Global Infrastructure Fund

POSCO E&C, SK E&C, and Hyundai Amco have been selected as the beneficiaries of the overseas construction project feasibility studies in the Third Global Infrastructure Fund (GIF). 

The Korean Government supports the GIF and feasibility studies to provide assistance for local builders in winning construction projects abroad. Once determined to be feasible enough, the builders are allowed to make proposals and hold information sessions to the ordering body and the government in their target regions. 

In general, a couple of construction projects are determined to be profitable out of approximately 50 subject to feasibility studies. The procedure does entail massive costs. This is why the Ministry of Land, Infrastructure and Transport has conducted the studies in place of builders so as to alleviate their burden. A budget of 500 million won (US$460,236) has been granted in each of the studies. 

Five companies applied for the third phase, and three of them have made it at this time -- BG-Kha Hydroelectric Power Generation Project in Nepal led by POSCO Engineering & Construction (to be provided with a subsidy of 400 million won, or US$368,188); Combined Cycle Power Plant Project in Harran, Turkey by SK E&C (240 million won, or US$220,913); and a Coal-fired Power Generation Project in Sri Lanka by Hyundai Amco (166 million won, or US$152,798). A smaller company sent in an application for its wind power generation project in Vietnam but failed to make it. 

The Ministry of Land, Infrastructure and Transport is going to conduct feasibility studies on a commissioned basis with regard to these projects and deliver the results by early next year. 

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