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Public and Private Sector Teams up to Organize and Support Team Korea... Wins Bid for Overseas Airport
□ MOLIT (Minister Kim Hyun-mee) announced on Jun 25 (Tue), 2019 that he Peruvian government gave the bid for the new Chinchero Airport PMO project through a government-to-government (G2G) contract to Korea (selected as preferred negotiation partner).
ㅇ The new Chinchero Airport PMO project is on overseeing the overall project on behalf of the orderer (Peruvian government) for △contract management to select companies to participate in construction, △project process and quality management, △design review, △, test operation, etc.
ㅇ The project period shall be five years (new airport construction period ‘19 - ’24) and the cost of the project is approximately 30 million USD (35 billion KRW).
□ Velasco Astete International Airport that is used to travel to Machu Picchu, a world heritage of Peru, is located in a mountainous region that threatens safe flights and it is surrounded by commercial buildings and residences, and therefore, night flights are restricted due to complaints over noise issues.
ㅇ In order to overcome such limitations and to create a tourism for global tourism, the government of Peru pursued a new airport to take the place of the older airport.
□ The Peruvian government planned this project as a G2G contract and PMO method to ensure safety during the course of pursuing the project and to offset the lacking airport construction experience and technological capacities.
ㅇ Peru requested countries possessing successful airport construction and operations experiences to participate in this project.
ㅇ A total of six countries such as Korea, Spain, Canada, England, France and Turkey submitted their letters of intent (Oct ‘18).
□ MOLIT organized and operated a Korean consortium (Korea Airports Corporation, Dohwa, Kunwon, Hanmi Global) to draft the business proposal, while also organizing Team Korea (MOLIT, Korea Airports Corporation, International Contractors Association of Korea, KOTRA) to win the project bid as they engaged in support activities.
ㅇ The infrastructure cooperation delegation (Director General for Airport and Air Navigation Policy, Manager of the Overseas Construction Policy Division, and the CEO of the Korea Airports Corporation) three times and also sent employees (Korea Airports Corporation) to Peru, while also focusing on constructing a Korea-Peru network with the Korean Ambassador in Peru (Ambassador Cho Joon-hyuk), while checking information.
ㅇ In addition, the overseas airport development task force was launched (Feb ‘19) joined by industry, academic, research, financial institutes, and government to continuously search for ways to support the bid in technological, institutional and financial aspects.
□ Afterwards, a total of four countries such as Korea, Spain, Canada and Turkey submitted final business proposals (May 20, 2019) and the Peruvian government held evaluations (technology and price) to finally select the Korean consortium as the preferred negotiation partner.
□ This bid
is a G2G contract project that is the first in the infrastructure sector,
is a joint entry by the private-public (private companies and the government) through the support of Team Korea,
can promote the excellence of Korean technologies worldwide through the construction of a global tourism international airport,
is the first K-Smart Airport that uses advanced technologies such as biometrics and AI, 4D design, and establishment of a smart city linked to the airport,
will act as a bridgehead for Korean companies to enter Central and South American markets, and
and is meaningful in that it entered the airport construction PMO market, which is a stage for major advanced nations.
□ The Chinchero New Airport Project is expected to enter the inter-governmental agreement by late July after negotiating contract terms such as the contract period and cost with the Peruvian government.
□ MOLIT Director General for Airport and Air Navigation Policy Kim Yong-seok emphasized, “This is a successful case where the private and public sectors teamed up to win a project bid and to enter a foreign market together.”
ㅇ He added, “Our government will continue to spare no efforts to give support to win overseas bids in terms of finances, systems and diplomacy to help energize the Korean construction market and to contribute to economic growth.”
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