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Suyeong Wastewater Treatment Facility Modernization Project Set to Begin in Earnest – Approved by the Private Investment Project Deliberation Committee of the Ministry of Economy and Finance!

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Busan Metropolitan City (Mayor Park Heong-joon) announced today (8th) that the “Suyeong Wastewater Treatment Facility Modernization Project” has been designated as a project eligible for private investment following deliberation by the Private Investment Project Deliberation Committee of the Ministry of Economy and Finance.

The city completed the review of the draft announcement for a third-party proposal with the Korea Development Institute (KDI) in May and submitted the draft to the second meeting of the Private Investment Project Deliberation Committee for deliberation and designation as a private investment project. The city received the approval today (8th).

This achievement follows the qualification approval from the Korea Development Institute (KDI) in December 2024 and was the result of close coordination with the Ministry of Economy and Finance and KDI, in strict accordance with the project implementation plan.

With this, the “Suyeong Wastewater Treatment Facility Modernization Project” has been officially recognized by the Ministry of Economy and Finance as urgent and necessary, securing the legal basis for pursuing the project via private investment and finalizing the details of the draft announcement for a third-party proposal.

According to Article 8-2 of the Private Investment Act, the designation as a project eligible for private investment means that the modernization project is confirmed to be suitable for implementation via private investment, based on assessments of its alignment with medium- to long-term plans and national investment priorities for social infrastructure.

During the deliberation process for designating the project as eligible for private investment, the review comments provided by the Korea Development Institute (KDI) regarding the draft announcement for a third-party proposal were faithfully incorporated. As a result, the proposed user fees were reduced, leading to an estimated fiscal saving of approximately KRW 90 billion over 30 years compared to the original proposal, and a fair evaluation framework for participating companies has been established.

In response to the project’s designation as eligible for private investment, Busan Metropolitan City plans to expedite the consent process with the City Council and accelerate project implementation by selecting a preferred bidder through the third-party proposal announcement.

The city aims to submit the proposal to the City Council and swiftly carry out the third-party proposal announcement in July. Through this, it will receive proposals for the facility’s construction and operation, select a preferred bidder with excellent technical capabilities while minimizing the city’s financial burden, and make the selection within this year.

Notably, the “Suyeong Wastewater Treatment Facility Modernization Project” is not merely a reconstruction of an old wastewater facility, but a vital project aimed at transforming the area into a cultural space within the city and maximizing land use around the Suyeong River area to create new opportunities for urban development. Busan Metropolitan City will continue close coordination with the Ministry of Economy and Finance to promptly proceed with procedures such as signing the implementation agreement and obtaining implementation plan approval, targeting a construction start in 2026.

Mayor Park Heong-joon stated, “Now that the modernization project has been confirmed for private investment, we plan to move the project forward more rapidly based on this momentum,” adding, “We will do our utmost to create a global hub city and a happier Busan for citizens through the rebirth of the Suyeong Wastewater Treatment Facility.”