GS E&C selected as preferred bidder for Busan's Sasang-Haeundae Expressway project

GS Engineering and Construction (GS E&C) has been selected as the preferred bidder for the Sasang-Haeundae Expressway, a private investment project that aims to construct a 22.8-kilometer highway connecting the Namhae Expressway Branch 2 in western Busan to the Donghae Expressway in the east. The new expressway aims to ease congestion in downtown areas by providing an alternative route to the city center and expanding the road network in the Busan-Gyeongnam Area. The project will use the "Build Transfer Operate-adjusted" (BTO-a) funding model, which compensates the government for minimum costs required to build and run the expressway to reduce business risks. To ensure safety and convenience, most of the road will be constructed as large-depth underpasses.

GS E&C submitted the project proposal and was the sole bidder on October 19, 2022, yet was still selected for the project. The project passed the Value for Money (VfM) assessment on October 25, 2020, and was identified as a priority for the assessment in January 2019 under the National Balanced Development Project. The Ministry of Land, Infrastructure, and Transport made decisions regarding the Sasang-Haeundae Expressway private investment project, including the Strategic Environmental Assessment (SEA), on January 22, 2021.

MOLIT will negotiate with GS E&C in the coming months to finalize the project's details. The expressway will follow a route similar to Busan Metro Line 2, with the exception of not passing through Suyeong-gu and Nam-gu. However, the project has sparked a debate on whether the Dongseo Overload Bridge, which connects to East Busan through the Hwangnyeong Tunnel, should be demolished. The SEA suggests that demolition is currently the preferred option, but congestion is expected to increase once the North Port redevelopment is completed due to traffic going to the North Port and Uam Port, which still operates as a port. Therefore, the debate surrounding the Dongseo Overload Bridge is ongoing, and its demolition is considered to be a potential solution to mitigate congestion issues.

The Sasang-Haeundae Expressway is an important project that is expected to improve traffic flow in downtown areas in Busan and contribute to the balanced development of the western Busan. Although there is an ongoing debate regarding the Dongseo Overload Bridge, the construction of the expressway will begin in 2025, using the BTO-a funding model. Negotiations between MOLIT and GS E&C will take place soon to finalize the project's details.