AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The Korean Eximbank's financial support for the Turkey’s Kirikkale Project has a total value of USD 150 million in project financing. The Korean company Samsung C&T Co. is participating jointly with the Saudi company ACWA. This project will install an 805 MW combined-cycle gas power plant in Turkey. The Korean company is participating in the project as a sponsor and sole EPC contractor. An EPC contractor is a "Contractor responsible for the engineering, procurement of equipment and materials, and construction of the plant".
In this context, the Bank stated: "The significance of this project is that we are funding it in the form of project financing, based on a careful assessment of its economic feasibility and profitability, in a market where on-balance sheet corporate financing is the norm. This will open the door to yet more large-scale joint ventures between Korean and Middle Eastern entities in third countries.".
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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