PROJECT

“ECO-EFFICIENT AND SUSTAINABLE

URBAN INFRASTRUCTURE DEVELOPMENT
IN ASIA AND LATIN AMERICA”

CASE STUDY
Taehwa river restoration project in Ulsan, Republic
of Korea
Prepared by Dr. Chang-Ki Kwon, Senior Research Fellow,
Department of Research, Planning and Coordination, Ulsan
Development Institute

The designations employed and the presentation of the material in this

publication do not imply the expression of any opinion whatsoever on the part
of the Secretariat of the United Nations concerning the legal status of any
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editing.
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Introduction

The economic and environmental consequences of inadequate river management during rapid
urbanization has often affected adversely the quality of water and contributed to the degradation of
aquatic ecosystem. In part, this has resulted because misleading policy priority and short-eyed
approach on local river management have often overlooked the cumulative environmental
degradation that would cause huge socioeconomic costs later. Specifically, such episodes in many
Asian cities have resulted not only in water quality but also in ecological management of local rivers.
From eco-efficiency of local river management, it should be essential for local government to
implement various cost-effective policy measures such as appropriate policy framework of water
quality improvement; comprehensive environmental restoration and protection plan; relevant public
investment priorities; and effective financial modalities on river management.

In this regard, the experience of Ulsan on Taehwa River restoration project can seen as a flagship
river management in which several policy practices would be worthy to be emulated for other Asian
cities facing serious environmental degradation of local rivers. This case study is intended for
providing policy implications of local river management relevant for other Asian cities. To do this
objective, this study articulates the key elements of Ulsan’s approach on local river management and
explores various eco-efficiency aspects in Taehwa River project along with providing significant
implications.

Figure 1 Floods of Taehwa River in the 1960s

Ulsan has experienced negative environmental externalities due to industrialization and urbanization
since the early 1970s. In particular, rapid population influx had imposed great environmental burden
on Taehwa River, the mainstream of urban river running through Ulsan, in which there were little
environmental pollution with the exception of floods and natural disasters prior to the 1970s (see
 3

Figure1). Yet, the environmental consequence of urbanization and industrialization in Ulsan had
brought about a wide variety of environmental problems at Taehwa River such as poor quality of
water and the depletion of natural habitats since the 1970s. There were a variety of several causes in
terms of urban infrastructure and policy measures. It is often mentioned that the deficiency of urban
environmental infrastructures, the lack of institutional arrangement of environmental governance,
reckless urban development have been responsible for environmental degradation during the early
industrialization period.

Specifically, the main driving force behind the deteriorated environment of Taehwa River is directly
attributed to rapid urbanization and its negative externality such as deficiency of urban infrastructure
properly responding the rising demand on sewage treatment. In fact, total population of Ulsan is
explosively increased from 85, 000 in 1962 to 1,099,995 in 2007. Yet, the supply of the necessary
urban infrastructure had been inappropriate due to the limit of financial and institutional resources
from public sectors. The severe water pollution of Taehwa River during the period of 1970s and
1980s is a typical example of the bottleneck of such insufficient urban environment infrastructure in
Ulsan.

Figure 2 Satellite image of Ulsan

National Industrial Park Areas

Compared to air pollution discharged from local industrial complex (petrochemical, non-ferrous
metals) emissions as a stationary pollutant source, water quality deterioration at Taehwa River is
 4

regarded as the consequence of the lack of environmental infrastructure such as sewage treatment
facilities, which is largely caused by the sudden increase in demand due to rapid urbanization. As a
result, it is required to improve water quality at Taehwa River through a variety of approach and long-
term policy responses, while there is remarkable improvement in air quality management in the region
due to the more practical practices and tougher emission regulations over a relatively short period
(Kwon et al, 2008).

Table 1 Change of major environment-related indicators in Ulsan (1998 – 2007)

Target (Plan)
Unit Remarks
1998 2002 2007 2008 2010

SO2 ppm/yr 0.015 0.010 0.008 0.006 0.005

TMP ㎍/㎥․yr - 54 53 47 45

NO2 ppm/yr 0.019 0.019 0.023 0.021 0.020

BOD at ㎎/ℓ 1.8 1.6 0.8 0.8 0.4 upstream

Taehwa River ㎎/ℓ 7.8 4.5 1.7 1.7 1.5 downstream

Sewage % 59 65 91.6 92.0 95.0

Urban Park ㎡/person 10.27 12.49 14.63 15.16 15.60

Per capita
Waste ㎏/day 1.03 1.29 0.99 0.95 0.92
Generation
Source : Ulsan Development Institute, 2008

