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Cost apart＠｀ can South Korea build a railroad? Its reputation has taken a major knock from the disastrous history of the KTX＠｀ the country's biggest ever public works project. First mooted in 1989＠｀ to be partly ready by 1998＠｀ the deadline has been put back three times due to frequent changes of design and route. Shoddy workmanship has entailed rebuilding＠｀ costs have leapt from W10.7trn to W22.2trn ($20bn)＠｀ and plans have been scaled back. Service to Taegu is now scheduled to start in April 2004＠｀ with the final stretch to Pusan not opening until 2010.
Now the tale has a new twist＠｀ with claims that an $11m commission allegedly paid by Alstom (which won the contract) to a fugitive lobbyist went - via the Agency for National Security Planning＠｀ successor to the KCIA - to fund the 1996 election war chest of the then-ruling party＠｀ now the main opposition Grand National Party. This charge threatens to sour an already bad-tempered political mood in Seoul＠｀ where parliament has been paralysed for over two months.
Nor is the KTX the only weak link in South Korea's infrastructure plans. A recent Board of Audit and Inspection (BAI) report revealed that the new Inchon International Airport (IIA) - due to replace overcrowded Kimpo as Seoul's main gateway next March＠｀ and touted as a hub for the wider east Asian region - needs a W1.5trn infusion to manage its W4trn debt burden. Here again＠｀ the blueprint has changed three times while costs soared from W3.4bn to W7.9bn.
All in all＠｀ perhaps South Korea should focus on getting its own infrastructure projects back on track before taking on the extra burden of the north. Kim Dae-jung's iron silk road is a noble vision＠｀ whose day will come. But the moral of KTX and IIA is that the devil is in the details.
SOURCE: ViewsWire London
http://biz.yahoo.com/ifc/kr/news/100600-1.html
Now the tale has a new twist＠｀ with claims that an $11m commission allegedly paid by Alstom (which won the contract) to a fugitive lobbyist went - via the Agency for National Security Planning＠｀ successor to the KCIA - to fund the 1996 election war chest of the then-ruling party＠｀ now the main opposition Grand National Party. This charge threatens to sour an already bad-tempered political mood in Seoul＠｀ where parliament has been paralysed for over two months.
Nor is the KTX the only weak link in South Korea's infrastructure plans. A recent Board of Audit and Inspection (BAI) report revealed that the new Inchon International Airport (IIA) - due to replace overcrowded Kimpo as Seoul's main gateway next March＠｀ and touted as a hub for the wider east Asian region - needs a W1.5trn infusion to manage its W4trn debt burden. Here again＠｀ the blueprint has changed three times while costs soared from W3.4bn to W7.9bn.
All in all＠｀ perhaps South Korea should focus on getting its own infrastructure projects back on track before taking on the extra burden of the north. Kim Dae-jung's iron silk road is a noble vision＠｀ whose day will come. But the moral of KTX and IIA is that the devil is in the details.
SOURCE: ViewsWire London
http://biz.yahoo.com/ifc/kr/news/100600-1.html
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