Korea Eximbank to Provide USD 1 billion Direct Loan for Clean Fuels Project in Kuwait

abarrelfullabarrelfull wrote on 02 Jan 2019 08:02

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The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Choi JongKu, “Korea Eximbank”) announced on March 27 that it will provide a USD 1 billion Direct Loan for the Clean Fuels Project ("CFP") in Kuwait where five Korean construction companies jointly participate as EPC contractors.

The Korean companies include GS E&C, SK E&C, Samsung Engineering, Daewoo E&C, and Hyundai Heavy Industries.

The project is to modernize two refineries in Kuwait, Mina Al-Ahmadi Refinery and Mina Abdullah Refinery, operated by Kuwait National Petroleum Company ("KNPC"), a state-owned oil refining company which owns three local refineries for domestic oil refining and gas liquefaction. The CFP, considered as a mega-scale project reaching as much as USD 14.5 billion in costs, will upgrade the capability of KNPC's refining facilities to convert fuel oil into higher value petroleum products with lower sulfur content.

The CFP is the first project in Kuwait that would receive funding from seven different Export Credit Agencies (ECAs) from five countries, including Atradius Dutch State Business N.V.; Korea Trade Insurance Corporation; SACE S.p.A.; Japan Bank for International Cooperation; Nippon Export and Investment Insurance; and UK Export Finance, other than Korea Eximbank.

A Korea Eximbank official remarked, "In this project, five major Korean construction companies are taking their part to construct USD 6 billion worth of a plant, while more than 150 Korean small and medium-sized enterprises are exporting equipment as KNPC's partners." He added, "Korea Eximbank decided to extend USD 1 billion in the form of Direct Loan when the project is 70~80% completed to promptly provide the funding to KNPC."

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