Posted June. 22, 2005 06:00,
The Ministry of Construction and Transportation (MOCT) requested the ruling Uri Party on June 21 that its related-budget should increase more than two times than that of this year on the grounds that the compensation costs for lands in civil highway construction projects cost more than earlier estimated costs due to the recently skyrocketing land prices.
In addition, the MOCT suggested a measure to pour one trillion won for the next five years into Korail, which is experiencing financial difficulty, and requested two billion won in the name of service and public relations costs for the relocation project of public institutions to local areas.
In a consultative meeting between the party and the government on the same day, the MOCT proposed that 640 billion won earmarked for compensation costs for lands this year should be raised by 101 percent to 1.29 trillion won next year. The Ministry of Planning and Budget has already decided to raise the related-budget up to about 1.2 trillion won.
The MOCT explained that the compensation costs for the highway project from Seosuwon to Pyeongtaek increased to 480 billion won, more than seven times higher than earlier expected costs of 65.2 billion won, and as for the compensation costs for the highway project from Seoul to Chuncheon, they amounted to 475 billion won, more than two times higher than earlier estimated costs of 224.1 billion won.
As for Korail, the MOCT said, Taking into account the accumulated deficit caused by the fact that it is having a difficulty due to some problems, including liabilities interest resulting from high speed railroad operation, its liabilities will amount to 12 trillion won in five years, adding, Korail needs financial support of 200 billion won per annum for the next five years.
Regarding the controversial issue of the newly-set up local airports, their extension and rebuilding, the MOCT revealed its plan, saying that it would readjust an investment plan in the future, presenting statistical figures that showed after the high speed railroad was opened, flight demand between Gimpo Airport and Daegu Airport, and Gimpo Airport and Mokpo Airport reduced by about 60 percent, respectively.