콘텐츠 바로가기
로그인
컨텐츠
  • HOME
  • SEARCH
PLUS Text Size MINUS RESET
FACEBOOK TWITTER Linked In

Category Open

Development Overview

tutorial

Overview of Korea’s development experience

home

Development Overview
Official Aid Public Administration

Print

Public Administration

EDCF loans: Distributions by education, health, water supply and sanitation

1. Overview

The EDCF has provided assistance to the building of economic infrastructures in areas such as transport & storage, energy, and communications since its establishment. In line with the international community’s commitment to the Millennium Development Goals, support was also given to social infrastructures in areas such as water supply & sanitation, education, and public health. As for loan commitments, transport & storage accounted for 29.0%, followed by water supply & sanitation (14.7%), and education (9.7%). In terms of loan disbursement, the EDCF contributed to the economic development of partner countries and helped them meet the basic human needs by supporting sectors of water supply & sanitation (10.9%) and so on.
In the future, the EDCF will allocate much of its financial resources to economic infrastructure projects to support the economic growth of partner countries. Financial assistance to social infrastructures will also be expanded.
 
2. Education
 
Characteristics
The EDCF’s assistance to education generally consists of construction, provision of equipment, and educational programs. The successful execution of the projects is possible only when each part is organically connected. Details of the three parts are as follows;

First, the construction part involves the building of vocational training centers and accessory facilities. Construction in the area of education includes the building of pipes, network lines, gas lines, and ventilation systems. Thorough preparation at the stage of design and construction is necessary to make the construction appropriate to the educational purpose.

Second, the provision of equipments concerns the supplement of educational equipments proper to the teaching subjects and industrial structure of the recipient country, with instructions on how to use the equipments. It is important to select proper equipments and to provide proper measures during the warranty period.

Third, educational programs include assistance to the development of curriculum and teaching materials, invitation of trainees, and dispatch of experts. Building long-term education programs is the most important part to enable the sustainability of education projects.

Projects in the education sector will help recipient countries achieve economic development by reducing the level of unemployment rate and fostering the creation of a skilled and educated labor force.
 
Assistance Volume
The EDCF’s support for education projects started in 1991 with the Mobile Training Unit’s Development Project in Indonesia. As of 2007, the amount of loan commitments to the education sector reached KRW 307.7 billion, representing 9.7% of the EDCF’s total loan commitments.
The EDCF has supported 15 projects in the education sector. Regional distribution shows that 41.3% of total EDCF loan commitments in this sector have been approved to Asia, followed by the CIS (35.1%), Africa (12.4%), and Latin America (11.2%).

Since 2006, 7 projects were approved in this sector, reflecting developing countries’ enhanced attention and awareness towards education, especially in Korea’s advanced vocational training system. The EDCF’s initial disbursement in the education sector was made in 1993. The disbursement amount increased steadily and accounts for 7.7% of total EDCF loan disbursements as of 2007.
 
Prospects
Recipient countries of the EDCF understand the importance of developing human resources and training technical experts to solve unemployment, reduce poverty, and develop national economy. However, the reality is unsatisfactory due to the high costs and long period of time required in executing education projects. Developing countries have a great interest in vocational training since they realize that national development significantly depends on the development of talented human resources.

Educational Project
[Picture 2-1] Educational Project
 
It is natural that many countries are showing interest in Korea’s vocational training system which greatly contributed to the economic development of Korea under the assistance of its government.
Accordingly, demand for EDCF support in education projects is increasing in areas such as vocational training policies and systems development, national education system, and overseas expansion of work force. Also, considering the growing interest in Korea’s IT education and training system, EDCF’s support in this sector is expected to expand further.

EDCF Projects
[Table 2-1] EDCF Projects

Source:
The Export-Import Bank of Korea. 2008. EDCF Your development partner 1987-2007, History book. Seoul.

