AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The Korean Eximbank's financial support for the construction of a coal-fired power plant in Viet Nam has a total value of USD 510 million. The Korean company Hyundai Engineering & Construction Co., Ltd was awarded the USD 1.27 billion ECP contract by the Vietnam Electricity (EVN). 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: "Korea Eximbank played a key role in helping Hyundai E&C win the contract. Earlier in the project, EVN planned to obtain all of its financing from ADB, but incurred unexpected overhead costs from delays in the project. Korea Eximbank responded quickly by issuing a letter of intent (L/I) to finance the resulting shortfall of funds, which is said to have been a decisive factor in the awarding of the contract to Hyundai E&C."
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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