In order to tackle down negative external effects, Ulsan metropolitan government has initiated a
variety of long-term comprehensive policy measures in which the improvement of water quality,
ecological restoration, development of riverfront, and cultural and historical renovation have been
established as the main components of Taehwa River restoration project. In particular, ‘Eco-Polis
Ulsan Plan’ and ‘Taehwa Master Plan’ play great role in effective implementation of the river’s
restoration project (Ulsan metropolitan city, 2007)

Eco-Efficiency Assessment of Taehwa River Restoration Project

The eco-efficiency assessment on Taehwa River restoration project mainly consists of improving
ecological value and creating socioeconomic value. Given this regard, this study defines the main
components of eco-efficiency assessment into several parts in accordance to the target area of the
project. Specifically, the improvement of ecological value of the project includes water quality (BOD)
and biological diversity, while socioeconomic vales are related to use of riverfront and ecological park,
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rise of property value, and institutional arrangement of stakeholders on Taehwa River restoration
project. The following table shows the key components eco-efficiency assessment on Taehwa River
restoration Project.

Table 2 Key components of eco-efficiency assessment on Taehwa River Restoration Project

Sector Target Area Nature of Selected Indicator

Eco-efficiency
Environmental Water quality Environmental Biological Oxygen Demand (BOD)
Environmental Water quality Economic value (benefit) Economic benefit effect
Environmental Water quality Environmental/Economic Degree of satisfaction on water
quality
Environmental Water quality Economic value (cost) cost/ improvement of BOD level
Ecological Ecological restoration Environmental load Number of Species & natural
habitats (Salmon)
Economical Urban Regeneration Economic value Property value
Technical Technical Management Environmental/Economic Local River Management System
Social Amenity & Accessibility Environmental/Economic Degree of satisfaction on Taehwa
River ecological park
Social Social & institutional Environmental/Economic Institutional Arrangement
governance
Social Social & institutional Environmental/Economic Degree of public involvement
governance (NGO activity)
Social Local response Environmental/Economic Level of environment improvement of
local river
Financing Financing Economic Financial modality (subsidy, PPP)

To measure environmental and economic value (load) of the project in both quantitative and
qualitative terms, the assessment uses a number of empirical evidences and official statistics on
Taehwa River. 1 Concerning quantitative effects of econ-efficiency on Taehwa River Restoration
Project, this assessment study applies Contingent Valuation Method (CVM) to quantify economic
benefits of water quality improvement and the establishment of Taehwa River Ecological Park. This
study also analyzes indirect economic valuation of property value near downstream generated by the
river restoration project with regard to urban regeneration. In addition, the assessment work conducts
survey on the satisfaction of ecological park in both citizen group and expert group. Regarding
technical and social aspects of this river project, it introduces the technical management of local rivers

1 Concerning quantitative effects of econ-efficiency on Taehwa River Restoration Project, this

assessment study applies Contingent Valuation Method (CVM) to quantify economic benefits of water
quality improvement and the establishment of Taehwa River Ecological Park.
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and NGO activities relating to Taehwa River Restoration Project. This case study concludes the
lessons learnt from Ulsan’s case along with a few policy implications for other Asian cities.

Water Quality

The most remarkable achievement of Taehwa River project is rapid improvement of water quality at
downstream. The BOD (Biochemical Oxygen Demand) of upstream of Taehwa River improved from
1.23 ㎎ / ℓ in 1995 to 0.79 ㎎ / ℓ in 2007, which is keeping water quality and aquatic ecosystems rank
as the status of the 'Very Good' rating by national standard. The downstream of the river experienced
more drastic change compared to upstream’s case. The BOD (Biochemical Oxygen Demand) level
at downstream reached to 9.8 ㎎ / ℓ in 1995 and 11.3 ㎎ / ℓ, in 1996, respectively. Since the 2000s,
the water quality of downstream has been remarkably improved. Since then, the BOD level of
downstream at Taehwa River had dropped from 5.40 ㎎ / ℓ in 2001, 3.24 ㎎ / ℓ in 2004, and was
maintained 1.66 ㎎ / ℓ in 2007 as a state of water quality and aquatic ecosystems as good rating.

Figure 3 Change of Taehwa Rive’s BOD

Source: Ulsan Metropolitan City, 2008

To calculate economic benefit on water quality improvement on Taehwa River restoration project , an
empirical study on economic value of water quality improvement suggests that a household in Ulsan
is willingness to pay for water quality improvement by 2, 747.5 Won /month that is quite higher than
 7

other public projects (Kim and Kwon, 2008).2

Responding water pollution at urban river, Ulsan metropolitan city takes several policy measures of
water quality such as sludge dredging project, building pollutant treatment facilities, and expansion of
sewage treatment facilities. An empirical study on the causal relationship between input budget of
specific water quality improvement project and the degree of BOD improvement during survey period
suggests that sewage network project at household level is the most prominent cost-effective way to
improve water quality in term of BOD, while the effect of Sludge dredging project at Taehwa River is
also very effective among several policy measures of Taehwa River restoration project (Kim and
Kwon, 2008).

