1. EDCF Activities and Programs - Economic Development Cooperation Fund: Korea’s Main Foreign Aid Facility -
August, 2014
Nice to meet you.
I’m DongJin Kim, Development Cooperation Division, Deputy Director,
Ministry Of Stragety and Finance Republic.of Korea
It is my honor to introduce EDCF, one of the major Korea’s ODA programs, to you.
I hope this presentation could help you better understand Korea ODA programs.
Now, Let me introduce EDCF to you.

2. Korea’s ODA Governance Structure Ministry of Foreign Affairs
1. Korea’s ODA Overview
Korea’s ODA Governance Structure
Ministry of Foreign Affairs
Let’s look at the Korea’s ODA Governance Structure.
Korea’s ODA can be divided into 2 parts,
one is Grant and the other is concessional loan,
Ministry of Strategy and Finance(MOSF) administers concessional loans .
And, Korea Eximbank implements concessional loans.

3. Economic Development Cooperation Fund (EDCF)
2. Introduction to EDCF
Economic Development Cooperation Fund (EDCF)
Established in 1987, EDCF has 3 main purposes.
First is to help developing countries achieve industrial grow and economic stability.
Second is to share Korea’s development experience and knowledge.
Last is to Strengthen bilateral economic cooperation and encourage sound development in partner countries.

4. 2. Introduction to EDCF We think
EDCF should combine partner country’s self-reliance and
economic cooperation between two countries to maximize
economic development effectiveness
in developing countries.
In order to do so, EDCF is trying in many ways.
First, EDCF is increasing loan amount and supporting large scale-projects, which is expected to have high development effectiveness, to meet the demand for infrastructure in developing countries.
Second, EDCF is strengthening global cooperation through partnerships with partner countries, private sectors, and DAC member countries.
Third, EDCF is raising quality and convenience of ODA loan to enhance aid effectiveness.
Fourth, EDCF is improving Human Resources and managing system.

5. Increasing EDCF Volume Enhancing Effectiveness ; CPS
2. Introduction to EDCF
EDCF Policy Direction (4 pillars)
Increasing EDCF Volume
Enhancing Effectiveness ; CPS
Commitment(’17e) : 1,750bn Won
Disbursement(’17e) : 1,200bn Won
Increase aid effectiveness by CPS
(Country Partnership Strategy)
Co-financing with MDBs
(World Bank, ADB, etc)
Green Growth
Catalyzing Private Investment
Next, I want to look into 4 EDCF policy directions,
(increasing EDCF volume, enhancing effectiveness, green growth, and catalyzing private investment)
First direction is to increase the volume of ODA loan.
According to the 5-year EDCF plan, EDCF will increase its commitment up to 1,750 billion Won (equivalent to 1.6Bn dollars) and disbursement to 1,200 billion Won (equivalent to 1.1Bn dollars) by 2017.
The second direction is to enhance aid effectiveness through CPS,
Regional diversification and co-financing with MDBs. CPS is 5-year ODA policy document that reflects partner country’s ownership and emphasizes sustainable development. Besides, EDCF will strengthen cooperation with MDBs like World Bank, ADB and so on.
The third direction is green growth.
Under low-carbon green growth as a national vision,
EDCF's commitment in green projects accounted for 42% of its total commitment in 2013.
Green projects refer to environment-friendly such as renewable energy, water resource management, and waste disposal.
EDCF is applying preferential terms and conditions to these kinds of projects.
The fourth direction is to catalyze private investment. In developing countries, the demand for development financial resources is becoming various more and more, from traditional ODA to private investment.
In respond to these changes, EDCF adopted Public-Private Partnership (PPP) and Guarantee program as new supporting tools.
Advantages in Interest rate &
Repayment / Grace Period
Public-Private Partnership Loan
with favorable Condition
Guarantee to Commercial Lender

