[Gettyimages Bank]
In September, a consortium of Daewoo E&C, Italian engineering firm Saipem and Chiyoda of Japan was selected as preferred bidder for the engineering, procurement and construction (EPC) of Nigeria's "LNG Train 7" project to expand natural gas production.
At a meeting led by Vice Finance Minister Kim Yong-beom on Monday, related ministry officials and policy lenders decided to provide policy financing to Daewoo E&C by using a special account of the Export-Import Bank of Korea and the Korea Trade Insurance Corporation. The account has been established to support South Korean companies involved in rehabilitation projects in high-risk countries with low credit ratings.
"It is urgent to reorganize our support strategy to meet the rapidly changing overseas infrastructure market," Kim said, calling for customized solutions for major overseas projects involving South Korean companies.
Nigeria is struggling to finance infrastructure projects, but its low credit rating makes it difficult for South Korean companies to receive financial support. As in many other African societies, prebendalism and high rates of corruption continue to constitute major challenges to the oil-exporting country, which has tried to expand the production of natural gas.
In November, Daewoo E&C and Saipem forged a strategic partnership for cooperation on targeted opportunities in the oil and gas industry, with emphasis on natural gas. The builder has been involved in a number of projects abroad. In May last year, Daewoo E&Cr grabbed a $290 million order from a Nigerian subsidiary of Indonesian petrochemical group Indorama Corporation to construct a urea fertilizer plant in Port Harcourt, Nigeria.
reporter
Lim Chang-won
cwlim34@ajunews.com