Table 3 The Degree of cost-effectiveness between Input budget and BOD improvement

Project (period) Input budget (cost) Degree of Improvement/BOD

Sludge dredging project 16.0 billion Won - 1.12 ppm
(2004.4 – 2007.2) (reduction)
Sewage network project 26.6 billion Won - 1.68 ppm
(1998.1 – 2007.9) (reduction)
Source: Kim, 2008

In addition, the other major water quality improvement project, wastewater monitoring, wetland and
urban creek restorations, and riverbank filtration are partly responsible for the improvement of water
quality at Taehwa River. By 2007, the Water Quality Improvement Plan under Eco-polis program
consists of a total of 16 projects, in which 5 projects have completed and 11 projects are in progress
(See details in Table 4).

Table 4 Major water quilty mprovement project at Taehwa River

Water Quality Improvement Project Charging Division

Sludge dredging project at urban downstream Construction & Road Division
Building non-point pollutant treatment facilities Environmental Policy Division
Building livestock wastewater treatment at upstream of
Environmental Policy Division
Daegok Dam
Development of Riverbank Filtration Source Environmental Policy Division
Expansion of Sewage treatment facilities Sewage Management Division
Restoration of wetland at Taehwa River Environmental Policy Division
Ecological restoration of urban creek Environmental Policy Division

2
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Establishment of Water quality monitoring system Environmental Management Division ″

Expansion of Tele-Monitoring System (TMS) at polluters
Prevention of inflows of wastewater at Taehwa River
Local water comprehensive Plan
Naturally cleaning project at Taehwa River
Source: Ulsan Metropolitan City, 2008
Environmental Management Division
Sewage Management Division
Environmental Policy Division
Environmental Management Division ″

An in-depth survey on the degree of water quality improvement confirms that the majority of local
residents in Ulsan are satisfied with the improvement of water quality of Taehwa River (Ulsna
Metropolitan City, 2009). The degree of citizen’s satisfaction on water quality of Taehwa River is
increased to 3.70 from 2.21 in 2004. The expert group also confirms that the water quality of the river
is much improved than the previous period (See Table 5).

Table 5 The Degree of satisfaction on water quality of Taehwa River3

April 2004. June 2009

Citizen group 2.21 3.70
Expert group 2.43 3.76
Source: Ulsan Metropolitan City, 2009

Ecological Restoration

Along with the improvement of water quality, ecological habitat was being restoring through whole
range of river stream and watershed at Taehwa River. A field survey on living species at Taehwa
Rive shows that all 37 kinds of fish populations and 73 kinds of aquatic plants inhabited in the river.
(Jeon, 2005) Meanwhile, according to another comprehensive on-site survey on the ecology of
Taehwa River by Ulsan Metropolitan shows that total of 430 species, including plants, animals, birds
and fishes, inhabited in 2008,. (Ulsan Metropolitan City, 2008). Furthermore, the population of
migratory birds is rapidly increasing during recent years because of the improvement of water quality
and the ecological restoration at Taehwa River.

The number of the observed salmon at Taehwa River has increased since the early 2000s, which had
once been disappeared due to water pollution of the river. By 2009, the number of salmon returning to
Taehwa River is increased to 614. The contributing factors of the return of salmon at the river are
largely associated to the improved water quality and the restoration of ecological habits at the river. 4

3 The degree of satisfaction is scaled from 1 (least satisfied) to 5 (most satisfied).

4 In addition, the city government has exercised a restoration program, “Stocking young salmon at
 9

Figure 4 The species lived at Taehwa River

Table 6 Number of the observed salmon (2003-2009)

Year 2003 2004 2005 2006 2007 2008 2009

No. of Salmon 5 15 67 80 85 55 614
Source: Ulsan Metropolitan City, 2008

Furthermore, the city government has continuously attempted various cost-effective measures to
enhance biodiversity as well as to conserve water resources at Taehwa River. In sum, it can be said
that all these efforts is responsible for the progress of ecological recovery of the river.

Urban Regeneration

The restoration project on a local river is not only contributing to reduce environmental load, but also
to generate economic value through urban renovation. Indeed, the consequence of river restoration
project has positively influenced on property value of built-up areas near at Taehwa River. In order
to measure economic gain, this study examines how the built-up areas at Taehwa River downstream
is change in term of property value during the 1st phase period of river restoration period (2005-2009

The analysis on the change of land price in riparian areas of Taehwa River (radius 500m, 1000m,

Taehwa River, “since the early 2000s.

