Export-Import Bank Provides $1.2 Billion Financing for UAE Subsea Power Transmission Project

[Asia Economy Reporter Bu Aeri] The Export-Import Bank of Korea announced on the 25th that it will support $1.2 billion (approximately 1.7076 trillion KRW) through project finance (PF) for the construction and operation of an ultra-high voltage direct current (UHVDC) submarine transmission network project in the United Arab Emirates (UAE).

This project, involving Korea Electric Power Corporation (KEPCO) and Samsung C&T, aims to supply eco-friendly power to offshore oil and gas facilities in Abu Dhabi by constructing and operating submarine transmission lines and substations. It is a mega infrastructure project worth a total of 5.4 trillion KRW and represents the first submarine UHVDC transmission network project by Korean companies in the Middle East and North Africa region.

The project was commissioned by Abu Dhabi National Oil Company (ADNOC) and the state-owned energy company TAQA in line with the UAE's '2050 Carbon Neutral Strategy.' By replacing the currently operating aging gas power facilities with eco-friendly power, a carbon reduction effect of over 30% is expected.

The Export-Import Bank of Korea expressed its intention to provide active financial support from the bidding stage. To support this project, it will provide comprehensive financial services including PF financing of $1.2 billion, which accounts for 37.4% of the total borrowings, and construction performance guarantees worth $680 million.

KEPCO formed a business consortium with Japan's Kyushu Electric Power and France's EDF in December last year and won the project rights. Samsung C&T, together with Belgium's Jan De Nul, is responsible for design, procurement, and construction.

With the completion of financial arrangements, construction will begin immediately, and operation is scheduled to start by the end of 2025.

An official from the Export-Import Bank of Korea stated, "This project is a case where power generation public enterprises, construction companies, and financial institutions cooperated to pioneer the first submarine UHVDC transmission network project in the Middle East and North Africa region," adding, "We expect it to serve as a foothold for overseas expansion to secure new growth engines for our companies and to win follow-up projects."

This content was produced with the assistance of AI translation services.