On the 10th, the creditor meeting of Taeyoung Construction was held at the Industrial Bank of Korea headquarters in Yeouido, Seoul. Photo by Younghan Heo younghan@
On the 23rd, the Korea Development Bank (KDB) announced that it has been selected as the preferred financial arranger for the 'Pyeongtaek-si Tongbok Public Sewage Treatment Plant Modernization Project' (jointly arranged with KDB Infrastructure Asset Management).
This project involves relocating and modernizing the aging public sewage treatment facilities located in Pyeongtaek-si. The Hanwha consortium is responsible for project implementation, with construction starting in 2024 and completion targeted for 2027.
As an environmental private investment project with a total investment of 240 billion KRW (based on the implementation agreement), it is conducted under a profit-sharing (BTO-a) model, making it a safe asset. Market interest is expected to be very high, supported by the increasing preference of domestic financial institutions for ESG (Environmental, Social, and Governance) projects. The profit-sharing model involves the government sharing risks up to the minimum operating costs of the project and sharing any excess profits generated.
A KDB official stated, “As a policy financial institution, we will do our best to successfully carry out the project based on our experience with large-scale SOC projects and expertise in green finance,” adding, “We aim to finalize the financial agreement within this year.”
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