The Korea Development Bank (KDB) announced on July 13 that the bank will invest about US$130 million in the Haikou International Airport Expansion Project in Hainan Province, China, one of China’s “One Belt, One Road” Projects.
The project is a large-scale US$2.8 billion national project supported by the Chinese central government and the Hainan provincial government. The KDB invests in this project by creating a private equity fund (PEF) in Korea.
Hainan Province is a representative tourism and logistics hub in the southernmost part of China and the core of the “One Belt, One Road” Projects. Haikou International Airport is the largest airport in Hainan Province which is used by 20 million people a year. The airport has a stable business structure such as running the only domestic duty free shop in China.
In addition, the KDB plays an active role in Korean enterprises’ participation in infrastructure projects through the Asian Infrastructure Investment Bank (AIIB) led by China. The company is brokering project financing (PF) for the Georgian Nensrka Hydropower Power Plant project, the first AIIB cooperative financing project for the first time as a Korean financial institution.
The project will build a hydroelectric power plant with a capacity of 280 MW in the Nanskra River in the northwestern part of Georgia and sell the generated power to a state-run power company for 36 years. The project will cost a total of US$1 billion.