Project Financing
Moon Jae-do, president of the state-run Korea Trade Insurance Corp. (K-Sure), signed a US$3 billion (3.36 trillion won) deal to finance South Korean companies, which take part in the Clean Fuel Project, at the signing ceremony held at the KNPC headquarters in Kuwait on May 24 (local time).
Kuwait National Petroleum Company's (KNPC) Clean Fuels Project (CFP) involves the upgrade and integration of the Mina Al Ahmadi (MAA), which is located 45km south of Kuwait City, and Mina Abdulla (MAB) refineries, to increase productivity and produce high value-added refined oil products. Five domestic construction firms are building a plant worth US$7.1 billion (7.96 trillion won), and 136 small and mid-size plant material and equipment producers are joining the project as partner companies.
The project is worth US$14.6 billion (16.36 trillion won) in total and US$10 billion (11.21 trillion won) of money was financed by loan. Seven export credit agencies (ECAs) in five countries around the world, including K-Sure, are providing US$6.2 billion (6.95 trillion won) for the project.
President Moon Jae-do, who attended the signing ceremony as a representative of lenders, said, “Oil-producing countries had carried out a project with their huge amounts of cash during the era of high oil prices in the past, but they are now raising funds through foreign loans. K-Sure will actively provide financial support for projects so that South Korean construction companies and small and mid-size plant companies can be more competitive in the project market in where financial support has become more important to win a project than ever.”