Daewoo International signs $12m Myanmar e-government deal
May 23, 2005
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Daewoo International, Korea's leading global trading and investment company, said yesterday that its consortium with database management system provider KCOMS Ltd. won Myanmar's large-scale project to build a e-governance system over the coming year.
The consortium will establish a network infrastructure for the country's central government, link its 38 government ministries to the network and computerize its personnel management system.
"As we have secured the first part of Myanmar's grand e-governance plan, this will have a positive impact on our potential to win subsequent contracts in the country and also enter other Southeast Asian markets," Daewoo International President Lee Tae-yong said.
"This development will also serve as a crucial stimulus for the depressed domestic IT industry, by demonstrating that local IT technologies could make inroads into the potentially huge Southeast Asian market."
Daewoo International currently is leading an oil exploration project off Myanmar jointly with Korea Gas Corp. and two Indian companies. In January, the company, which holds 60 percent share in the project, said it found a 93-meter gas layer.
The company is also part of a Korea National Oil Corp.-led gas field development project in Vietnam as well as an LGN project in Oman, also led by KNOC.
On the back of stable growth in overseas sales and thriving energy business, the company's 2004 sales and operating profit rose 21.5 percent and 23.1 percent respectively over the previous year to 5.01 trillion won and 96 billion won.
Daewoo International shares have risen more than 32 percent this year, reaching 13,500 won at Friday's market close.
Daewoo International is a former unit of now-defunct Daewoo Group, which collapsed under a mountain of debt after the 1997-98 Asian financial crisis. The company graduated from a debt workout program in 2003 and has been making steady improvement.