The Export-Import Bank of Korea (Korea Eximbank) announced on March 12 that it will provide USD 950 million for the Saudi Rabigh 6 Thermal Power Plant Construction Project awarded to Doosan Heavy Industries and ordered by Saudi Electric Company (SEC), the largest electricity producer in the Middle East.

Projects ordered by the SEC were generally awarded to firms in developed countries, such as General Electric of the US and Alstom of France, while the participation of Korean companies were generally limited to the export of equipment such as voltage transformers and facilities for transmission of power.

Doosan Heavy Industries emerged as the single contractor winning the order among Siemens (Germany), Alstom (France), and Mitsubishi (Japan), setting a precedent for recognition of Korean expertise in plant exports to Saudi Arabia, the Mecca of Middle Eastern economies.

The Korean company will undertake the entire EPC (Engineering, Procurement & Construction) project which will provide electricity for 900,000 households.

Korea Eximbank contributed greatly to the award of the contract to Doosan by issuing a Letter of Intent for Financing early in the bidding stage.

As this project is the first provision of direct financing by an Asian ECA to SEC, the Bank hopes it will serve as a bridgehead for a “second Middle East Boom.” The Middle East, including Saudi Arabia, is forecast as the largest project market in the future.

A representative for Korea Eximbank commented, “Direct financing for SEC from Korea Eximbank is evidence that the Bank’s reputation in growing in the international large-scale plant financing market. The Bank will continue efforts to serve as a strong supporter for Korean companies participating in large-scale projects.”