The Korean government will further increase cooperation on infrastructure with Central America, the Caribbean and South America.

On Jan. 19, the Ministry of Land, Infrastructure and Transport (MOLIT) signed a memorandum of understanding with the Central American Bank for Economic Integration (CABEI) to increase mutual cooperation on and joint investment in the development of smart cities, roads, transportation networks, housing and water supplies.

The CABEI is a multilateral financial institution founded in 1960 to promote economic integration and balanced economic and social development across Central America and adjacent regions.



Under the agreement, the Korean government will share its knowhow and experiences that it has gained over the years in terms of building infrastructure with nine Central American, South American and Caribbean governments: Guatemala, Nicaragua, Honduras, El Salvador, Costa Rica, Dominica, Panama, Belize and Colombia. This will include hosting a series of events, like seminars, workshops and road shows. The government has also vowed to seek more opportunities for co-investment by jointly carrying out feasibility research and mapping a master plan.

MOLIT currently has a number of projects underway across Central and South America. There's a joint project with its Nicaraguan counterpart for the construction of a bypass in Managua, the capital of Nicaragua, in an effort to release traffic congestion in the area. The ministry is also working on the expansion of intelligent transport system (ITS) infrastructure in Medellin, the economic hub of Colombia, with the aim of securing road safety across the city.

“The MOU signing with the CABEI, a body that funds infrastructure projects in Central America and adjacent regions, will, hopefully, further expand cooperation between Korea and the region,” said Minister Kang Ho-in.

In response, CABEI President Nick Rischbieth said, “We hope to work more closely with the Korean government to develop smart cities so as to solve problems involving water management, transportation and housing.”



Prior to the Jan. 19 meeting, the Export-Import Bank of Korea and the CABEI had penned an agreement to reinvigorate co-financing of the Economic Development Cooperation Fund (EDCF) on Jan. 18.

The agreement will allow the Export-Import Bank of Korea to be part of the evaluation process in allocating funds for the CABEI’s infrastructure projects that will be undertaken in Central America and elsewhere, as well as to share bid information.

“We’ve faced problems in proceeding with some projects, like some cancellations, especially on occasions when there was a change in government. However, thanks to this agreement, a cooperative channel has been set up with the CABEI that holds the ability to manage business safely,” said Export-Import Bank of Korea President Lee Duk-hoon. “We expect EDCF funds for strategic industries, like renewable energy, e-government and healthcare, to increase considerably over the years to come,” he added.

By Sohn JiAe
Korea.net Staff Writer
Photos: Ministry of Land, Infrastructure and Transport, the Export-Import Bank of Korea
jiae5853@korea.kr