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Daewoo E&C breaks ground for USD 2.5 billion project in Vietnam
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Friday, 16 Nov 2012

Yonhap reported that Daewoo Engineering & Construction Co, a major South Korean builder, has broken ground for a USD 2.5 billion project to build a new city in Vietnam.

The groundbreaking ceremony came 16 years after the builder first offered its proposal to build residential complex and develop plots of land to be used for commercial, cultural and government buildings in 2 million square meters in Hanoi.

The massive project was suspended in 1999 when Daewoo Group, once South Korea's second-largest conglomerate, collapsed under the weight of USD 80 billion in debt in the wake of the Asian financial crisis.

The builder, a former subsidiary of the now defunct Daewoo Group, was taken over by the state run Korea Development Bank in 2010.

According to Daewoo E&C, Vietnam approved the project in 2006, putting the long stalled project back on track.

THT Development Co, Daewoo E&C's wholly owned Vietnam unit, will take charge of the project, which is scheduled to be partly financed by project finance arrangements with Korea Development Bank and other local financial companies.

A Daewoo E&C official declined to give further details on project finance arrangements.

Source - Yonhap News


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