The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, “Korea Eximbank”) announced on December 19 that it signed a USD 100 million EDCF* loan agreement with the Uzbek government to fund the construction of Uzbekistan's national children's hospital.

On the evening of December 18, Chairman Kim met with First deputy Prime Minister of Uzbekistan and Minister of Finance Rustam Azimov at Shilla Hotel, Seoul, and signed the above loan agreement.

This would be the largest single EDCF loan provided to a Central Asian country.

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee. As of the end of November 2013, EDCF has supported 299 projects in 50 countries with KRW 9.3 trillion (commitment basis).

The project aims to construct a world-class children's hospital equipped with 275 sickbeds and state-of-the-art medical equipment in Tashkent, the capital city of Uzbekistan, to improve the country's child healthcare system.

At present, Uzbekistan lags behind in terms of child healthcare, and offers only a limited range of treatments for serious childhood diseases, which require the use of complex medical technology to treat. The country's infant/child mortality rate is more than ten times the OECD average.

* Under-five mortality rate (per 1,000 live births): Uzbekistan 48.6 , OECD average 4.8

Korea Eximbank expects that this EDCF loan will help to dramatically improve child healthcare in Uzbekistan, at the same time as promoting the export of Korea's excellent medical services and technology.

In particular, this project is expected to make an exemplary case of maximizing aid effectiveness through the combination of ODA loans and grants.

Korea Eximbank has been undertaking this project in connection with the grant programs of KOICA and KOFIH (Korea Foundation for International Healthcare) from its very inception, and is working out plans jointly with those ODA agencies to dispatch project advisors, educate medical staff, and provide operational support for the hospital.

After the signing ceremony, Chairman Kim noted, “Uzbekistan, with its abundant natural resources, is considered an important economic partner for Korea especially in the context of President Park Geun-hye's Eurasia Initiative," adding that "This project will go a long way toward promoting the export of Korea's advanced healthcare as well as strengthening Uzbekistan's social safety net."