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Press Release

Korea Eximbank to provide $1.2 billion for UAE’s subsea transmission network project won by KEPCO

Date 2022.09.25 View 1058

□ The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yoon Hee-sung, "Korea Eximbank") announced on September 25 that it will provide a total of $1.2 billion in project financing for the construction and operation of a high-voltage, direct current* (HVDC) transmission system in the UAE, participated by Korea Electric Power Corporation (KEPCO) and Samsung C&T.

 

    * HVDC (High-Voltage, Direct Current) transmission system : It allows high transmission over longer distances with less power loss and more efficiency. It also transfers power between grid systems running at different frequencies and voltages, used for exchange of power between incompatible networks.

 

 

□ This project is a large-scale infrastructure project worth a total of 5.4 trillion won to build and operate subsea power transmission lines and substation facilities to supply eco-friendly power to offshore oil and gas facilities in Abu Dhabi. It is the first subsea HVDC transmission project in the Middle East and North Africa that Korean companies have won.

 

○ The project, awarded by Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) under the UAE's "2050 Net Zero Initiative," is expected to curb more than 30% of carbon footprints of their operations by replacing old and gas power generation facilities currently in operation with eco-friendly power facilities.

 

 

□ Korea Eximbank has early on made clear its intention to support the project in the bidding stage, and will be providing comprehensive financial services including a $1.2 billion project finance worth 37.4% of the total loan amount for the project and construction performance guarantees of $6.80 billion.

 

 

□ In December 2021, KEPCO won the project in a consortium with Kyushu Electric Power Co. of Japan and EDF of France while Samsung C&T will be in charge ofsubsea transmission engineering, procurement, and construction with Jan De Nul of Belgium.

 

○ With the financial deal finalized, the project is likely to enter the construction stage immediately and the operation of the facilities is scheduled by the end of 2025.

 

 

□ An official from Korea Eximbank said, "This project is the first subsea HVDC transmission project in the Middle East and North Africa in cooperation between state-owned power generation companies, construction companies and financial institutions.“ He added, “We expect this deal would serve as a bridgehead for Korean companies to expand overseas business securing new growth engines to win other potential projects in the market“'