By Jhoo Dong-chan
Export-Import Bank of Korea (Korea Eximbank) will provide 415 billion won ($367 million) to finance a refinery project in Bahrain in which a dozen Korean builders are participating, the state-run bank said Friday.
Of the $367 million, Eximbank said it will loan $257 million and guarantee $110 million for Korean builders, including Samsung Engineering, who are participating the $6.6 billion turnkey project in Bahrain.
Samsung Engineering formed a consortium with France-based Technip and Spain-based Tecnicas Reunidas to land the oil refinery upscale deal from state-run Bahrain Petroleum (BAPCO).
The BAPCO project aims to refurbish the country's only oil refinery at Sitra. It includes replacing old crude distillation facility and adding a residue hydro-conversion unit to boost its crude processing capacity.
“Not only Samsung Engineering but also the nation's small- and medium-sized builders are expected to participate in the project as suppliers. It will be a great opportunity for these firms,” said an Eximbank official.
“The Eximbank has been in talks with BAPCO about possible project finance even before the bidding process, contributing to Korean builders' entry to the country. It was the bank's first project financing to BAPCO, and will do its best to clinch a similar deal in the future.”
Korean firms account for a $1.3 billion stake in total. Not only Samsung Engineering but also 12 other Korean builders are in cooperation for the refurbishment work. Also 37 small and medium-sized Korean firms will provide machinery and equipment for the project, according to the Eximbank.
Last week, the Eximbank donated 240 million won to the Korea Central Council of Social Enterprise. It said the half, or 120 million won, will be provided for six social enterprises as facilities or operating funds.
The remaining half will be used to pay salaries and training costs for 20 underprivileged people including North Korean defectors and marriage migrants.