Bidding begins for airport on blighted Jamboree site

Industry

Published: 16 Aug. 2023, 18:54 Updated: 16 Aug. 2023, 18:56

Bidding begins for airport on blighted Jamboree site

A rendering of the Saemangeum International Airport in North Jeolla [JOONGANG PHOTO]

Bidding for the construction of Saemangeum International Airport commenced Tuesday in the wake of the chaotic World Scout Jamboree event which recently wrapped up in the same area.

North Jeolla launched the bidding process for the construction of the Saemangeum airport, which will remain open until Thursday. The bidding announcement specifically pertains to the airside-related construction components employing the turnkey method.

The budget allocated for the Saemangeum International Airport project is set at 807.7 billion won ($604.11 million), with 510 billion won earmarked for construction alone. However, the backdrop of controversy related to the future feasibility of the Saemangeum airport has resurfaced in light of the havoc of the Jamboree event.

If the project goes through, the airport is designed to encompass a 2,500-meter runway, five aircraft parking stands, a passenger terminal, a cargo terminal and parking areas. According to initial projections, some 30 years after its commencement in 2058, the airport is anticipated to serve around 1.05 million passengers annually and handle approximately 8,000 tons of cargo.

Why an airport in Saemangeum?

The plans for the airport envision the commencement of construction in 2024, followed by an anticipated opening as early as in 2028.

Prior attempts to realize the ambition of North Jeolla were fraught with challenges primarily stemming from economic concerns.

A pivotal turning point occurred in 2019 when the former Moon Jae-in administration granted an exemption from the preliminary feasibility study (PFS), citing "regional balance development" as the impetus. The resulting PFS conducted by the Ministry of Land, Infrastructure and Transport established a Benefit-to-Cost Ratio (B/C Ratio) of 0.479 for the Saemangeum Airport. This indicates that a 100 billion won investment would yield an expected social benefit of 47.9 billion won. A B/C ratio of over one is generally considered acceptable when evaluating project viability.

North Jeolla urged the exemption from the PFS by underscoring the strategic importance of an international airport with global logistics and cited the hosting of the World Scout Jamboree event in Saemangeum.

The Saemangeum region currently lacks autonomously operated airports. The existing Gunsan Airport operates through the utilization of a U.S. military runway, resulting in certain operational limitations.

Members of the World Scout Jamboree in Saemangeum pack their belongings as they prepare to depart from the Jamboree site in Buan County, North Jeolla, on Aug. 8. [YONNHAP]

Using Jamboree as a pretext to secure Saemangeum-related SOC budget

The controversy surrounding the use of the Jamboree event as a pretext to secure funding for the Saemangeum International Airport and related social overhead capital (SOC) projects, such as harbors and road construction, has generated debate. This raised concerns about a lack of preparations for the Jamboree.

The Saemangeum project's inception dates back to President Roh Tae-woo's campaign promise in 1987, leading to groundbreaking in November 1991, with the primary objective of securing agricultural land. Despite progress made in constructing the world’s longest seawall in April 2010, subsequent development and land reclamation efforts encountered setbacks.

While working to attract the Jamboree, the Jeonbuk Institute, acting as a "think tank" for North Jeolla, also furnished documents indicating that "the successful bid for the Jamboree event laid the groundwork for the early development of Saemangeum's infrastructure."

The Institute emphasized the necessity of "a high-speed network linking North Jeolla" to facilitate a successful international event. Key infrastructural components, such as the Saemangeum East-West Highway, opened in November 2020, and the recently completed North-South Highway opened in July ahead of the Jamboree.

Rep. Song Eon-seok of the People Power Party argued that the total Jamboree budget, encompassing seven direct and indirect projects including the construction of the airport, amounts to 11 trillion won.

Governor Kim Kwan-young of North Jeolla speaks during a press conference on Monday, addressing the handling of the World Scout Jamboree in Saemangeum. [YONHAP]

Unrelated to Jamboree

North Jeolla, however, emphasizes the independent pursuit of the airport construction plan, asserting that it was unrelated to the Jamboree event.

North Jeolla Governor Kim Kwan-young dismissed allegations that the Jamboree event was exploited to secure substantial funding for the Saemangeum project, categorizing such claims as "dissemination of false information."

"The Saemangeum SOC aligns with the Saemangeum Basic Plan and seeks to enhance the investment environment and stimulate internal development," Kim told reporters in a press conference on Monday. "Including the exemption from the PFS for the Saemangeum International Airport, a privilege also extended to one to two projects for all cities and provinces during the Moon Jae-in administration for the purpose of the regionally balanced development."

Gov. Kim further refuted accusations of regional favoritism by drawing attention to forthcoming projects such as an airport for Busan's Gadeokdo and for the Daegu-North Gyeongsang region.

In addition, in the ongoing Saemangeum area, developments include substantial investments from battery companies and the initiation of a large-scale theme park project aimed at revitalizing the tourism sector.

An analysis conducted by Jeonbuk Institute indicates that designated specialized zones within the Saemangeum area could yield production volume, added value and employment opportunities. Additional gains are anticipated with the establishment of a railway station and an international airport in proximity to the Saemangeum Industrial Complex.

Members of the Joint Action for Nullifying the Saemangeum Airport hold a press conference on Sept. 28 in front of the Seoul Administrative Court in southern Seoul after filing a lawsuit for the cancellation of the plan for Saemangeum International Airport. [YONHAP]

Environmental concerns

Environmental groups in the region have voiced opposition to airport construction, expressing apprehension about the proposed airport site's impact on tidal flats inhabited by endangered species and rare organisms.

In 2021, a collective group comprised of 46 civic organizations from the North Jeolla region formed a Joint Action for Nullifying the Saemangeum Airport. Their efforts uncovered the presence of endangered species and rare organisms that were not accounted for in the initial draft of the environmental impact assessment, such as the white-fingered mud crab, batillaria, yellow-eyed frog, black-faced spoonbill and wagtail.

Legal action ensued with the joint action, accompanied by 1,308 individuals, filing a lawsuit in September 2022 to challenge the fundamental plan for the Saemangeum Airport. The first trial is currently underway.

The significance of tidal flats as carbon sinks and their role in carbon dioxide absorption has also been highlighted. Research conducted by Professor Kim Jong-seong of Seoul National University highlighted the sizable carbon storage and absorption capacities of Korean tidal flats.

"It is a problem selecting a construction company for the airport before the finalization of the environmental impact assessment," the collective group criticized, adding that "this is irresponsible governance."

Following the suspension of international flights by Fly Gangwon, the domestic check-in counter at Yangyang International Airport remains unattended on May 20. [YONHAP]

Does Korea need more airports?

The question of whether additional airports are necessary for a relatively small country like Korea remains a point of discussion.

Korea's existing airport infrastructure generally offers convenient access for the majority of its residents. According to the International Civil Aviation Organization, 99.8 percent of Korea's population has access to international air transport, compared to 74 percent of the world's population.

However, the pursuit of new projects, driven by political considerations and local interests, has at times been seen to result in expenditure without proportional benefits.

Among the 15 airports across the country, only Incheon, Jeju, Gimhae, Gimpo and Daegu consistently operate with a surplus. The remaining airports grapple with deficits attributed to limited passenger numbers.

Experts point out the ambiguity surrounding the exemption criteria for the PFS, suggesting that the categorization of "projects necessitating national policy pursuits for regionally balanced development and addressing urgent economic and social circumstances" lacks a precise definition and could potentially encompass a wide array of projects.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]