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By Jane HanStaff Reporter
More experts seem to bash President-elect Lee Myung-bak's massive canal project than cheer on his ambitious plan. They commonly agree that it's unrealistic, saying that the ground-digging work doesn't fit in with the ``economy president's'' efficiency-driven efforts.
``Quite a lot of economists and environmentalists are still questioning if the project is worthwhile to invest such a huge amount of money in,'' Professor Hong Jong-ho of the College of Economics and Finance at Hanyang University recently told The Korea Times.
The president-in-waiting said he would spend 16 trillion won ($17.1 billion) ― while some say more than double the amount is needed ― to build a network of waterways linking South Korea's major northern and southern rivers, eventually to branch up to major North Korean cities.
He consistently promoted that the 3,100-kilometer-long waterways would roll back the country's logistics costs by a third, stimulate the slow regional economies, create thousands of jobs and boost tourism.
The initiative mainly consists of three major canals ― Gyeongbu, Gyeongin and Honam ― which will ideally replace the more-costly ground transportation.
Korea is currently making cross-country transports via three main expressways. The Kyongin Highway connects Seoul and Incheon, Kyungbu Highway connects Seoul and Busan, while the Honam Highway flows through the southwestern cities.
By taking the heavy transports off the roads onto the waterways, Lee highlights that companies will enjoy a logistics cost cut, residents along the canal will see an economic boost, shipbuilders will reap business benefits, all the while carbon emissions and energy consumption are reduced.
According to the President-elect's initial campaign pledge, the Gyeongbu and Honam canals will break ground next year, but first, the plan must get a public blessing before stepping forward.
Controversy
Critics of the massive ground project have consistently questioned its economic effect, insisting that the initiative will require an astronomical amount of money with low returns. They also insisted that the plan is environmentally disastrous, as the undertaking will destroy the natural habitat around the effected regions.
Many economists and logistics industry experts also pointed out that the pan-waterway route will not be efficient in terms of time.
A recent media survey of the country's top logistics firms showed that 77 percent do not feel a need for a cross-country canal and 57 percent of these potential users said they will not take advantage of the system even if it is completed. The top drawback they pointed out was the extended transportation time.
Local research institutes have estimated that, on average, it would take about 26 to 50 hours for a 20 foot container carrier to be shipped from Busan to the metropolitan region, while road travel only takes about five to six hours.
With such looming criticism, some urge that Lee should examine the past failure to avoid the same mistake.
Minister of Construction and Transportation Lee Yong-sup said last week that the next administration should remember the Gyeongin Canal, saying, ``The 18-kilometer waterway began construction in 1995, but it has not been completed yet.''
And the United New Democratic Party (UNDP), along with other liberal parties, called on Lee to think twice whether the country really needs the transnational canal.
UNDP spokesman Choi Jae-sung said at a National Assembly briefing last Monday that contrary to Lee's claims that he won't pass any cost burden to citizens, taxpayers' money will have to be spent on covering the loss if the project proves to be unprofitable.
To this end, UNDP floor leader Kim Hyo-seuk agreed that his party and other opponents are not fighting against the project for no reason.
``It is not necessary for Lee to proceed with the massive land use plan just because it was his flagship campaign pledge,'' he said, stressing that the President-elect should drop the plan.
Scrambling for Support
To offset mounting criticism over the nationwide development plan, the President-elect and his power transition team have most recently been emphasizing that the project will be implemented with due consideration.
A waterway task force, established under the transition team, said it will actively collect various public and expert opinions before sketching out a detailed roadmap for its construction. The task force also said it has plans to hold a public hearing early next month.
``Supporters of the waterway project, along with those who are against it, will be invited to the hearing,'' said transition team spokesman Lee Dong-kwan earlier this month, adding that the incoming president has vowed to be open to any and all views of the people regarding the economic feasibility of the canal.
In his New Year's press conference, Lee addressed the controversial plan himself to shrug off concerns regarding investment.
He underlined that the project will be done via ``100 percent private investment'' and the initiative will not move ahead without a general consensus.
``When private companies bid for the project, the government and field experts will thoroughly review its environmental impact and feasibility before execution,'' he said, adding that because no state budget will be injected into the project, the government does not have a specific timeframe to kick off the plan, either.
Such comments clearly indicated a step back, but skeptics said his fresh comments were made only to temporarily cool off contention.
Still Moving Ahead
Although Lee and his team are showing signs of a slowdown, consistent efforts are being made to lay the surface for the construction in the future.
Since meeting with heads of the local construction companies last month, the head of the waterway task force, Jang Seok-hyo, has plans to meet with a group of Dutch canal experts next month to discuss cooperation.
And the President-elect's top policy adviser, Lee Jae-oh, said recently that the Grand National Party is proceeding to legislate a special law on the project, so that it can break ground in February 2009 at the earliest.
Supporters of Lee and his canal plan also have persistently reminded the public of his success with the mini-waterway in downtown Seoul.
``There was heated debate over Lee's plans for restoring the Cheonggyecheon Stream when he was elected Seoul mayor in 2002, but he eventually carried out the project to the end with strong initiative and leadership,'' said a transition team official.
The team also proved the project's edge, as it announced that potential foreign investors from Saudi Arabia, Dubai, Germany and the Netherlands have already shown signs of interest, while some even sent letters of interest on investment in the project.
Domestically, the country's five top builders ― Daewoo Engineering & Construction, Samsung Engineering & Construction, Hyundai Engineering & Construction, GS Engeering & Construction and Daelim Industrial ― recently formed a joint consultative body to assess whether the grand canal project is feasible.
Hyundai E&C President Lee Jong-soo described the canal as ``the environmental revitalization of the 21st century'' and that it would reduce flooding, create an international tourist attraction, while stripping transport costs.
Analysts say other builders are optimistic about the project as well, though they still carry some level of wariness of the feasibility.
The GNP said the incoming government plans to implement the undertaking under a build-operate-transfer (BOT) system, in which the government hires private builders to construct the watery and other facilities.
The firms will then operate the facilities to recoup their investment for a designated period before ownership is transferred to the government. However, what makes the companies worry is that the local law does not hold the government responsible for guaranteeing profits.
Remaining Homework
As Lee and his transition team already admitted, the widespread public and expert opinion is that the pan-watery initiative should only move forth with more solid proof of benefits.
The transition team says that the public hearing next month and an on-site survey of the proposed canal area in March will help answer many of the questions and turn doubts into confidence.
jhan@koreatimes.co.kr
