South Korea’s Daewoo Engineering & Construction Co. has confirmed that the state ministry of economy and finance has agreed to provide finance for the $5.7 billion liquefied natural gas (LNG) plant project awarded by the Nigerian government.

The company said the decision was reached last Monday when the finance ministry and related organizations met and agreed to back the project “as part of the Korean government’s new financing policy to encourage local builders to venture into high-risk countries,” Hellenic Shipping said in a statement yesterday

With the latest deal, Daewoo E&C became the first Korean builder to clinch an LNG plant contract overseeing the entire process from front-end engineering design (FEED) to engineering, procurement and construction.

“It’s hard for Korean companies to obtain financing in countries like Nigeria, which has a low credit rating due to violent riots and political instability. The Export-Import Bank of Korea and the Korea Trade Insurance Corporation would be the primary backers, with the government providing additional support,” the statement quoted a Korean finance ministry official.

The country’s Vice Finance Minister, Kim Yong-beom, who chaired the Monday meeting, said the government would closely monitor this year’s pipeline of overseas projects and adjust plans to keep up with the fast-changing global infrastructure market.

He also had a luncheon with major construction firms after the meeting to assess their current project status and hear out their grievances when doing business abroad.

By Chibisi Ohakah

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