AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 20 October 2016, the Korean Eximbank announced providing a total value of USD 3.1 billion for the Barakah Nuclear Power Plant project in the United Arab Emirates. The tender bid for this project was awarded to the Korean company Korea Electric Power Corporation by Emirate Nuclear Energy Corporation. Out of the USD 3.1 billion, USD 2.5 billion will be allocated to a joint venture between Korea Electric Power Corporation and Emirate Nuclear Energy Corporation. The remaining USD 600 million be allocated to the Korean company, which will used for equity funding.
The Korean company will manage the project to build a nuclear power plant. The Eximbank, however, noted that they expect the project will lead to other Korean companies playing role, such as engineering, procurement, and construction.
In this context, an official of the Eximbank stated: "This project conveys quite a significant meaning because Korea Eximbank had clearly expressed its intention to finance the project from the very initial stage and took the lead on supporting Korean companies aspiring to pioneer new markets abroad."
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
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