AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The Indonesia Cirebon Independent Power Project was initiated by the Indonesian government and involves the construction and operation of a coal-fired power plant. The Korean companies will participate in this project. This includes the Korean companies Korea Midland Power Corporation, participating as the operator; Samtan Co. Ltd, supplying coal for the project; as well as Doosan Heavy Industries & Construction Co. Ltd, participating as the power plant exporter.
In this context, the Korea Eximbank: "This project is expected to highly stimulate job creation in related industries as Korean companies have a substantial role in the construction and operation of the project. As such, this project will serve as a new model for overseas expansion of power projects".
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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