– Establishment of public-private cooperation governance, including strengthening the role of the public, strengthening package support such as ODA and policy finance linkage, and promoting high added value in the overseas construction industry, such as supporting K-new city exports

Ministry of Land, Infrastructure, and Transport(Minister Park Sang-woo) 723 morning open Resolution of the Economic Relations Ministers' MeetingThrough "Plan to revitalize overseas investment and development projects」(hereinafter referred to as “activation plan”) is announced.

 

Ministry of Land, Infrastructure, and Transporthas been Industry meeting hosted by the Minister('Overseas Construction Order Platform', 7.11), Industry and Experts, 공공 기관participated in this TF operation(February to May 24.2), etc. through continuous discussions. Prepare a plan to revitalizeIt was.

 

□ Recently Overseas construction marketinfrastructure·Expansion And Housing·urban development demand* is steady 증가In a situation where Financial burden of each country for relief Attracting private investmentdoing investment development projectSustainable growth**This is the trend.

 

🇧🇷world population] 0.7%/연↑(‘20)78억명→(’50)97억명 [urban population] 1.37%/year ↑, 44 billion people → 67 billion people

** developing countries : (`20) $457 billion → (`21) $762 billion → (`22) $917 billion → (`23) $860 billion (* World Bank)

 

investment development projectWhen receiving an order, project implementeras business plan·Development, Financing and construction, operation·관리 Etc Before business(all) step orderIt's possible I'm·backward ripple effectHigh added valueCreation*can do. but, Our companyof Overseas ordersFocus on contract business(Order proportion: 94.7%, '19~'23).

 

* In addition, industry evaluations show that investment development projects are more profitable (more than 3%) than contract projects (5-10%).

 

ㅇ Accordingly, the Ministry of Land, Infrastructure, and Transport supports the overseas construction industry. High added valueand before construction(all) Entering the field packageTo enlarge, higher marketOverseas investment development project for advancement measureshas been prepared.

 

□「Plan to revitalize overseas investment and development projects"of Main ContentIs as follows.

 

Establishment of public-private cooperation governance

 

ㅇ First of all, Summit diplomacy effectmaximizationIn order to, Strategic Countries and Projectsselect and every year Investment and development project support planprepare a new

ㅇ Also, High external credibilityNegotiation power with other governmentswith 공공 기관leading investorParticipate with Secure business opportunitiesso Role of public institutionsstrengthen.

 

- 철도·road·공항·Housing Etc specialized public institutionsPublic-private joint venture strategy for each promising countryEstablish a new Role of public institutions(Securing shareholding ratio, etc.) and Private sector linkage plan Prepare the back, Promising countryAbout EarlyFrom establishing a basic plan, design·자문, know-how support your back Base for advancement Activate arrangements.

 

※ (: 철도) public(Industrial Complex Construction·Korail Operation)+civilian(ENG company, railway vehicle company, system equipment company, etc.) jointly enters the market

 

- 공공 기관 Management evaluation criteriato 'Overseas investment development project'Reflecting related content, Characteristics of investment development projectstaking into account Public institution preliminary feasibility study relation Evaluation Guidelines arrangements, etc. 공공 기관of Participation in investment development projects for promotion system improvementis being promoted again.

 

ㅇ Along with this, Investment development agencyOverseas Infrastructure and City Development Corporation(KIND) Enterprise support featuresfurther strengthen.

 

- Our companyof Secure business leadershipfor CHILDof Share of equity investmentEnlarge (up to 30% → 50%) and Participation as a major shareholder is permitted.(Currently not possible).

 

- Investment requirements Also Construction order received mainly Equipment, 차량 etc 'Accompanying related industriesentry effect' and improve it to also take into account Shares of our company EXIT induce reinvestment afterfor CHILDAcquisition of shares ofis also allowed.

 

Enhanced package support

 

large scale financethis is needed Characteristics of investment development projectsof ConsiderationSo the government's ·free ODA with connection Policy finance and risk management Etc Support policy packagesdo.

 

ㅇ First of all, investment development project Increased profitabilityRelieving the burden of long-term investment for companiesfor ODA(Official Development Assistance) and EDCFBy newly linking the (External Economic Cooperation Fund) projectpromotes

- E.g, entire project medium non-commercial partRecipient country governmentEDCFUtilizing Financial ordering projectProceed to commercial partOur companybusiness operatorinvestment development projectProceed to or

 

- Recipient country governmentEDCF 또는 free ODAOur company utilizes 사업About Construction subsidies and fixed payments*(EDCF), equipment·Equipment(Free ODA) etc.

