ANNOUNCEMENT 06 Apr 2012
On 12 March 2012, the Export-Import Bank of Korea (Korea Eximbank) announced providing funds for the Saudi Rabigh 6 Thermal Power Plant Construction Project with Korean company participation.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 6 April 2012, USD 950 Million Provided for Thermal Power Plant Construction Project: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=35&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16711
Doosan Heavy Industries & Construction, press release of 9 September 2010, Doosan Wins US$ 3.44 billion Thermal Power Plant Project in Saudi Arabia: http://www.doosan.com/en/media/press-view/doosan-wins-us-344-billion-thermal-power-plant-project-in-saudi-arabia-20100910182301619122
The Korean Eximbank's financial support for the Saudi Rabigh 6 Thermal Power Plant Construction Project has a total value of USD 950 million. The Korean company Doosan Heavy Industries was awarded the entire EPC (Engineering, Procurement & Construction) contract for the project by Saudi Electric Company.
In this context, the Bank explained: "Doosan Heavy Industries emerged as the single contractor winning the order among Siemens (Germany), Alstom (France), and Mitsubishi (Japan), setting a precedent for recognition of Korean expertise in plant exports to Saudi Arabia, the Mecca of Middle Eastern economies. The Korean company will undertake the entire EPC (Engineering, Procurement & Construction) project which will provide electricity for 900,000 households. Korea Eximbank contributed greatly to the award of the contract to Doosan by issuing a Letter of Intent for Financing early in the bidding stage."
In a press release, Doosan Heavy Industries further elaborated: "Notably, Doosan will place orders worth around US$ 860 million with a number of small and medium-sized Korean companies, thereby proactively participating in the national campaign to promote co-prosperity between conglomerates and smaller companies."
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.