The city of Busan has found a breakthrough for its long-delayed old-town sewer network project by introducing private investment to overcome fiscal constraints.
Busan said on Nov. 29 that its "Dongdaesin–Seodaesin Treatment Zone Sewer Network Improvement Project" received a favorable ruling in a feasibility analysis for public-private partnership projects conducted by the Public and Private Infrastructure Investment Management Center under the Korea Development Institute (KDI).
A separate sewer system handles rainwater and household wastewater through separate channels, serving as urban infrastructure effective for improving river water quality and reducing odors. The city has pursued such projects since the 1990s and has completed installation across about 75% of its total network, achieving environmental improvements at major rivers including the Nakdong, Suyeong and Oncheon.
However, the old-town districts including Dongdaesin and Seodaesin remain at low coverage rates due to their covered-stream structures and high project costs. The city explained that recent increases in construction and labor costs have made it difficult to advance the project through fiscal spending alone.
Accordingly, the city shifted the project's execution framework by adopting a Build-Transfer-Lease (BTL) approach that uses private capital. After a review by the Public Investment Management Center at the Busan Research Institute and subsequent qualification review by the KDI's Public and Private Infrastructure Investment Management Center, the project secured its feasibility.
The target area covers districts densely populated with major tourist attractions such as Nampo-dong and Jagalchi Market, as well as large medical facilities, where high foot traffic is expected to amplify the environmental benefits. The city plans to invest about 132.7 billion won ($92 million) across the entirety of Seo-gu and complete the work by 2035.
The city plans to rapidly raise the separate sewer coverage rate by running the fiscal project around the Bosucheon stream alongside this private-sector project. The aim is to simultaneously resolve odor issues and improve water quality in old-town areas while strengthening urban competitiveness.
"By running fiscal projects and private investment in parallel, we will enhance project efficiency and swiftly expand the deployment of separate sewer networks," said Lee Byung-seok, head of Busan's Environment and Water Policy Office.
