The company planning to bring Formula One motor racing to South Korea said on Tuesday it has signed loan deals with local banks to help finance the construction of Asia’s longest racetrack.
The Korea Auto Valley Operation (KAVO) said in a statement it has secured agreements for loans totalling 198 billion won (159 million dollars), enough to cover about 46 percent of the cost of building and operating the track.
KAVO, capitalised at 60 billion won, is a joint venture between private firm M-Bridge Holdings and the provincial government of South Jeolla in the country’s southwest, where the track is located.
The province is providing 176 billion won from state coffers for the project to build the track already under construction in Yeongam county, 320 kilometres (200 miles) south of Seoul.
“With the contract, we have secured enough funds to accelerate preparations for the country’s first F1 race,” KAVO said in the statement.
KAVO officials say the track, capable of accommodating 135,000 spectators, will open in July next year. It will have a 5.6 kilometre (3.5 mile) circuit including a 1.2 kilometre straight stretch. KAVO plans to host its first race in 2010.
Source: The International News
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