Starting Well
According to the International Contractors Association of Korea, South Korean construction companies signed international contracts worth a total of approximately US$2.8 billion between January 1 and 25 this year, up 71% from a year ago.
The contracts include US$1.467 billion in the Middle East, US$1.298 billion in Asia, US$64.63 million in Africa, US$35.29 million in North America and the Pacific region, and US$4.79 million in Europe. The amount is negative US$146.9 billion in Latin America. The contracts in the Middle East account for 48% of the total, and the ratio was 29.6% in the same period of the previous year.
On January 5, Daewoo Engineering & Construction received an intention to award with regard to the second phase of the multipurpose construction project for the Hallure River in the Philippines. The project has a cost of US$193 million in total. On January 24, Daewoo Engineering & Construction signed the final contract for the second package of a sea bridge construction project in Mumbai, India, which is estimated to cost US$897 million.
On January 11, SK Engineering & Construction received an intention to award from the Government of Hong Kong in relation to the Yau Ma Tei East section of the Central Kowloon Route. The project is worth a total of US$640 million and SK Engineering & Construction has a 40% share in the project. On January 24, Samsung Engineering signed a petrochemical plant construction project with TTCL in Thailand. The size of the contract is 880 billion won and Samsung Engineering is slated to be in charge of a 670 billion won portion.
South Korean builders are expected to enjoy favorable business conditions this year based on, for example, financing support from the Export-Import Bank of Korea and the Korea Trade Insurance Corporation. “Although their annual performance stood at below US$30 billion last year, market conditions are likely to show at least some improvement this year based on a recovery of the global economy and a rise in oil price,” said the Construction and Economy Research Institute of Korea.