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South Korea’s push of a US$16-billion cross country canal project is drawing attention from foreign investors.
Lee Myung-Bak, the country's first president-elect from a business background, made completion of the project a key election pledge despite opposition from his political opponents and environmentalists.
The Pan-Korea Grand Waterway would link Seoul with the port city of Busan 420 km to the southeast.
Choo Boo-Kil, head of Lee's policy planning team said many foreign investors are interested in the construction of waterways and other projects to be launched by the next government.
His team has already received letters of interest from four potential investors in Saudi Arabia, Dubai, Germany and the Netherlands.
Choo said the next government could complete the canal construction during Lee's five-year term, which starts on February 25.
Choo denied the project would drain state funds, saying a private consortium involving domestic and foreign firms would manage the project.
Choo said about half of the cost estimated at about $16.2 billion will be covered by the sale of sand and rocks.
Local builders have welcomed the project. Hyundai Engineering and Construction president Lee Jong-Soo said his company would form a joint task force with four other major builders interested in the scheme.
Lee said the canal will link four major rivers and improve water quality through dredging and other clean-up measures.
The grand canal, would also reduce flooding, create an international tourist attraction and slash transport costs and improve the environment by taking container traffic off the roads.
But critics argue it is too expensive, technically infeasible and potentially disastrous to the environment.
A coalition of 180 environmental groups demanded Lee cancel the project or put it to a referendum.
The coalition said the project has never been verified properly on economic feasibility or environmental impact.
The Korea Times in an editorial urged Lee to build a consensus on the project before initiating it.
CargonewsAsia
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