Alstom withdraws from Inchon Railway project

Alstom of France, which allegedly offered lobbying funds in the process of winning the high-speed train project, has withdrawn from the consortium for construction of the railway between Seoul and Inchon International Airport that is scheduled to be completed in 2005.

Rep. Lee Hae-Bong of Grand National Party, a member of the National Assembly¡¯s Construction-Transportation Committee, contended based on the document submitted by the Korean National Railroad that the government¡¯s plan to attract foreign investment is facing difficulties because of Alstom's withdrawal at a time when the railway project is unlikely to be completed at the target date.

Lee claimed that KNR has a plan to build the 61.5-kilometer railway between Seoul Station and Inchon International Airport at a cost of 3.24 trillion won, of which nearly half is to be financed through foreign investment.

However, Alstom, one of the leading investors with about 20% stake in the project, has withdrawn from the consortium as its demand to conclude a contract by the price it suggested has not been accepted. In this connection, KNR officials said that there wouldn't be any problem since offshore financing providers such as Bechtel of the United States would supply 200 billion won on behalf of Alstom.