South Korea’s finance ministry said Wednesday it plans to provide a low-interest loan to support El Salvador’s road construction project under ties with a Central American development bank.
Under the plan, South Korea will provide US$210 million to the project via the Economic Development Cooperation Fund (EDCF), with the Central American Bank for Economic Integration also offering $200 million.
The project centers on expanding a route connecting the capital city of San Salvador and the western part of the country.
South Korea’s Dongbu Corp. won the contract to build the road in March, with Dohwa Engineering Co. being tapped as the consultant on the day, according to the Ministry of Economy and Finance.
South Korea launched the EDCF program in 1987 with the purpose of supporting economic and social infrastructure projects in developing countries.
The latest project marks the single largest loan provided to the region under the EDCF program.
“When completed, the project will improve efficiency and safety of passenger and cargo transportation, and contribute to the economic development of El Salvador,” the finance ministry said in a statement.
The finance ministry added it plans to expand ties with other development banks, such as the Inter-American Development Bank, to help South Korean firms win more projects in the region.
Source: Yonhap News Agency
