□ On May 5, Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) announced that the Bank will provide a record USD 200 million in EDCF* support for the construction of Vam Cong Bridge across the Mekong River in Vietnam.
* Economic Development Cooperation Fund (EDCF): Established by the Korean government in 1987, EDCF supports industrial development and economic stabilization in developing countries through long-term, low-interest grants and promotes economic exchange with Korea. Operation and management of EDCF was entrusted to Korea Eximbank. As of April 2011, a total of KRW 6,767.2 billion in EDCF funding has been provided to 251 projects in 46 countries.
○ Chairman Yong Hwan Kim met with Deputy Minister of Finance of Vietnam Truong Chi Trung and together, they signed a loan agreement in Hanoi, Vietnam.
○ The signing ceremony was attended by officials including Prime Minister of Vietnam Nguyen Tan Dung, President of Asian Development Bank (ADB) Haruhiko Kuroda, and Minister of Strategy and Finance Jeoung Hyun Yoon.
□ The Vam Cong Bridge project will involve the construction of a cable-stayed bridge across the Mekong River, which is the longest river in Southeast Asia and runs through 6 countries including China, Vietnam, and Cambodia.
* Cable-stayed bridge: a bridge supported with cables attached to columns (towers or pylons of the bridge). Incheon Bridge, Seohae Grand Bridge, and Dolsan Bridge are examples of cable-stayed bridges in Korea.
○ The Vam Cong Bridge construction project was much discussed at the Korea-ASEAN Commemorative Summit in June 2009 and the ASEAN+3 Summit in October 2010 as a top national priority in Vietnam.
○ Once the bridge is completed, it will link the most direct transportation network between Ho Chi Minh and the MeKong Delta Region*, the largest breadbasket in Vietnam, and is anticipated to reduce cargo transportation times by as much as three hours.
* The Mekong Delta Region is a major agricultural area accounting for 50% of Vietnam’s rice production and 80% of rice export amounts. The region has been limited by growth-related shortcomings such as poor transportation infrastructure.
○ This project is anticipated to improve transportation of Vietnam*’s main export item, rice. Moreover, the project is anticipated to develop trade and tourism among the Mekong River’s neighboring countries.
* Vienam is the third largest exporter of rice.
□ This project is part of a larger USD 750 million project encompassing three independent projects. The other two projects involve construction of 2km long Khao Rang Bridge and 15kms of access roads between Vam Cong Bridge and Khao Rang Bridge.
○ Above all, the project is recognized as a new support model with increased project efficiency. EDCF, ADB, and AusAid shared information and collaborated to co-finance the project from its initial stages.
□ An official from Korea Eximbank stated that “Specialized cable-stayed bridges can create immense EVA (Economic Value Added) for related industries. With enhanced logistics, beneficiaries can secure a solid foundation for economic growth and Korean companies can gain a stepping stone to the industries of the beneficiaries. Therefore, Korea Eximbank will continue to actively support the construction of specialized bridges.”
□ Korea Eximbank currently supports 36 projects in Vietnam with financing totaling USD 1.25 billion.