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1500m) during 2005 - 2009 shows that the land price at built-up areas at the river is increased by 30-
40% higher compared to other areas at urban center. In particular, the riverbank neighborhood
(within a radius 500m) and its surrounding areas (radius of 1000m - 1500m) experience d economic
benefits due to rapid increase of land price.
Figure 5 The built-up areas at Taehwa River (by radius 500/1000/1500m)

Source: Kwon, 2009

Table 7 Change of land price at Taehwa River’s downstream5

Land price Land price

Increase rate (%)
in 2005 (㎡) in 2009 (㎡)

Zone 1
531,151 Won 700,233 Won 31.8%
(0 – 500m)

Zone 2
485,068 Won 698,780 Won 44.1%
(501 – 1000m)

Zone 3
550,430 Won 803,751 Won 46.0%
(1001 – 1500m)

Total 522,216 Won 734,254 Won 40.6%

Source: Kwon, 2009

5 The value of land at Taehwa River downstream is closely related by both the existing land-use
pattern and access to riverbank. The majority of commercial land use is concentrated in the lands of
radius 1000 – 1500m away from Taehwa River’s banks.
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Another estimate of land price shows that the built-up area (riverfront zone) near at Taehwa River has
experienced more economic gain than the remaining built-up areas (non-riverfront zone) in term of the
increase of land price. The increase rate of land price of riverfront zone during the survey period
(2005 – 2009) is four times higher than none-riverfront zone’s one. .

It provides a significant policy implication on local river management that economic gains such the
rise of land price at riverfront area enable local residents to participate actively into the concerned
river project with reducing or avoiding conflict costs incurred often from riverfront development
process.

Table 8 Comparison of land price at riverfront/non-riverfront zone (2005, 2009)

Land price in 2005 (㎡) Land price in 2009 (㎡) Increase rate (%)

Riverfront Zone
522,211 Won 734,254 Won 40.6%
(0 – 15000m)

Non-riverfront Zone
233,711 Won 257,378 Won 10.1%
(Outer 1500 m)
Source: Kwon, 2009

Technical Management

The most prominent characteristic of Taehwa River restoration project is that the city government
takes precautionary approach on river management along with technical expertise. This
precautionary approach is a cost-effective rather an end of pipe approach in which the majority of
policy measures is largely concerned with treatment of wastewater at downstream of local rivers. In
fact, the metropolitan city establishes local sewage treatment plans covering whole range of
metropolitan administrative district in order to prevent inflow of wastewater into Taehwa River from
household and industrial sector (see Table 8, 9 and Figure 6).

Table 9 Details of major sewage plans at Taehwa River

Name of Plan Spatial coverage Establishment year

Old town 10.25㎢

Local sewage master plan 1981
new built-up area 28.2㎢

Hoeya River’s upstream sewage plan Ungchon in Ulju-gun 1987

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and others (Yangsan city)

Local sewage maintenance plan Jung-gu/Nam-gu/Dong-gu 1987

Nongso sewage plan Nongso area in Bug-gu 1993

Ulsan Metropolitan sewage Metropolitan areas

1998
maintenance plan A=152.43㎢

Source: Ulsan Metropolitan City, 2008

Table 10 Details of sewage treatment district in Ulsan metropolitan region

Sewage treatment district Spatial coverage Size (㎢)

◦ Jung-gu/ Nam-gu
Ulsan 60.38
◦ Chungyang,, Beomseo in Ulju-gun

◦ Yungchon in Ulju-gun
Heoya 13.10
◦ Yangsan city

Onsan ◦ Onsan, Onyang, Seosang in Ulju-gun 22.10

Bangeojin ◦ Dong-gu/ Buk-gu 15.44

◦ Eunyang, Dudong, Duseo, Samnam,

Eunyang 14.32
Samdong in Ulju-gun
Source: Ulsan Metropolitan City, 2009

Given the comprehensive sewage scheme, local municipalities at both metropolitan and local district
have employed multi-year action plans on sludge dredging project at urban downstream, building non-
point pollutant treatment facilities, and expansion of sewage treatment facilities. In addition, Tele-
Monitoring System (TMS), a technical modalities of Taehwa River Restoration Project, include is
regarded an effective means in monitoring wastewater from both household and industrial sector. To
do this, the city government recommends mandatory establishment t of TMS for local industrial
establishment that discharges wastewater over 200㎥/day. Furthermore, the government operates
location-specific management of water pollution by the designation of water quality management
district (WQMD) at metropolitan level.
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Figure 6 Location of major sewage treatment facilities in Ulsan metropolitan region

Local sewage treatment facility

Source: Ulsan Metropolitan City, 2009

Amenity & Accessibility

The experience of Taehwa Riverfront development can be regarded relevant empirical evidence in
which several policy measures on effective use of eco-friendly riverfront offers more satisfactions to
citizens in terms of accessibility and amenity. The metropolitan government put higher investment
priorities on establishing ecological park and building recreational facilities in order to improve the
amenity and accessibility of Taehwa River. The details are as shown at Table 11.

