ANNOUNCEMENT 21 Jun 2012
On 5 June 2012, the Export-Import Bank of Korea (Korea Eximbank) announced signing an Economic Development Cooperation Fund (EDCF) loan agreement with the Ministry of Finance and Economic Development of Ethiopia for the Sululta-Gebre Guracha Power Transmission Project with Korean company participation.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 21 June 2012, Korea Eximbank Helps Light Up the Night in Ethiopia: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=32&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16739
Guide to the Export-Import Bank of Korean: http://ehf.koreaexim.go.kr/File.down?file=/attach_file/conts/en/_English_guide_book.pdf
The loan agreement between the Korean Eximbank and the Ministry of Finance and Economic Development of Ethiopia has a total volume of USD 78.4 million. The loan finances the Sululta-Gebre Guracha Power Transmission Project. This project will install substations and transmission lines in the state capital Addis Ababa and the Oromia region. Korean companies will participate in the construction and engineering process of the project.
In this context, the Bank stated: "Korean companies will take on the engineering and construction processes of the project and as such, the project is anticipated to serve as a bridgehead for entry by Korean companies into Africa’s power infrastructure market."
The Economic Development Cooperation Fund
The EDCF provides low-interest and long-term credit to developing countries for projects seeking to promote industrialisation and economic stability. In some cases, Korean companies are involved in such projects directly or through exports. More information on the Fund can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.
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.