AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The Korean Eximbank loan in project financing for the construction of the Cirebon coal-fired power plant (PLTU) Unit 2 has a total value of USD 520 million. The power plant is developed by the Indonesian company PT Cirebon Electric Power which is a consortium of companies including The Korea Midland Power Co. and Samtan Co. of the Republic of Korea.
Other financial institutions have provided loans for the project, including the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI), see related state act.
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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