Korea Eximbank announced that it will provide project financing worth USD 800 million for the ERC (Egyptian Refinancing Co.) Oil Refinery Project.

Egypt's ERC Oil Refinery Project is a USD 3.7 billion project pursued by EGPC (Egypt Gas Petroleum Company) and ARC (Arab Resources Company) to construct and operate an oil refinery able to process over 500 tons a year of highly refined products such as diesel and petroleum.

Egypt's old and worn out oil refining facilities have caused Egypt to suffer supply shortages of highly-refined petroleum products such as petroleum and diesel as well as severe air pollution.

The government of Egypt views this project as a solution to such problems and has actively pursued private funding for this national project.

Korea Eximbank had expressed active support for the project from the beginning and despite the sub-prime crisis, maintained a leading role in financial negotiations to ensure that GS Construction won the USD 2.2 billion contract for the project.

The authorities from Korea Eximbank stated, "Large-scale projects are anticipated in Africa and this is expected to begin a 'second Middle East boom.' To ensure that plant construction serves as the next driver of growth for the Korean economy, we will provide optimal financial services and support Korean companies in their efforts to secure contracts for these projects.