 4%, and other regional firms 13%. The share of Jungheung Group affiliates expanded to 64%.
This equity structure was made possible as construction companies that had planned to join the Daewoo Engineering & Construction consortium withdrew one after another. Kumho E&C, Kolon Global, Ssangyong E&C, and the Hanwha construction division, which initially formed the consortium, dropped out, and Lotte E&C, which had considered participating, ultimately decided not to join, shifting that equity to Daewoo Engineering & Construction.
Since Daewoo Engineering & Construction is the only major builder included in the consortium for this large civil engineering project, concerns are emerging in the market. The site for the Gadeokdo New Airport has soft ground and a high level of construction difficulty, raising questions about whether Daewoo Engineering & Construction can shoulder the responsibility alone.
Daewoo Engineering & Construction said regarding these concerns that "based on the technological capabilities proven through successfully executing large-scale offshore projects at home and abroad, there will be no problem at all in carrying out the work if selected as the final construction consortium."
A Daewoo Engineering & Construction official said, "Daewoo Engineering & Construction has already completed a ground survey of the project site while preparing to bid for the Gadeokdo New Airport site development project," and added, "We plan to produce a design that applies the optimal plan by thoroughly analyzing the pros and cons of alternative construction methods and incorporating advice from external experts, and we will share this process with consortium participants."