Table of Contents
- Busan's first sewage treatment facility is reborn after 36 years
- Starting construction in 2026, aiming for completion in 2034... Private investment project using the BTO-a method
- A chance to breathe new life into the areas of Anrak-dong, Jaesong-dong, and Mangmi-dong
- A new horizon for private investment projects... Government emphasizes 'tangible results'
- Conclusion: From an undesirable facility to a local landmark
- Frequently Asked Questions (FAQ)
Busan's first sewage treatment facility is reborn after 36 years
The Suyeong sewage treatment facility in Busan is set to be completely modernized. Completed in 1988, this facility is the first sewage treatment plant in Busan and is currently one of the oldest public facilities. This change is gaining attention as a significant project occurring after 36 years.
On July 8, Busan City officially announced that the 'Modernization of the Suyeong sewage treatment facility' was selected as a private investment project by the Ministry of Economy and Finance. This is a result of Busan City having progressively prepared for the project after passing a feasibility study last December through consultations with the Ministry of Economy and Finance and the Korea Development Institute (KDI).
This modernization project is expected to contribute to improving the environment in Busan and provide a better living environment for local residents.
Reference to progress so far
Starting construction in 2026, aiming for completion in 2034... Private investment project using the BTO-a method
The modernization project of the Suyeong sewage treatment facility will be undertaken with a budget of approximately 594.9 billion won. This large-scale plan involves relocating the sewage treatment facility underground and creating citizen convenience facilities such as parks and sports facilities above it. The daily processing capacity will reach 280,000 tons, and construction is expected to last for 8 years after breaking ground. Moreover, the facility will be operated for the next 30 years.
This project will be executed using the BTO-a method, where the private operator builds and operates the facility while the government guarantees certain profits and shares the gains and losses. By passing the private investment review, it is anticipated that about 90 billion won in budget savings will be possible over the next 30 years. This modernization of the facility is expected to provide a better environment for local residents.
In the second half of 2025, a preferred bidder will be selected. The construction will start in 2026, with a target completion date in May 2034. The procedure for consent from the city council and the announcement for third-party proposals are expected to proceed rapidly.
A chance to breathe new life into the areas of Anrak-dong, Jaesong-dong, and Mangmi-dong
The modernization site in Anrak-dong, Dongnae-gu, Busan encompasses the areas of Anrak-dong, Jaesong-dong, and Mangmi-dong along the Suyeong River. This facility is set to transform from a simple sewage treatment plant into a complex space that encompasses the urban environment and culture.
Above ground, large-scale sports facilities, eco-friendly walking paths, and resting areas for citizens will be established, solving existing odor and aesthetic issues. This will provide new leisure spaces for local residents, alleviating the inconveniences caused by the old sewage treatment plant, thereby improving the quality of life.
Additionally, the city’s landscape is expected to be enhanced, leading to complex urban regeneration effects such as increased real estate value. This change will positively impact the local community and enrich the lives of residents.
A new horizon for private investment projects... Government emphasizes 'tangible results'
The Ministry of Economy and Finance has named this project as "the first large-scale overhaul of a sewage treatment facility in Busan" and has evaluated it as a representative example of an environmental improvement project that local residents can tangibly experience. In particular, this project is noted as an exemplary case of a private investment initiative that simultaneously achieves regional balanced development and urban function improvement by modernizing the facility and transforming the upper space into a cultural space.
The Second Vice Minister of Economy and Finance stated, "A new government plan to revitalize private investment will be announced this year," emphasizing the intention to continue discovering new types of private investment projects based on key tasks such as responding to regional extinction issues, climate crises, and enhancing industrial competitiveness.
Conclusion: From an undesirable facility to a local landmark
The modernization project of the Suyeong sewage treatment facility is not merely about improving the sewage treatment plant. It is a comprehensive urban regeneration project that aims to improve urban environments, establish eco-friendly infrastructure, enhance the quality of life for residents, and create new urban spaces.
Busan City plans to accelerate the project's progress through this private investment initiative, aiming to start construction in 2026 and be completed by 2034.
The day will come when this space, which Busan citizens have long perceived as an 'undesirable facility,' transforms into a landmark in the city, and the scenery along the Suyeong River will undergo significant changes. This will create a new way of life for citizens and a new urban appearance.
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Frequently Asked Questions (FAQ)
Q. What changes can be expected from the modernization of the Suyeong sewage treatment facility?
After 36 years, the first sewage treatment facility in Busan will be completely modernized, moved underground, and citizen convenience facilities such as parks will be established.
The Suyeong sewage treatment facility in Busan, which was completed in 1988, will undergo a complete overhaul as part of this modernization project, upgrading it to handle 280,000 tons of sewage per day after relocating underground, while the upper space will provide sports facilities and parks, thereby addressing odor and aesthetic issues. This will significantly enhance the living environment for local residents, transforming it from a simple undesirable facility into a new urban landmark.
Q. What is the schedule and budget for the project?
Construction is set to begin in 2026 and be completed in 2034, with an estimated budget of approximately 594.9 billion won.
The Suyeong sewage treatment facility modernization project will select a preferred bidder in the second half of 2025 and commence construction in 2026. The target completion date is May 2034, with a total construction period of 8 years. The project will have a budget of 594.9 billion won, implemented through the BTO-a model, where the private sector constructs and operates while sharing profits and losses with the government. This is expected to yield about 90 billion won in budget savings.
Q. What is the BTO-a private investment method?
It is a project structure where the private sector constructs and operates, while the government guarantees a certain profit and shares profits and losses.
The BTO-a (Build-Transfer-Operate) method is a private investment project model wherein a private entity constructs and operates the sewage treatment facility while the government guarantees certain profits. This project adopts this method to leverage private sector efficiency while sharing risks and profits between the government and private investors. Passing the private investment review enables prompt project advancement while expecting approximately 90 billion won in budget savings over the 30-year operational period.
Q. What positive impact will the modernization project have on the community?
Urban environment improvement, creation of leisure spaces for residents, enhancement of aesthetics, and an increase in real estate value are expected.
This project will relocate the sewage treatment facility underground, allowing for eco-friendly walking paths, large sports facilities, and resting areas. This will resolve odors and aesthetic issues, thus improving residents' quality of life and contributing to the revitalization of the urban environment and culture of the city. Additionally, it is expected to bring positive changes to the local community through improvements in urban landscape and real estate value.
Q. Why is the Ministry of Economy and Finance focusing on this project?
Because it is recognized as a case of balanced regional development, environmental improvement, and as a model for private investment.
The Ministry of Economy and Finance views the modernization project of the Suyeong sewage treatment facility as the first large-scale overhaul project in Busan, and it is evaluated as a good example of an environmental improvement project that local residents can tangibly experience. Particularly, it is noted as an exemplary type of private investment project that achieves balanced regional development and urban functional improvement through operational efficiency of facilities and the transformation of upper spaces into cultural spaces. The government also recognizes it as a core task for revitalizing private investment and discovering new projects.