Figure 7 Landscape of ecological park at Taehwa River

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Source: www. Ulsan.go.kr

Table 11 Details of riverfront development at Taehwa River (Unit: sq.m )

Size of Landscaped Area

Recreational
Total Sub Flower Grass Sacred Ecological Parking Lot Walking path
Facilities
total garden field grove park

1,052,465 868,364 577,020 136,683 9,052 145,609 119,940 64,161 17.7

Source: Ulsan metropolitan city, 2007

Figure 8 The scenes of various activities at Taehwa River

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As a result, the degree of satisfaction on Taehwa River’s environmental condition by citizen has much
improved than the previous years. The survey on Taehwa River’s environmental condition (2006)
shows that more than half of total visitors reveal overall evaluation as “satisfactory" or “very
satisfactory,” while only 10.0% of those visitors are not satisfied with the quality of the river such as
amenity and facilities. Local expert group scale of 3.40 on the degree of satisfaction on Taehwa river’s
environmental condition, which is slightly lower than citizen group.

Figure 9 The degree of satisfaction to Taehwa River (Citizen/ Expert)

50 44.4 46.0
42.0
39.9
40 citizen expert

30

20
10.0
10 7.6 6.3
2.0 1.7 0.0
0
% very satisfied satisfied average dissatisfied very dissatisfied

Source: Ulsan Development Institute, 2008

Figure 10 Comparison of satisfaction to Taehwa River between citizen and expert

expert 3.40

citizen 3.50

Very satisfied
0 1 2 3 4 5

Source: Ulsan Development Institute, 2008

Another survey (2009) confirms that more than half of Ulsan’s citizen (52.2 %) is satisfied with
Taehwa River’s environmental condition in 2009, whereas only 9.3 percent of the citizens were
satisfied with local river (Ulsan Metropolitan City, 2009)

Institutional Arrangement
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Recognizing that local river management has been frequently fragmented in the past, Ulsan
metropolitan government stresses a comprehensive framework for formulating plans on river
management as well as implementing specific management practices. In given background, the
metropolitan government takes a leading role on formulating territorial planning on Taehwa River
project, organizing a special taskforce unit for river management (Taehwa River Taskforce Team),
and integrating environmental concern of local NGOs into Taehwa River Restoration Project.

Concerning the formulation of plan on local river management, the government takes an integrated
and comprehensive approach on sustainable urban river management that deals various policy
agendas including water quality, ecological recovery, urban regeneration, and cultural and historical
restoration relating Taehwa River. In given regard, Taehwa River restoration project is being
implemented under two-tier planning system, Eco-polis Plan and Taehwa River Master Plan. Eco-
polis Plan provides vision and objective of Taehwa River restoration project as a non legal-binding
strategic plan, while Taehwa River Master Plan proposes specific and sectoral projects as an
implementation plan. The followings are the details of Taehwa River Master Plan

Figure 11 Summary of the 1st phase Taehwa river master Plan (2005 – 2014)
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Furthermore, another policy measure of Taehwa River restoration project attracts special attention on
effective management of urban river’s landscape from local experts as well as citizens. In order to
establish such effective management of Taehwa River’s landscape, the city government set up ‘The
comprehensive mid-long term landscape plans on Taehwa River’ in 2006.

Regarding inefficient river management at local level, Ulsan has a multiplicity of metropolitan
agencies and commissions with overlapping responsibilities for managing local rivers. Because a
number of divisions in the metropolitan government typically focus on only one type of river
management, the concerned decision-making tends to be fragmented. In addition, different divisions
and agencies at metropolitan government often have conflicting plans to manage local rivers.

To address such problems of local river management, the city government establishes an effective
institutional arrangement (setting up “Taehwa River Taskforce Team”) that is intended for
encouraging river-related divisions and agencies to coordinate for the management of river basins at
Taehwa River. As a result, this institutional arrangement is regarded an effective means not only in
exercising efficient implementation of river management but also in avoiding inefficient operations of
the concerned related project. In mid-long term, it hence contributes to implement all related policy
agendas on Taehwa River restoration project in consistent manner.

Public Involvement of Local Stakeholders

The activity of local NGOs in Taehwa River restoration project attracts special attention with regard to
the role of local stakeholder in public involvement. Contrary to conventional public involvement in
environmental affairs at local level, local NGOs as major stakeholder are very effective in both raising
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public awareness on the importance of local river restoration and examining the relevance of policy
measures on Taehwa River project.

