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Daewoo E&C gets state financing for $5.7 bn LNG plant project in Nigeria

South Korea’s Daewoo Engineering & Construction Co. was promised of state financing for the $5.7 billion liquefied natural gas (LNG) plant project in Nigeria, securing the financial support to operate in a country with potentially high business risks.

The Ministry of Economy and Finance and related organizations on Monday agreed to back the project as part of the government’s new financing policy to encourage local builders to venture into high-risk countries.

With the latest deal, Daewoo E&C became the first Korean builder to clinch an LNG plant contract overseeing the entire process from front-end engineering design to engineering, procurement and construction.

“It’s hard for Korean companies to obtain financing in countries like Nigeria, which has a low credit rating due to violent riots and political instability,” said a finance ministry official. “The Export-Import Bank of Korea and the Korea Trade Insurance Corporation would be the primary backers, with the government providing additional support.”

Vice Finance Minister Kim Yong-beom, who chaired the Monday meeting, said the government would closely monitor this year’s pipeline of overseas projects and adjust plans to keep up with the fast-changing global infrastructure market.

He also had a luncheon with major construction firms after the meeting to assess their current project status and hear out their grievances when doing business abroad.
Source: Pulse

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