S. Korea approves $279.5 mln loan for emerging economies

South Korea approved the allocation of $279.5 million in soft loans to support four overseas projects aimed at helping emerging economies build up their infrastructure, the finance ministry said Tuesday.
  

The loans from the Economic Development Cooperation Fund will be offered to the Sapien-Senamnoi hydroelectric project in Laos, the buildup of the public safety management system in Mozambique, resources development on the Len and Hoang Mai rivers in Vietnam and education-related information building in Uzbekistan.
  

Of the total, $88.7 million will go to Mozambique's projects followed by $80.9 million and $77 million being set aside for Laotian and Vietnamese endeavors, each, with the remaining going to Uzbekistan.
  

EDCF is a state-run fund launched in 1987 aimed at helping poor and less-developed countries with loans that carry low interest rates.
  

"The allocations have been based on priority placed by the partner country, with the final decision being made after careful feasibility studies," the ministry said. "The money to be offered will help infrastructure building and contribute to close economic ties between South Korea and the four countries."
  

It said so-called pledges will be sent to the country getting the funds and if they sign off on it, formal loan agreements will be reached.
  

The Sapien-Senamnoi hydroelectric project is aimed at meeting the sharp rise in electricity demand in the Southeast Asian country by building three dams and a 410 megawatt power generation plant. Mozambique's projects call for the establishment of closed circuit TV networks and comprehensive emergency management systems, with funding to Uzbekistan to help build 2,229 computer labs throughout the country for elementary school children.
  

The Len and Hoang Mai river projects call for the construction of dikes and related drainage facilities that can help protect the eco-system from global warming.
  

As of late last year, the government approved little over 11 trillion won ($10 billion) in EDCF with 1.4 trillion won earmarked for this year. (Yonhap)