Korea Trade Insurance Corp. (K-Sure) said on Jan. 30 that it would provide US$375 million in export finance to Daewoo Engineering & Construction for its LNG plant construction project in Nigeria.
The project is to add Plant #7 to an LNG plant complex site in southern Nigeria. The project’s engineering, procurement, and construction (EPC) value is about five trillion won. Daewoo E&C will take two trillion won of the total construction cost.
Daewoo E&C won the project by forming a consortium with Saipem of Italy and Chiyoda of Japan. The LNG liquefaction plant market is dominated by builders in the United States, Japan, and Italy.
To raise funds, a group of creditors will be formed including Korea Trade Insurance Corp., the Korea Export-Import Bank, export credit agencies (ECAs) and global banks. Loans backed by the mid- to long-term export insurance from Korea Trade Insurance Corp. will be used to pay for exported materials and equipment exported by Korean companies and payment for construction by Korean builders.
In addition, Daewoo E&C will procure a total of US$190 million worth of materials and equipment, with small and medium-sized Korean enterprises accounting for US$70 million worth of materials and equipment.
Korea Trade Insurance Corp. plans to provide up to 800 billion won in export finance for national development projects in 2020.