Figure 12 Clean-up activities at Taehwa River

Prior to being raised to the status of a metropolitan city in 1997, the majority of policy measures
relating to Taehwa River was indeed exclusively driven by the government at both local and central
level. Yet, such a conventional approach had encountered several limitations such as the lack of
public awareness and involvement and the absence of practical policy measures on local rivers.
Responding these institutional problems, the metropolitan government takes new approach on the
role of local environmental NGOs in local river management. The government establishes the
coordination committees on river management in which local NGOs are asked to participate in
reviewing the existing policy performances and recommending alternatives on local rivers. The
involvements of local NGOs and other stakeholders in local river management help to avoid conflicts,
minimize confrontation, generate creative alternatives, and promote sustainable river management.

Indeed, due to several episodes of industrial pollution in Ulsan, several environment NGOs have been
very active in local environment affairs. Yet, the primary concern of local NGOs in Ulsan remained
on industrial pollution, while the concern on environmental issues related to local rivers were weak.
However, as the water pollution of local rivers became serious in the late 1980, the number of local
NGOs with special concern on Taehwa River is steadily increased (Koo, Han, and Jeong, 2008).

Of several local NGOs, Taehwa River Conservation Council (hereafter, TRCC) is the foremost runner
in both the researches on ecological conservation and the dissemination of environmental education
about Taehwa River. This NGO, established in 1989, takes territorial & practical approach on the
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conservation of Taehwa River, whereas other NGOs focus on specific issues on local rivers on
sectoral and general approach.

Table 12 Activities of local NGOs affiliating to Taehwa River Restoration Project

Local NGOs reacting to Taehwa River Major activities

Conducting field survey on Taehwa River

Ulsan Environment Alliance
Organizing Eco-education for youth & citizen

Establishing Eco-class for Taehwa River

Conducting field survey on Taehwa River
Taehwa River Conservation Council
Organizing workshop & seminar on Taehwa River
Campaign for National Trust on Taehwa River

Citizen Group of Saving Yeochun-river Assisting ecological restoration at Yeochun River

Dongcheon-river Conservation Council Assisting ecological restoration at Dongchun River

Volunteers for Bamboo Forest Conservation of Bamboo Forest at Taehwa River

Citizen Group for Taehwa River Cleaning & conservation at Taehwa River

Table 13 List of major activities implemented by local TRCC, 1994 – 2008

year Major Workshops & Seminars

The symposium on the conservation of Bamboo Forest at Taehwa River (1994.11.8)

The research on environment management on Taehwa River (1997.10.21)

1994 The workshop on sustainable development & conservation of Taehwa River
-
The seminar on “how to build ecological park of Taehwa River?” (1999.9.7)
1999
The conference on the environmental policy of Taehwa River restoration project
(1999.11.3)
The seminar on the role of local NGOs in Ecological consravation (1999.11.21)

The Symposium of National Trust in Ulsan (2004.3.5)

2000
The workshop of the prospects and policy measures on Taehwa River’s Ecological
-
Management (2007.3.22)
2008
The workshop on the Culture and History of Taehwa River (2008.6.11)
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In this regard, Ulsan Environment Alliance (UEA) attracts local policymakers’ attentions in the
following terms. First, this NGO organization makes intensive efforts on training local youth groups
through a series of eco-education programs on local rivers. Second, the environmental programs
organized by UEA put higher priority on providing various on-site activities relating to river
conservation focusing on local residents. Finally, UEA attempts to facilitate group-based programs
on local environment by developing the contents and methodology relevant for environment education.

In addition to these activities, UEA has exercised the on-site survey on local rivers in regular basis
since 2003. The survey includes examining the status and condition of local rivers as well as
monitoring water quality and other natural resources in order to provide future direction on
environmentally-sound urban river management in Ulsan (Koo, Han, and Jeong, 2008).

It can be said that two local environment NGOs described previously contribute not only to raise
public awareness on the importance of urban river, but also to offer innovative policy options on local
river restoration project. Although these two NGOs are regarded as the major stakeholder in the
project, there are yet clear division of role between TRCC and UEA in terms of priority and contents.
TRCC puts higher priority on providing local-specific alternatives on the issues equipped with
expertise and consultation, whereas UEA attempts to raise critical policy issues on local river
management along with public campaign.

