- 1st case joined by Korean private companies taking a part in an Indonesian hydropower generation project
- Korean companies participate in a BOO scheme by forming a consortium.

■ Korea Trade Insurance Corporation (K-sure, www.ksure.or.kr, Kim Young-hak, president) announced that it would provide U$141 million of support to Hassang hydropower generation project in Indonesia through its overseas business finance insurance.

○ The project is to build a hydropower plant with 41MW of power generation capacity in a “Build-Own-Operate (BOO)” model with the aim of increasing the country’s power generation capacity.

○ Korea’s LG International takes 95% of plant ownership through its investment in the project and K-water and POSCO Engineering take their part in as O&M and EPC providers of the project respectively. The Indonesian government provides the guarantee on the purchase of generated power by Perusahaan Listrik Negara (PLN), an Indonesian government-owned power distribution company.

○ The total project amount is U$211 million and, U$148million of it is channeled by creditor banks, and U$ 141million (95%) of which is financed through the overseas business finance insurance of K-sure.

■ Mr. Kim Young-hak, president of K-sure stated that “K-sure’s support to the project is expected to give Korean companies more chances of overseas projects and market expansion into emerging markets such as Indonesia.”

○ He also added that “Winning lucrative overseas projects has a huge wealth creation effect, which can not only boost corporate sales and employment but also increase the possibility of winning additional contracts. With those in mind, K-sure will provide every support to help Korean companies with a strong technological edge win overseas project markets of emerging countries.”