The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-hoon, “Korea Eximbank”) announced on November 7 that it will provide USD 100 million in EDCF* loans to Myanmar for the 500kV Transmission Network Extension Project in Taungoo-Kamanat.

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges with the developing world 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.

Korea Eximbank Chairman Lee, Duk-hoon met with Managing Director of Myanmar Electric Power Enterprise U Htein Lwin in Yangon, Myanmar and signed the loan agreement for the project.

The transmission network project whose size is USD 100 million, the largest size among EDCF projects in Myanmar, is the first project EDCF will implement since the Korean government resumed assistance to the country in October 2011. The project is expected to serve as a corner-stone for promoting bilateral economic cooperation.

In particular, the electricity sector is one of the Myanmar government's top priority sectors in its national development policy. To increase electricity supply by building the key national electricity network, the Myanmar government has requested the Korean government to provide assistance after selecting the electricity project as a priority EDCF candidate project.

The project aims to establish a long distance electricity network to transmit the electricity generated from the hydroelectric power plant in the north to Yangon, the economic center in the south.

The power cable is 454km in total length, of which EDCF will support the 188 km Taungoo-Kamanat section near Yangon.

Once the project is completed, it is expected that the chronic electricity shortage in the southern region will be greatly alleviated, thereby improving the living conditions of Myanmar citizens and boosting economic growth through enhanced industrial activities.

At the signing ceremony, Chairman Lee remarked, "Taking the momentum from next week's ASEAN+3 Summit to be held in Myanmar and the upcoming special Korea-ASEAN summit** in December in Busan, I believe Korea and ASEAN countries will build stronger trust and economic cooperation."

**The special Korea-ASEAN summit will be held in Busan from December 11 to 12 to celebrate 25 years of Korea-ASEAN dialogue relations established in 1989.

Chairman Lee added, "This EDCF project will not only enable Korean businesses to transfer their advanced technologies to Myanmar but also make contributions for Korean SMEs to enter the ASEAN*** market."

***ASEAN member states: Myanmar (current chair), Cambodia, Indonesia, Malaysia, Laos, the Philippines, Singapore, Thailand, Vietnam, Brunei

EDCF support to Myanmar amounts to USD 240 million in loans for a total of eight projects. Myanmar is the 11th largest beneficiary out of 51 partner countries of EDCF.