AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The Korean Eximbank provided a USD 100 million loan and a USD 70 million external liability guarantee in project financing for the Government of the Philippines' project to construct and operate a 200MW coal-fired power plant. The Korean companies Korea Electric Power Co. and Korea East-West Power Co. will participate in the project as major operators. Additionally, the Korean company Doosan Heavy Industries & Construction Co. will participate in the project as a power plant exporter.
According to the Korea Eximbank the funding was provided "to facilitate the participation of Korean companies". In this context, a Korea Eximbank official stated: "The Philippines's Cebu Private Sector Development Project is projected to raise USD 360 million in foreign currency inflows and it will also promote foreign capital inflows through the export of generator facilities and equity participation. In addition, this project which adopted environmentally beneficial technologies in the construction of a coal fired power plant will help secure additional orders in similar overseas power plant projects in the future.”
Project Financing is provided to certain foreign large-scale projects. Repayments of such loans include preferential terms such as repayments mainly being made from the project’s own cash flow generation. Project financing loans are solely eligible for projects which include Korean companies participating as an exporter, sponsor or as an operations and maintenance contractor.
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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