AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The Korean Eximbank's financial support for the Colombian Bogota Bus Transit Card and Information Systems Project in Columbia has a total value of USD 62 million according to an external press release by the International Finance Corporation, World Bank Group. The funds are provided in project financing. The Korean company LG CNS was awarded the tender to export a the Intelligent Transportation Systems and is responsible for the project from installation to operation. According to the Eximbank, the Intelligent Transportation Systems (ITS) is the largest export for Korea. An ITS provides "optimal traffic operation through analysis of traffic conditions, management of public transportation, and automatic payment of transportation fees".
In this context, the Bank stated: "Korea Eximbank’s optimal structuring of financing and risk significantly decreased the risk of participating in long-term projects. Evaluating the loan jointly with Korea Eximbank offered a good opportunity to obtain a comprehensive understanding of overseas project financing."
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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