It is also worthy to note that the role of local business and industrial sector is increasingly significant
over recent years. Contrary to other Korean cities where the most prominent stakeholder is only
general public, local business and industrial establishment in Ulsan get heavily involved in Taehwa
River restoration project. By 2008, 73 local business and industrial companies has participated local
river clean-up project in the name of public campaign “One Company, One Kilometer,” in which each
company is responsible for one kilometer of local river stream’s clean-up. Such diversification of
stakeholders on local environment contributes to raise social responsibility of local corporate as well
as to mobilize local resource for environmental improvement project.

Financing

Ulsan metropolitan government has put higher investment priorities of urban environment on water
conservation, natural environment management, and water supply that other sectors since the mid
2000s.6 The predominant shares of water sector are prominent; water conservation (43.7%); water

6 The investment share of air quality management is relatively very low because local government
takes the principal policy measures to enforce strict regulation on stationary source of air pollution as
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supply (14.3%), while the investments on other significant sectors such as soil, hazardous & toxic
chemicals, and noise % vibration, are almost negligible (see Table 14). It implies that Taehwa River
restoration project has been situated in favorable financing condition.

Table 14 Local Environmental Investment by Sectors (2004 – 2008)

Sector Subtotal 2004 2005 2006 2007 2008

(2004 – 2008) (%)
Environmental management 24,360 (2.4%) 10 1,350 2,300 19,200 1,500
Natural environment management 345,839 (33.5%) 76,559 75,414 67,373 66,057 60,436
Air quality management 17,536 (1.7%) 2,661 4,400 4,712 2,985 2,778
Water conservation 451,451 (43.7%) 29,763 53,100 163,75 92,849 111,980
9
Water supply 148,289 (14.3%) 30,289 28,871 38,550 29,669 20,910
Waste treatment 21,535 (2.0%) 3,175 4,460 1,750 1,650 10,500
Hazardous & Toxic management 470(0.04%) - 20 270 150 30
Soil contamination management 170 (0.01%) - 80 90 - -
Marine environment management 21,887 (2.1%) 4,275 7,330 4,982 5,000 300
Noise & Vibration 1,310 (0.12%) - 560 350 190 210
Total 1,032,847 146,732 175,58 284,13 217,75 208,644
(100.0%) 5 6 0
Source: Ulsan Metropolitan City, 2008

The financing of Taehwa River restoration project is differentiated with the institutional arrangements
such as the nature of governing institution and the division of role. The financial sources of major
projects for Taehwa River restoration project are predominantly channeled through both central and
metropolitan government. It is associated with the division of role on the river’s projects. In fact,
central and metropolitan government takes exclusively responsibilities on downstream of Taehwa
River, whereas local districts charges for local river streams connecting to the river. As a
consequence, the share of total budget intended for Taehwa River restoration project from both
central and metropolitan government reaches to 95 percent, while local districts account for less 5
percent of total budget.

The financial modality of Taehwa River restoration project was heavily dependent on subsidy as the
major financing source at the early stage. Yet, as the demands on social welfare and other urban
sectors are increasingly enhanced, the local government attempts recently to seek new financing
alternative based PPP (Public-Private Partnership). For example, a number of newly-built sewage
facilities in Ulsan are mainly completed by private sector’s involvement under BTO (Build-Transfer-

well as to exercise strong cost recovery scheme to local industrial sectors.

 22

Operation) contract framework.7

Table 15 Financing of major projects on Taehwa River restoration project

Total budget (million Won)

Project Total
Government City District
(%)
331,426 134,261 182,362 14,803
Total
(100%) (40.5%) (55.0%) (4.5%)

Source: Ulsan Metropolitan City, 2009

Such participation of private sector into financing of urban environmental infrastructure is regarded an
effective policy option for cash-strapped local municipalities that are responsible for the service
delivery of various urban services such as welfare and health, and education. With insufficient public
revenue to meet the rising demand for urban environmental infrastructure and management, Ulsan
metropolitan government has, in fact, increasingly relied on the resource of local communities and
NGOs as well as the profit-making drive of the private sector since the 2000s.

Another characteristic of financing on Taehwa River projects is the application of cost recovery under
pollution charges based on the principle of the polluters pay. The metropolitan government levies to
local business establishment user cost, which is incurred from wastewater treatment.

Concluding Remarks

Taehwa River, which was once called 'river of death’ due to severe water pollution at downstream,
has been greatly improved in terms of water quality and other environmental indicators since the early
1990s and is known a role model of urban river restoration project in Korea. Such consequence can
be summarized through the assessment on eco-efficiency of Taehwa River restoration project as
follows;.

