The Government to Provide $21 Mln to Vietnam in EDCF Loan
- EDCF loan totals $2 bln over 120 cases in 37 countries

The government signed an agreement with Vietnam to provide $21 millilon in EDCF (Economic Development Cooperation Fund) to build a solid material waste treatment facility in the Southeast Asian country. The loan will carry an annual interest of 2 percent repayable in 30 years with a grace period of 10 years.

The Vietnamese government will use the fund to an integrated solid material waste treatment facility including equipment to collect, transport and take care of those waste material in line with its environment policy.

Officials of the Ministry of Finance and Economy expected the advancement of Korean firms into the Southeast Asian country to take care of businesses provided under the loan in terms of environmental installations, hoping that the loan to Vietnam would provide the chances for Korean firms to  clinch additional orders in environmental businesses in Southeast Asia.

They also said Vietnam should be able to attain economic benefit from  the waste treat facility project.

The EDCF loan is also hoped to promote a closer diplomatic and political cooperation between Korea and Vietnam as the loan was pledged just prior to President Roh Moo-hyun's state visit to the Southeast Asian country.

The government provided a total of 177.9 billion won in EDCF loan to Vietnam including funds to build a BaRia combined cycle thermal power plant projects altogether.

The government set up the EDCF in 1987 to provide concessionary loans to under-developed countries to promote closer economic relations with those countries and increase its external economic cooperation.

As of Sept. 30, the government approved the extension of EDCF loans to 122 projects in 37 countries.

In the meantime, the government has decided to extend $15 million in EDCF loans to Sri Lanka to finance the construction of potable water pipelines in large cities in the southeast Asian country.

The loan, repayable in 30 years bears an annual interest rate of 2.5 percent and a grade period of 10 years.

The first batch of loan of $27 million has been provided to Sri Lanka to build a reservoire for potable water  under the country's national reconstruction plan and upgrade the living standards of its people to be completed by November this year.

Sri Lanka is the fourth largest recipient country of the government's EDCF loan totaling $162.3 million over 11 cases, starting from August, 1990.

The southeast Asian country established a diplomatic relations with Korea in 1977 with a population of 19.7 million. Its capital is Colombo with Buddhism being the national religion.

Kenya became the recipient of $25 milllion in EDCF loan in July this year, repayable in 30 years with a grace period of 10 years and annual interest rate of 1 percent.

The African country will use the fund to import road repair equipment such as excavators, dump trucks, loaders, tractors, and bulldozers-alotgether 12 kinds totaling 359 units.

Kenya has made the road repair project its priority project to reduce deaths from road accidents that occur due to shoddy road conditions with $400 million in damage to roads annually.

Kenya with a population of 32 million established a diplomatic relations with Korea in 1964 and the African country first received an EDCF loan from Korea in 1992 amounting to around $14 million.

The government granted an EDCF loan of $24 million to Mongolia repayable in 30 years with a grace period of 10 years and annual interest rate of 2 percent.

The Northeast Asian country will use the loan to build part of its highway network extending for 176 km, a section of the Asian Highway linking Russia, Mongolia, China, Laos and Thailand.

The Asian Development Bank(ADB) is financing the first and second sections of the super highway extending for 578 km. The financing of the third section stretching for 432 km is being financed by EDCF and ADB. The completion of 4,000 km-long Asian Highway is expected to help the economic development of Mongolia and the entire Asian regions through expanded economic exchanges along the highway, not to mention bilateral economic cooperation between Korea and Mongolia.

The government provided a total of $34 million in EDCF loans over 5 projects to the Northeast Asian country. Mongolia opened diplomatic relations with Korea in 1990 with a total population of 2.47 million.   nw