AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The Korean Eximbank's financial support in project financing for the Morocco Jorf Lasfar Thermal Power Plant Construction Project has a total value of USD 350 million. The project was awarded to a consortium consisting of Korean Daewoo E&C and Japanese Mitsui & Co. More specifically the Korean company conduct the Engineering, Procurement, Construction (EPC) process for the project, whilst the Japanese company will be purchasing the necessary equipment from Japanese exports.
In this context, the Bank stated: " The Bank helped the Korean firm win the contract by expediently issuing a letter of intent during the bidding stage, which was participated by leading energy companies such as the Alstom Consortium of France. In addition, the Bank utilized its financial advisory expertise and overseas networks and cooperated with Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) in advance of the contract stage to diversify funding sources."
JBIC has also supported this project, see related measure.
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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