The Export-Import Bank of Korea (www.koreaexim.go.kr, Kim Yong-hwan, “Korea Eximbank”) announced on December 19 that it concluded a USD 100 million EDCF loan agreement with the Uzbekistan government to support the “21st Century Uzbekistan-Korea Friendship Children’s Hospital Project.”


* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges with developing countries and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee. As of the end of November 2013, EDCF has supported 299 projects in 50 countries with KRW 9.4 trillion (commitment basis).

Korea Eximbank Chairman Kim Yong-hwan met with the Uzbekistan Deputy Prime Minister and Finance Minister Rustam Azimov at the Seoul Shilla Hotel on December 18 and signed the loan agreement for the project.

By agreeing to a USD 100 million loan, Korea Eximbank will be extending the largest EDCF loan ever seen to a Central Asian country.

The 21st Century Uzbekistan-Korea Friendship Children’s Hospital Project is aimed at building a world- class children’s hospital in Tashkent, which will be equipped with 275 beds and cutting-edge medical facilities.

Due to the poor state of child health care system, Uzbekistan can currently only offer limited health care services for children with severe diseases that require highly advanced medical treatment; the country’s infant mortality rate is 10 times higher than that of the OECD average. (World Bank, 2011)

The mortality rate of children under 5 years of age per 1,000 newborn babies reaches 48.6 per 1,000 in Uzbekistan while the OECD average is 4.8 per 1,000.

Korea Eximbank expects that this EDCF project will drastically improve children’s medical care environment in Uzbekistan. Moreover, it expects that the project will greatly contribute to opening up global markets for Korea’s highly advanced medical technologies and systems.

In particular, the project is expected to become a best practice in which aid effectiveness gets maximized through linking grant and concessional loan programs.

Korea Eximbank is sending project advisors, providing medical staff training and hospital operation support jointly with KOICA and KOFIH through inter-agency aid coordination from the initial project identification and planning stages.

After the signing ceremony, Korea Eximbank Chairman Kim Yong-hwan said, “Uzbekistan, with its abundant natural resources, is being recognized by Korea as a key partner of economic cooperation in accordance with President Park’s Eurasia Initiative.” He added, “This project will solidify Uzbekistan’s social safety nets while greatly contributing to opening up new overseas markets for Korea’s advanced medical systems.”