Table 16 Details of Eco-efficiency Assessment of Taehwa River restoration Project

7 Ulsan metropolitan government has planned 4 sewage treatment facilities during the fiscal year
period of 2009 – 2011. Two sewage treatment facilities (Gulhwa, Kangdong) are planned to be built
under ‘Build-Transfer-Lease’ contract with private sector, while a sewage facility (Yongam) located at
national petrochemical industrial park is built exclusively by central government’s financing.
 23

Target Area Nature of Eco-efficiency Selected Indicator Remarks

Water quality Environmental load Biological Oxygen Demand Improved (BOD)
(BOD) 7.8 (1998)/
1.7 (2007)
Water quality Economic value (benefit) Willing to pay in money term Increased
2, 747.5 Won /month
(2008)
Water quality Environmental/Economic Degree of satisfaction on Increased
water quality of Taehwa river 2.21 (2004)
3.70 (2009)
Water quality Economic value (cost) cost/ improvement of BOD level Increased
-1.12 ppm (dredging)
- 1.68 ppm(netwoking)
Ecological Environmental restoration Number of Species & natural Improved
restoration habitats (No. of salmon)
5 (2003)
614 (2009)
Urban Economic value Property value Increased
regeneration (2005- 2009) Riverfront: 40.6%
Non-riverfront: 10.1%
Technical Environmental/Economic Local River Management System Enhanced
management Supply ratio (sewage)
59.0 % (1998)
91.6% (2007)
Amenity & Environmental/Economic Degree of satisfaction on the Increased
Accessibility environment of Taehwa River Satisfied (89.9 %)
Social & Environmental/Economic Institutional Arrangement Enhanced
institutional Involvement of
governance local stakeholders
Social & Environmental/Economic Degree of public involvement Enhanced
institutional (local stakeholders’ activities on Local NGOs &
governance Taehwa River project) Business sectors
Local response Environmental/Economic Level of environment Increased
improvement of local river 3.50/5.00 (citizen)
3.40/5.00 (expert
Financing Economic cost Financial modality Diversified
(subsidy, PPP) PPP (BTL/BOD)

There are sevreal policy implications of urban environmental infrastructure drawn from the experience
of Ulsan case study. First of all, all policy responses on urban environmental infrastructure should be
considered from mid-long term perspective. As matter of fact, the majority of urban environmental
 24

infrastructure project including, river pollution remediation projects, upgrading and expansion project
of sewage treatment facilities require consistent and huge investment in long term. In addition, a
closer examination of cumulative effects on environmental condition of local river projects is essential.

Second, a review of Ulsan’s river improvement project demonstrates the value of comprehensive
master plan in strategic consideration on resources and capacities at local level. Hence, local
municipalities in Asian cities are required to establish well-designed master plan in advance, and then
to formulate implementation plans under comprehensive planning framework.

Third, local government should be cautious concerning the environmental consequence of riverfront
development. Local policymakers must be aware of consequence and priority of the concerned
development project. As seen in Ulsan’s case that local people put more priority on ecological
aspects, it should be noted that excessive riverfront development hampers ecological recovery of
local rivers that should be a virtual goal of river management project.

Fourth, public involvement on local environmental projects is increasingly significant in many Asian
cities. It is widely recognized that local environmental issues such as air pollution, water
contamination and waste generation can not be addressed by conventional approach, in which local
government takes an exclusive player driven by supply-led policy measures based on limited capacity
of local resource. Therefore, the participation of local business and industrial sector as a major
stakeholder should be strongly recommended.

Fifth, the diversification of financing resources on urban environmental infrastructure should be taken
seriously. As examined in Ulsan’ case, a local government is often facing financial deficiency to
exclusively meet the increasing demanding of urban infrastructures because of other provisions of
municipal services such as social welfare and public health are also growing. Therefore, new
financing alternatives such as PPP and other innovative modality should be strongly recommended
for a few Asian cities that are struggled for severe deficiency of urban infrastructure.

Lastly, political commitments from local political leaders can be mentioned one of key factors
contributing for effective implementation of Taehwa River Restoration Project. Indeed, the elected-
mayor of Ulsan Metropolitan City has always put higher policy priority on the improvement of urban
environment among several urban policy agendas. Such political commitment is to greater extent
effective not only in implementing the concerned policy measures, but also in mobilizing local
resources on local river project. In this sense, strong commitment from local leaders should be
emphasized for effective river management project.
Reference
IGES, 2001, Urban Environmental Challenge in Asia: Current Situations and Management Strategies,
Institute for Global Environmental Strategies
 25

Jeon, W.H. 2005, The Study on Ecological Restoration at Urban River: The Case of Taehwa River in
Ulsan, Hanyang University.

Jeong, Hoeseong et al, 2005, The Study on Sustainable Development Indicators, KEI Research
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Kim, J.H., Kwon, C.K. 2008, The Study of Economic Effect Analysis on the Improvement of Water
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Ku, D.H., Han, S. J., Jeong, W.G., 2008, Environment Problems and NGO’s Responses in Ulsan,
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