South Korea, CABEI to set up CenAm infra fund

South Korea's strategy and finance ministry and the Central American Bank for Economic Integration (CABEI) signed an agreement to promote infrastructure projects in Central America, the bank said in a statement.

South Korea will provide US$100mn to set up a joint fund with CABEI, which will also provide US$100mn, according to state-owned Korean news agency Yonhap.

The fund will help Central America expand its existing infrastructure in the areas of sanitation, renewable energy and e-government.

The agreement also involves technical assistance and knowledge sharing based on the expertise and technology of Korean firms.

According to the Korean ministry, the agreement will also help some of the country's firms to enter the Central American market.

MORE COOPERATION

The South Korean land, infrastructure and transport ministry said it will sign a MoU with CABEI to promote mutual cooperation in infrastructure development for the Central American region, Yonhap reported.

The cooperation will take place in the form of seminars and workshops to promote knowledge and experience sharing in areas such as intelligent cities, road projects, transport, housing and water services. There could also be a joint investigation on the feasibility of establishing a master plan for building infrastructure in Central America, according to the report.

In November, South Korean officials met with representatives from El Salvador, Honduras, Nicaragua, Costa Rica, Guatemala and Panama to finalize a free trade agreement, which is expected to come into effect at the end of this year. The Asian country has also provided a number of water and sanitation loans to Central American nations, including Nicaragua.