□ Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) hosted the “EDCF Seminar for Overseas Private Participation Projects” at the International Convention Hall of Myungdong Korea Federation of Banks on May 13.

○ The seminar introduced a new support system in which EDCF funds would be used to provide government subsidies and capital or direct loans to cover part of project costs, increasing profitability of the project. Those provisions will be given to project participants when the government of developing countries promote private participation projects.

* Private Participation Project: Project promotion method in which the government raises funds from private companies for operation and construction of public facilities such as electricity networks, railroads, ports, and roads and ensures profitability by allowing private companies to participate in the management of the facility.

○ In addition, Korea Eximbank and Korean companies jointly proposed a plan to promote policy consultations with major partner countries including the Philippines, Vietnam, and Indonesia for identification of promising projects in developing countries.

□ Recently, developing countries have begun to actively attract private investment for greater efficiency and reduced financial burdens in the expansion and improvement of infrastructure for economic growth.

○ As a result, the volume of Private Participation in Infrastructure (PPI) was tripled in 2008 to USD 163 billion from USD 56.3 billion in 2003. Asia Development Bank (ADB) forecasts that PPI in Asia could reach USD 8 trillion between 2010 and 2020.

○ By taking advantage of high infrastructure demand in developing countries, Korean companies could benefit by accumulating extensive track records in overseas projects.

□ EDCF provided to private participation projects will help companies improve business profitability, and the establishment of a direct negotiating channel with the government will strengthen their bargaining power to serve as a platform for advancement into emerging markets.

○ An official from Korea Eximbank stated that “For the past 20 years, Korea Eximbank has supported economic and social infrastructure projects of developing countries through EDCF. With the Bank’s expertise, the Bank will actively support private participation projects and promote infrastructure development in developing countries to serve as a catalyst for expansion of Korean companies into emerging markets.”

○ Approximately 300 participants comprised of representatives from Korea Eximbank, Korea Development Institute (KDI), Bae, Kim & Lee LLC, as well as companies promoting private participation projects of developing countries, attended the seminar.