Gyeonggi Province, Provincial Council Seek Solution for 'Gangdong-Hanam-Namyangju Line Sections 2 and 5' After Four Failed Tenders

Gyeonggi Province and Provincial Council Review Procurement Methods
Compare Negotiated Contracts With Separate Design and Construction Contracts
Discuss Minimizing Gap Between Wangsuk New Town Move-In and Railway Opening

Gyeonggi Province and the Gyeonggi Provincial Council have begun reviewing procurement methods to reduce construction delays on Sections 2 and 5 of the Gangdong-Hanam-Namyangju Line, a regional railway project that has seen four consecutive failed tenders. They compared the project schedule, costs and fairness of pursuing negotiated contracts under the existing design-build method with switching to separate design and construction contracts.

Route map of the Gangdong-Hanam-Namyangju Line. Provided by Gyeonggi Province.

Gyeonggi Province said on October 27 that it held a meeting on selecting a procurement method at the Northern Branch of the Provincial Council on October 26. Attendees included provincial council members, experts, officials from Namyangju and Hanam, and representatives from the Korea Land and Housing Corporation (LH) and Gyeonggi Housing and Urban Development Corporation (GH).

The Gangdong-Hanam-Namyangju Line is a 17.59-kilometer regional railway connecting Gangdong-gu in Seoul with Namyangju via Hanam. It will have eight stations and a total project cost of KRW 2.9334 trillion. The line is a key project in the regional transportation improvement plans for Wangsuk and Wangsuk 2, two third-phase new towns.

Detailed design is underway for Sections 3, 4 and 6 of the five sections overseen by the province. Sections 2 and 5 were put out to tender under a design-build method, but each tender failed four times because only one bidder submitted a bid. Construction costs are KRW 620.3 billion for Section 2 and KRW 386.1 billion for Section 5.

At the meeting, participants cited the potential for a negotiated contract under the design-build method to bring forward the start of construction and opening date compared with separate design and construction contracts. They said a fixed-price contract could reduce the risk of cost increases and clarify accountability, while also noting the need to strengthen measures to prevent poor-quality construction and ensure safety.

The “Other Construction” method, which separates design and construction contracts, was seen as a way to ensure competition and fairness. However, concerns were raised that construction could start later than under a negotiated contract, and that design changes could increase project costs or differences in construction schedules with other sections could lead to indirect costs.

Participants focused on narrowing the gap between the move-in schedule for 80,000 homes in Wangsuk and Wangsuk 2, where the first residents are due to move in in 2028, and the railway's opening date. They also discussed procedures to ensure fairness, project cost management, and quality and safety measures following the selection of a procurement method.

Provincial Council member Jang Songhoe said, “Minimizing construction delays is more important than anything else if we are to ease transportation difficulties for residents moving into new towns in the northeastern Seoul metropolitan area. I will consult with the provincial government so that a reasonable and transparent procurement method is adopted, taking into account the views of the Provincial Council, experts and local governments.”

Jo Jangseok, head of Gyeonggi Province's Balanced Development Planning Office, said, “I believe a certain degree of consensus has been reached on the project's urgency, economic viability and fairness. We will develop alternatives so that quality and safety issues can be thoroughly reviewed within the management framework proposed by experts.”

This content was produced with the assistance of AI translation services.