6. 2. Introduction to EDCF
EDCF has supported 311 projects in 52 countries (the end of 2013, accumulated)
Commitment
(As of December 31,2013)
KRW 10.1 Tril.
EDCF
Volume
Disbursement
KRW 4.4 Tril.
Withdraw
KRW 0.6 Tril.
Loan Balance
KRW 3.8 Tril
12,794
6,148
(unit : KRW 100 bil.)
Commitment
Disbursement
Annual
EDCF
Record
Then Let's see the EDCF’s ODA records.
Until last year,
EDCF had supported 311 projects in 52 countries.
The commitment amount was more than 10 trillion won,
and disbursement amount reached 4.4 trillion won.
And last year,
the commitment amount was 1,280 billion Won,
disbursement amount was 615 billion Won which is the largest ever.
( 1 USD ≈ 1,100 KRW )

7. EDCF Commitment by Region (the end of 2013, accumulated)
2. Introduction to EDCF
EDCF Commitment by Region (the end of 2013, accumulated)
Mainly focus on Asia, expanding its assistance into Africa and the other countries as a regional diversification strategy. .
In commitment by region,
Asia has the highest portion, 65.4%, then Africa 21.3% and Latin-America 6.3% last year.
So far, we mainly focused on Asia where the demand for development is relatively high.
But EDCF tends to expand its ODA for Africa, Latin-America and other countries,
following regional diversification strategy.

8. EDCF Commitment by Sector (the end of 2013, accumulated)
2. Introduction to EDCF
EDCF Commitment by Sector (the end of 2013, accumulated)
Economic infrastructure(Transportation, water management, energy, etc) and Social infrastructure projects continued.
Looking at the commitment by sector,
you can see the Transportation is the highest, 32.3%,
water supply and sanitation, 17.5%,
and public health, 10.9%.
Although we support the more to economic infrastructure that leads to the economic growth
(for example, transportation, water supply and sanitation, energy and etc.),
Social infrastructure (like education and public health) also occupied considerable proportion.

9. Project Cycle 4. EDCF Project Cycle 2. Project Preparation
& Loan Request
3. Appraisal
4. Pledge(commitment),
A/G, A/R (F/A)
& Loan Agreement
5. Project Implementation
(Employment of Consultants,
Procurement, Disbursement)
6. Monitoring
& Evaluation
1. CPS,
Program Mission
& Policy Dialogue
Project
Cycle
Next, Let's see the EDCF project cycle.
Step 1, identify development priorities and candidate projects through CPS, Program Mission and Policy Dialogue.
Step 2, prepare for project implementation by carrying out research & F/S, then receive loan requests from partner countries.
Step 3, approve a specific project after thorough project appraisal including local research.
Step 4, send out pledge to partner country then make a Agreement and Arrangement between the Governments, and Loan Agreement between EDCF and partner countries’ Governments.
Step 5, select the consultant and execute Procurement & Disbursement.
Last step 6, monitor the project process, and practice evaluation after project completion.
The result of monitoring and evaluation is reflected in Step 1 (CPS) and Step 2 (Project Preparation).

10. I hope EDCF would be one of the foundation stones
for economic development of Cambodia

11. EDCF Operation in Cambodia

12. Cumulative EDCF Loan Amount in Cambodia
1. EDCF Operation in Cambodia
Cumulative EDCF Loan Amount in Cambodia
16 projects, U$521.9m (from 2001 to 2014)
- 6th largest country in EDCF Support (5.4%)
< EDCF Operations by sector >
(US million)
Sector
Transportation
Water Resource
ICT
Sewage Treatment
Education
Total
Amount
284.5
128.7
51.0
30.0
27.7
521.9
Projects 8 4 2 1 16
Percentage
54.5%
24.7%
9.8%
5.7%
5.3%
100.0%
The economic cooperation and the bilateral relationships between Korea and Cambodia has significantly strengthened in recent years.
The Korean government has placed Cambodia as one of the top priority countries for EDCF and has provided 521.9million US dollars in 16 projects through EDCF commitments.
This figure accounts for 5.4 percent of the total EDCF commitments volume, positioning Cambodia as the sixth largest EDCF recipient among 51 countries.
As for the sector distribution of EDCF support, EDCF has been particularly concentrated on economic and social infrastructure such as transportation, water supplies, as they are essential for the national development of Cambodia.