 

* Construction subsidy (VGF): The government pays the project SPC as a lump sum in the form of a construction subsidy at the beginning of construction.
Fixed payment (AP): The government receives the operating income of the constructed facility and pays a fixed payment to the business operator in return for facility maintenance.

 

 

 

ㅇ Along with this, Our companyof overseas plant·infra·Smart city investment development project Supporting advancement PIS 2step fundEstablished a new facility (total size of 1.1 trillion won), Export-Import Bank’s export financing(loan, guarantee, etc.), etc. Policy finance supportAlso runs in parallel.

 

Risk management by business stagefor Early days of business부터 riskFor the author·Verification(R/S, Risk Survey) support is newly promoted, Recovery and Reinvestment To prepare risk management measures such as Feasibility study(F/S), etc. are supported.

 

ㅇ These Target of package supportbe this Discover strategic business and specific ·free ODA Link To closely discuss measures, etc. Between working organizations* council(‘ODA-PPP consultative body’) was newly formed and Selected as a pilot project within the yearpromote.

 

* composition : KOICA(Free ODA), Export-Import Bank(Paid ODA/Export Finance), CHILD(Investment business/PIS fund)

Expanding specialized entry into the urban development field

 

blanket 'long term·Large-scale'in Characteristics of urban development projectsTaking into account, G2G CooperationBased on public-private joint projectproceeding with 'City Growth Partner Program(UGPP, Urban Growth Partnership Program) is being promoted.

 

- specialized public institutionsdeveloperWe first discover business, private construction companyEnter Equity investment and construction orders receivedpromote. after Developed by public institutions부터 completed, Company until occupancyWe plan to continue supporting.

 

ㅇ Especially last year President Yoon Seok-yeolof Vietnamese Diplomatic AchievementsSize of Pangyo New Townof 'Southeast New City, Bac Ninh Province*'city ​​export 1To the ho project We plan to pursue it.

 

* (Location) Area around Bac Ninh Province (about 31km from Hanoi)/ (Area) 850 million ㎡ (about 257 million pyeong)
(Contents) Urban development with a planned population of approximately 11 (apartments, villas, commercial/office facilities, industrial complexes, etc.)

 

- Effects of diplomatic travelDesignation of Team Korea as business operatorThis is expected, erection·design·교통IT covering the back K-Smart new city package through advancement Dongnam New City is our company, Vietnam advance bridgeheadWe plan to support this.

 

< Progress so far regarding Dongnam New Town >

Vietnam summit tour('23.6): UGPP MOU signed between LH and five provinces of Vietnam under Lim Seok, the leaders of the two countries (5 cases)

Vietnam Prime Minister's visit to Korea('24.7): Urban development cooperation MOU signed between LH and Bac Ninh Province specifying Southeast New Town

Dispatch of public-private joint support team to Vietnam(July 24.7, Head Minister MOLIT): Vietnam Construction Department, Party Secretary of Bac Ninh Province
Concretizing the project through high-level meetings, signing an MOU and implementation plan for cooperation between the Ministry of Construction and the Dongnam New Town

 

4 Strengthening private enterprise investment business capabilities

 

Overseas investment development projectFor Offer incentivesfor Construction capability evaluationOverseas investment and development project performanceIncluding,

 

- base countryinstalled on Overseas Infrastructure Cooperation Center*(7 locations) have reorganized their functions to support investment development projects and Local information collection, networking Etc investment development project Supports all related activities.

 

* Indonesia, Vietnam, Kenya, Bangladesh, Saudi Arabia, UAE, Peru

Park Sang-woo, Minister of Land, Infrastructure, and Transport“Our companies’ global capabilitiesIn line with High added value
top marketInvestment and development business field Emphasizing that “it is time to expand our presence,”

 

o “Active role of the public And civilianparticipating with Front-end ordersThrough the K-New city export Activate etc., Government task'27Received overseas construction orders in 2018 500$ XNUMX million “We plan to actively pursue its achievement,” he said.

 

Source: Ministry of Land, Infrastructure, and Transport