□ Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) announced on May 2 that the Bank will provide USD 110 million in project financing to support the private investment in the hydroelectric power project in Patrind, Pakistan in which Korean public and private enterprises will be executing entire project including equity investment, construction, and long-term operations.

□ For the USD 436 million project, Korea Water Resources Corporation will construct a 147MW hydropower plant and operate it for 30 years in Patrind, 120km northeast of the capital of Islamabad.

○ The project will be the first overseas investment development project in hydropower in which a Korean company will be implementing the entire project, from construction to operation of the plant.

□ By actively expressing support for the project from the early stages and garnering financial the participation of international development banks ADB, IFC, and IDB, Korea Eximbank played a key role in helping Korea Water Resources Corporation win its first overseas project.

□ This project is a run-of-the-river* hydroelectric power project and is currently undergoing the approval process to register as a UN CDM** project. The Korea Eximbank Carbon Fund is expected to contribute to greenhouse gas reduction by purchasing 45,000 tons (equivalent to KRW 7.5 billion) of carbon emission credits from the project.

* Unlike conventional hydroelectric power plants which artificially control water flows, a run-of-the-river plant protects a river’s ecosystem by allowing water to continuously flow into the river after power generation.

** Clean Development Mechanism: a system that recognizes procurement of carbon emission credits by developed nations (which are obligated to reduce their greenhouse gas levels) from developing nations as greenhouse gas reduction.

□ An official from Korea Eximbank stated, “As the first privately financed investment-development hydroelectric power project, this project represents a new model for expansion into overseas hydraulic power markets by Korean companies. Korea Eximbank will continuously increase its support of high-value hydropower projects as global demand for renewable energy production continues to climb.”