13. EDCF Projects in Cambodia
1. EDCF Operation in Cambodia
EDCF Projects in Cambodia
(US million)
Project
Loan Amount
Approval Year
Capacity Expansion of National Government Administration System
20.0
2001
National Cambodia-Korea Vocational Training School
27.7
2002
Kampot - Trapang Ropaou Road Rehabilitation
17.1
2003
Krang Ponley Water Resources Development
26.7
2005
Provincial Administration Information System and National Information Infrastructure
31.0
2006
National Road No.3 Rehabilitation Project Phase II
36.9
Construction of Siem Reap Sewerage System and Improvement of Siem Reap River
30.0
2008
Improvement of National Road No. 31 and 33, Provincial Road No. 117 and Kampot Bypass
Through EDCF loan procedure, the Korean government supported 521million US dollars in 16 projects from 2001 to 2014.
Currently, we committed 2 EDCF projects, “National Road No. 2 and No. 22 Improvement“ and “ Rural Roads Improvement Project II” with in total of 97.1 million dollars commitments.

14. EDCF Projects in Cambodia
1. EDCF Operation in Cambodia
EDCF Projects in Cambodia
(US million)
Project
Loan Amount
Approval Year
GMS Cambodia Northwest Provincial Road Improvement
29.9
2009
Monkol Borey Dam Development
18.7
2010
Rural Roads Improvement
21.0
Improvement of National Road No.21
52.5
2011
Sala Ta Orn Dam Development
36.6
2012
Dauntri Dam Development
46.7
2013
National Road No.2 and No.22 Improvement
56.1
2014
Rural Roads Improvement Project II
41.0

15. EDCF Performance in Asian Countries Cumulative Performance by 2013
1. EDCF Operation in Cambodia
EDCF Performance in Asian Countries
(US million)
Countries
Ranking
in EDCF
Cumulative Performance by 2013
Projects
Commitments
Vietnam 1 48
1,886
Philippines 2 19
742
Indonesia 4
569
Cambodia 6 14
425
Lao P.D.R 17 9
161
Mongolia 24
139
Myanmar 11 8
241
Papua New Guinea 52
China 12 22
236
Total
150
4,416
Among the 51 EDCF recipient countries, Cambodia ranked as the sixth largest.

16. Framework Arrangement
1. EDCF Operation in Cambodia
Framework Arrangement
2013~2016 Framework Arrangement Amount : 200 million dollars
- Remainig Amount : 56 million dollars
<Pipeline Project>
(US million)
Projects
Loan Request
Amount
Status
Improvement of National Road N.48 Project
67.4
Received Loan Request ,
Completed F/S
Construction of Siem Reap Sewerage System and Improvement of Siem Reap River Project II
9.0
Received Loan Request
Construction of Phnom Penh Ring Road Project
45.0
Development of Integrated Agriculture and Rural Development Project
35.0
Received Project Preparation(F/S) Request
Considering the increasing demands of development cooperation between the two countries, the Framework Arrangement amounting to 200 million dollars for the period between 2013 and 2016 was concluded in 2013.
As of today, the remaing amount of F/A is 56 million dollars, and in this reason, it is necessary to reset the F/A commitment amount for the future.
By expanding the F/A commitment amount, EDCF can continue to support many projects in Cambodia, corresponding well with the national development priorities.

17. Thank You! As mentioned earlier,
Presented by Ho Geun Lee
Knowledge Sharing Program Team Director,
Ministry Of Stragety and Finance,
Republic of Korea
As mentioned earlier,
EDCF is trying to improve Aid Effectiveness by diversifying supporting instruments, promoting private investment and all that stuff.
It would be appreciated if you could keep taking an interest in EDCF's efforts and activities.
Thank you very much for paying attention to my presentation. 17