□ On July 8, Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) concluded its first MOU with Ethiopia for provision of USD 100 million in EDCF for the construction of basic infrastructure such as power, roads, etc.
* Economic Development Cooperation Fund (EDCF): established by the Korean government in 1987, EDCF supports industrial development and economic stabilization in developing countries through long-term, low-interest grants and promotes economic exchange with Korea. Operation and management of EDCF was entrusted to Korea Eximbank. As of late June 2011, a total of KRW 6,807.3 billion in EDCF funding has been provided to 253 projects in 46 countries.
○ Chairman Kim signed the MOU with Minister of Finance and Economy Development of Ethiopia Sufian Ahmed at the presidential palace in Addis Ababa, the capital of Ethiopia.
○ The signing ceremony was attended by President Myung-Bak Lee and Meles Zenawi, the Prime Minister of Ethiopia.
□ The MOU entails EDCF support for expansion of the power grid in Gebre Guracha and road construction in Gore-Tepi as well as co-financing with AfDB for expansion of the power grid for Ethiopia-Kenya.
□ Ethiopia, which looks upon Korea as a model for economic growth, has hoped to receive EDCF support for power and transport infrastructure development, such as power grids and roads, which is a top priority of the nation’s 2011-2015 Growth and Transformation Plan.
* Ethiopia hopes to expand its road network from 49,000km to 65,000km and to increase the penetration rate of electricity from 41% to 75%.
□ Chairman Kim stated, “Through this first EDCF support for Ethiopia, an ally during the Korean War 60 years ago and a comprehensive key partner country, the bank hopes to enhance Korea’s status in the international society and promote expansion into emerging markets by Korean companies.
□ In order to contribute to anti-poverty efforts in Africa, support the efforts of Korean companies to expand into emerging markets, and secure natural resources, EDCF will earmark 20% of new approvals for the next five years (2011-2015) to Africa.
