IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 13 Mar 2012 | Removal date: open ended
Still in force

Trade finance

The Korean Eximbank's financial support for the Saudi Rabigh 6 Thermal Power Plant Construction Project has a total value of USD 950 million. The Korean company Doosan Heavy Industries was awarded the entire EPC (Engineering, Procurement & Construction) contract for the project by Saudi Electric Company.

In this context, the Bank explained: "Doosan Heavy Industries emerged as the single contractor winning the order among Siemens (Germany), Alstom (France), and Mitsubishi (Japan), setting a precedent for recognition of Korean expertise in plant exports to Saudi Arabia, the Mecca of Middle Eastern economies. The Korean company will undertake the entire EPC (Engineering, Procurement & Construction) project which will provide electricity for 900,000 households. Korea Eximbank contributed greatly to the award of the contract to Doosan by issuing a Letter of Intent for Financing early in the bidding stage."

In a press release,  Doosan Heavy Industries further elaborated: "Notably, Doosan will place orders worth around US$ 860 million with a number of small and medium-sized Korean companies, thereby proactively participating in the national campaign to promote co-prosperity between conglomerates and smaller companies."

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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

461 Electric motors, generators & transformers; parts
8502 Electric generating sets and rotary converters.
850213 Of an output exceeding 375 kVA
8504 Electrical transformers, static converters (for example, rectifiers) and inductors.
850423 Having a power handling capacity exceeding 10,000 kVA
850434 Having a power handling capacity exceeding 500 kVA
850440 Static converters
850490 Parts
462 Electricity distribution & control apparatus; parts
8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and nu
853720 For a voltage exceeding 1,000 V
531 Buildings
532 Civil engineering works

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