Korea to join $140 bil. project to rebuild Ukraine's transport, energy infrastructure

This photo released by Ostorozhno Novosti, July 17, shows damage to a roadway on the Crimean Bridge connecting the Russian mainland and the Crimean Peninsula over the Kerch Strait. AP-Yonhap

By Lee Kyung-min

The government plans to support efforts by state-run and private construction companies involved in a $140 billion (180 trillion won) project to rebuild war-torn Ukraine's transport infrastructure and energy sectors, according to government ministries and observers, Sunday.

About 70 trillion won will be handled by Samsung C&T, Hyundai Engineering & Construction, Kolon Global, HD Hyundai XiteSolution and Hyundai Rotem ― firms that attended a meeting to discuss the reconstruction of Ukraine on the sidelines of President Yoon Suk Yeol's visit to Poland last month.

Hyundai Engineering & Construction signed a memorandum of understanding (MOU) with Ukraine's Boryspil International Airport for reconstruction and expansion projects. Samsung C&T signed a smart city development deal with Lviv, a city in western Ukraine.

A land minister-led delegation will be dispatched to facilitate cooperation in reconstruction as early as this month. The working-level team will be headed by Minister of Land, Infrastructure and Transport Won Hee-ryong. A separate group of high-ranking trade ministry officials will be sent in October, according to the Ministry of Trade, Industry and Energy.

Included among the land minister-led delegation will be infrastructure-oriented firms with experiences in building roads, bridges and public facilities, whereas energy and plant builders as well as state-run energy firms are likely to accompany the teams organized by the industry ministry.

The Korea International Trade Association will also hold a seminar in Seoul, Aug. 29 on the issues and prospects of joining efforts to rebuild Ukraine.

Anchoring the government plan to speed up participation in the reconstruction projects is a March report jointly published by the United Nations, the World Bank and European Union.

According to the report, $134.7 billion in losses have been incurred across Ukraine since the Russian invasion in February 2022.

In addition to the $140 billion transport and energy infrastructure rebuilding project is more than $400 billion in total needed for the reconstruction of housing and telecommunications systems and land mine removal projects.

Around $130 billion, or one-third of the total, will be needed by 2026. Demand for reconstruction over the next 10 years is estimated at $410.6 billion.

Among the various infrastructure sectors, the rebuilding of destroyed residential housing accounts for the largest allocation ($50.4 billion), followed by transport ($35.7 billion), commerce and industry ($10.9 billion) and energy ($10.6 billion).

Korean builders will be able to help the Eastern European country rebuild highways and roads ($26.4 billion) as well as electricity facilities for railways and train stations ($23.3 billion).