Global Infra Fund accepts applications till August 19 this year in its phase three assistance program
Seed funds necessary for overseas investment development projects to be funded by MOLIT, the ceiling of which is set at KRW 500M
The Ministry of Land, Infrastructure and Transport of the Republic of Korea (Minister: H.E. Mr. Suh Seoung-hwan) announced that it will accept applications for a phase three Global Infra Fund between July 19 and August 19, 2013. The GIF is an ambitious project initiated by MOLIT that aims to provide support for exploring overseas investment development projects.
Set at KRW 500 million as its maximum fund provision amount, the GIF is an effective tool in discovering scores of overseas investment development projects, as its financial assistance goes to funding a feasibility study or a prefeasibility study of a given project that shows ample economic potential. Feasibility studies, by nature, cost a fortune to be carried out, and it is one of the main reasons that not many companies are willing to take the risk of developing a potentially promising project overseas, owing to these inherent high risks.
With an aid of the GIF provided by MOLIT, interested Korean builders now could take bold steps in developing underexplored overseas investment development projects markets.
Started in 2009, the GIF has provided funds for 21 feasibility studies as of the end of 2012, and this year alone, through the phase one and two programs, the GIF helped make 6 study projects worth KRW 1.5 billion undertaken.
Applications will be accepted based on different categories of industries and types of studies. By industries, there are roads, sewage systems, railways, water resources, urban development, power generation, and industrial plants. By types of studies, there are feasibility studies and prefeasibility studies.
Submitted applications will go through a strict evaluation process of the Committee for Promoting Overseas Construction Projects under MOLIT. Once selected, the projects will be recommended for further endowment of fundings to multilateral development banks, World Bank, and Asia Development Bank. In addition, diplomatic support for promoting those projects initiated by MOLIT will also be provided.
A person related to the GIF at MOLIT commented, "Not only will it be useful for interested companies as it reduces initial risks at a beginning of a project overseas, but it will also be a great start for those companies once they are selected, because MOLIT will provide a maximum possible support to their projects by cooperating with multilateral development banks and other international entities with whom it would be possible to provide government-wide support for those projects as they progress down the road, gaining a boost to win more tenders overseas, no doubt."
For more information, please visit the website of MOLIT at www.molit.go.kr or that of the International Contractors Association of Korea at www.icak.or.kr.