 

##PAGE##

3. Health
 
Characteristics
Health is one of the most critical sectors affecting the living conditions because it is deeply related to basic human needs. Accordingly, the global society has given special attention to this sector. Sharing this responsibility as a member of the international community, the Korean government also endeavors to support health-related projects of developing countries. EDCF-supported projects in the health sector are classified into two types: medical instruments supply (equipment loan), and hospital & vaccine production facility construction (development project loan). It is noteworthy that the portion of the equipment loan projects in this sector is higher than that of other sectors as 8 out of the total 15 projects have been supported through equipment loans. Since Korea has strong competitiveness in medical instruments, the demand for Korean medical instruments from developing countries is increasing. However, a one-time supply of medical instruments is not sufficient for the recipient country to cultivate its capacity to provide advanced medical services. Hence, to increase aid effectiveness in the long term, providing packaged support that integrates hospital construction, in addition to the supply of medical instruments, efficient medical system transfer, and training programs is essential.

Health projects
[Picture 3-1] Health projects

 
Assistance Volume
Since the EDCF’s first loan commitment to the sector in 1992, the amount of loan commitments to the health sector reached KRW 289.4 billion as of 2007, representing 9.1% of the EDCF’s total loan commitments.
The amount of disbursement also increased continuously, accounting for 10.1% of total EDCF loan disbursements.
 
Prospects
In the future, as life expectancy increases and the demand for highly qualified medical services rises in developing countries, the portion of support in the health sector out of all EDCF projects is expected to increase dramatically.
 
EDCF Project
[Table 3-2] EDCF  Project
 
4. Water supply & sanitation
 
Characteristics
Well-established water supply & sanitation systems elevate the living standards of the recipient country as the sector is directly linked to the very essentials of one’s everyday life. Korea is currently concentrating its support on the construction of water supply and drainage system, and the disposal of wastes.
 
A. Water Supply and Drainage
The EDCF’s support for water supply and drainage projects aims to supply the recipient country with industrial and daily life potable water. Such projects can be divided into water supply projects that purify and collect fresh water, and drainage projects that mainly involve the construction of waste water treatment systems. Korea’s design and construction capability in the water supply sector is considered to be highly competitive in terms of technology and price, and its support in this area is expected to expand further. Korea is also highly noted for its excellent waste water treatment technology. Jordan expressed great satisfaction towards the modern facilities and high technology of the Wadi Es Sir Waste Water Collect-ion and Treatment Project (Phase I) which was the EDCF’s very first project of its kind. Since then, Jordan has exclusively asked the EDCF to support its wastewater business and all four of the EDCF projects currently approved are in the same business category.

Water supply and sanitation
[Picture 4-1] Water supply and sanitation
 
B. Disposal of Wastes
The EDCF’s support for waste disposal projects aims to improve the region’s environment through the construction of an integrated system for the removal, transportation, and disposal of solid wastes. The EDCF has supported four waste matter disposal projects and the assistance for this area accounts for 13.6% of all EDCF’s water resource & sanitation sector assistance. In total, KRW 63.9 billion has been committed to these projects and a steady number of approved projects are witnessed every year.

Viet Nam showed great confidence in Korea’s technological know-how in the disposal of solid waste and three projects have been approved and are being executed. Discussions continue to take place on the prospects of future EDCF assistance in Viet Nam’s solid waste disposal business.
 
Assistance Volume
EDCF loan commitments to the water supply & sanitation sector is continuously increasing. As of 2007, the amount of loan commitments in the sector reached KRW 468.5 billion, representing 14.7% of the EDCF’s total loan commitments. The commitment volume in this area ranks second following the EDCF’s assistance in the transport & storage sector.
Since the EDCF’s initial disbursement in the water supply & sanitation sector in 1993, disbursements in this sector increased continuously, and presently accounts for 10.9% of total EDCF loan disbursements, ranking fourth among all sectors supported by the EDCF.

EDCF Project
[Table 4-2] EDCF Project
 
Prospects
The development of the water supply & sanitation sector will continue to be an essential sector of development priority for most developing nations as it directly relates to the quality of life of their citizens. Therefore, the EDCF’s support in this sector is expected to expand further in the future.

Source: The Export-Import Bank of Korea. 2008. EDCF Your development partner 1987-2007, History book. Seoul.