Korean builders to spend $500,000 in Libyan aid

Korea’s 16 construction firms on Tuesday unveiled a plan to provide $500,000 worth of humanitarian aid to Libya’s new leaders, joining the government’s efforts to step up economic and diplomatic ties.

The Ministry of Land, Transport and Maritime Affairs named Hyundai Engineering & Construction and Daewoo Engineering & Construction among the participants but said it could not reveal the full list for security reasons. The builders have their projects on hold across the North African country, where a six-month civil war is nearing an end.

“The companies voluntarily decided to provide assistance for the National Transitional Council,” the ministry said in a statement. “Details involving the list of items and delivery date are to be finalized through a consultation with the NTC.”

The announcement comes a week after the Korean government’s decision to offer $1 million in cash to back the NTC for post-war recovery.

Korea already gave another $1 million upon a call from the cash-strapped rebels in exchange for the speedy resumption of the builders’ work there.

The ministry said it will selectively allow some company officials to travel to Libya, which has been banned since March.

Prior to the February uprising, 21 Korean firms had been working on various construction projects for power plants, electric cables, hotels and residential complexes.

Their combined orders are valued at $36.6 billion as of July, of which a backlog amounts to $7.4 billion, according to the ministry.

Forecasting a post-war construction boom, the government plans to allocate nearly 1.9 billion to fund companies venturing into the Libyan market next year, which is estimated at $120 billion.

By Shin Hyon-hee (heeshin@heraldcorp.com)