□ On May 31st, Korea Eximbank President Kim Dongsoo met with the Minister of Finance of Laos Somdy Douangdy in Vientiane, Laos and signed a credit provision agreement providing US$4.7 million through EDCF for four projects implemented by the government of Laos including the Greater Mekong Subregion (GMS) Northern Power Transmission Project.
* EDCF (Economic Development Cooperation Fund) supports industrial development and economic stability in developing countries through long-term, low-interest credit. In order to enhance economic exchange with Korea and promote economic development cooperation, the Korean government established EDCF in 1987 and entrusted Korea Eximbank with its operation. As of April 2010, EDCF has supported 231 projects in 47 countries with US$543 million.
□ The GMS Northern Power Transmission Project will establish power transmission and distribution networks for stable electricity supply to farming villages and industrial and commercial electricity consumers in Northwestern Laos. The project is co-financed by ADB, and approximately US$3.8 million in EDCF will be provided.
□ Projects related to GMS (Greater Mekong Subregion) in the areas of transportation, tourism, energy, etc. are actively implemented by ADB and six adjacent countries along the Mekong river to maximize mutual economic cooperation.
□ In the Northwestern area of Laos, where the project is currently being implemented, most residents do not have access to electricity due to the lack of a national main network. However, by 2015, when the project will be completed, 75,000 households in the area will get access to electricity.
□ According to a Korea Eximbank representative, "By supporting the expansion of development infrastructure such as power transmission & distribution networks and substations in the initial state of development project, we can better establish a foundation for the export of electricity related plants to this region in the future."
- On the same day, President Kim also agreed to support the establishment of fire protection and medical facilities in Laos and signed credit provision contracts providing US$3 million in EDCF financing to three projects each providing fire safety equipment and facilities to 5 airports and Vientiane as well as medical equipment to 109 hospitals.
□ On June 1st, President Kim also met with Deputy Prime Minister & Minister of Economy and Commerce Keat Chhon to sign a credit provision contract providing US$30 million in EDCF to the Cambodia Northwestern Road Improvement Project.
□ The Cambodia Northwestern Road Improvement Project is a project to improve National Highway 56, located in Northwestern Cambodia. Through this project, the road network is anticipated to accommodate 30% more traffic while reducing travel time in half. The project is forecast to promote social and economic development, stimulate trade with Thailand, and develop the tourism industry.
□ As part of economic cooperation, Korea Eximbank is supporting 8 projects in Laos with US$132 million in EDCF financing, and 8 projects in Cambodia with US$249 million.
