The infrastructure ministry plans to triple the amount of money banks must guarantee the government when funding major public works projects in a move that is likely to realign the construction industry, sources said Saturday.
The Land, Infrastructure and Transport Ministry will officially decide to uniformly raise banks' "performance guarantee" from the current 10 percent to 30 percent of the total contract amount -- regardless of a contractor's financial condition -- in early October, the sources said.
The measure is expected to accelerate realignment in the construction industry by compelling major banks to decide whether to support financially ailing contractors.
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