Welcome to ECA Watch

Export credit agences provide government-backed loans, guarantees and insurance to corporations working internationally in some of the most volatile, controversial and damaging industries on the planet.

Shrouded in mystery, ECAs provide financial backing for risky projects that might never otherwise get off the ground. They are a major source of national debt in developing countries.

ECA Watch is a network of NGOs from around the world. We come together to campaign for ECA reform - better transparency, accountability, and respect for environmental standards and human rights.

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What's New August 2018

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Friends of the Earth warns against Trump's Ex-Im Bank nominee
  • European Ombudsman calls for greater transparency of export credit agencies
  • Ilisu Dam: Dutch NCP concludes first-ever OECD Guidelines case on cultural rights
  • ECAs in international politics - US and Germany vs Turkey
  • US, Australia and Japan to Invest in Asia to counter China
  • South Africa to co-chair Forum on China-Africa Cooperation (FOCAC) Summit
  • Indian Export Opportunities from US-China Trade Differences Need Export Credit Support
  • Trump’s sanctions halt trade credit insurers’ return to Iran
  • Danish ECA freezes new guarantees to Turkey over lira crisis
  • Adani's coal mining project in Australia may hinge on court
  • ECAs flock to finance huge Peruvian mine project
  • France's CIFAL ready to help Uzbekistan develop nuclear energy
  • Russian ECA financed weapons in Armenia risk escalation of hostilities
  • UKEF backs country’s largest export deal with Israel
  • Trinidadian form minister awaits Australian response re naval vessel purchase funded by EFIC

Friends of the Earth warns against Trump's Ex-Im Bank nominee

(Washington Examiner, Washington, 23 August 2018) The Senate Banking Committee on Thursday voted 25-0 in favor of Kimberly Reed to lead the U.S. Export-Import Bank, the U.S. export credit agency, which the group Friends of the Earth fears could be a move to subsidize fossil fuel projects around the world. The environmental group warns that billions of dollars in federal subsidies could be released once Trump's nominee is seated, as 13 fossil fuel projects are still pending at the bank. “There are serious concerns that Ex-Im under Reed will return to its past practice of supporting projects that damage the global climate, harm community health, violate human rights and hasten corruption,” said Kate DeAngelis, senior international policy analyst at Friends of the Earth, after the vote.

https://www.washingtonexaminer.com/policy/energy/friends-of-the-earth-warns-agai...


European Ombudsman calls for greater transparency of export credit agencies

(Bankwatch, Prague, 9 July 2018)  The European Ombudsman has sided with the civil society demanding the European Commission to improve its oversight of the EU Export Credit Agencies (ECAs). The decision upholds an earlier ruling that required the Commission to ensure better compliance of these financial institutions with the EU law.

https://bankwatch.org/blog/ombudsman-calls-for-greater-transparency-of-export-cr...


Ilisu Dam: Dutch NCP concludes first-ever OECD Guidelines case on cultural rights

(OECD Watch, Amsterdam, 20 August 2018) NCP finds company failed to do due diligence and breached the Guidelines at Turkey's Ilisu mega-dam. On 20 August 2018, the Dutch NCP released its final statement on the case of FIVAS et al v. Bresser, the first OECD Guidelines case filed on the subject of cultural rights as human rights. The statement determines Bresser “has not fully met the expectations and satisfied the due diligence criteria of the OECD Guidelines”. In July 2017, Fivas helped Turkish communities file a complaint with the Dutch NCP against Bresser, an SME that performs foundation relocation projects. The Ilisu Dam was the first ever project to have export credit guarantees from European governments withdrawn after the guarantees had already been agreed. ECA Watch members campaigned hard to make this happen.

https://mailchi.mp/7d9c602b92e3/case-alert-new-oecd-guidelines-complaint-against...


ECAs in international politics - US and Germany vs Turkey

(ECA Watch, Ottawa, 28 August 2018) When President Trump agreed to press Israel to release a Turkish prisoner in exchange for Turkey's release of an American Christian pastor, Israel complied but Turkey didn't, resulting in a crippling increase in US tarifs on Turkey, including threats of possible export credit sanctions. In a similar case in July 2018, a German journalist arrested in Turkey was released when Germany, Turkey’s biggest trading partner, lifted export credit guarantee sanctions implemented a year earlier to protest the arrests and the ongoing Turkish state of emergency (OHAL). When faced with the prospect of losing export credits and a project to update Turkey's German-made Leopard tanks, Erdoğan changed course and freed Die Welt correspondent DenizYücel without a trial. Turkey had originally asked the US release a Turkish banker convicted of helping Iran avoid US sanctions as well as to waive U.S. government fines totaling billions of dollars against Turkey's state owned Halkbank over violations of US sanctions on Iran.




US, Australia and Japan to Invest in Asia to counter China

(NASDAQ, New York, 3 August 2018) The United States, Japan and Australia are collaborating to form an alliance that will aim to finance infrastructure projects across Asia. The partnership is a move to lower China's influence on the Indo-Pacific region through the Chinese government's Belt and Road initiative. A 30 July joint statement by U.S., Australian and Japanese official investment, finance and export-credit bodies noted that: "The United States, Japan, and Australia have formed a trilateral partnership to mobilise investment in projects that drive economic growth, create opportunities, and foster a free, open, inclusive and prosperous Indo-Pacific."

https://www.nasdaq.com/help/contact-information.aspx


South Africa to co-chair Forum on China-Africa Cooperation (FOCAC) Summit

(Devdiscourse, Haryana India, 27 August 2018) President Cyril Ramaphosa is next week set to travel to Beijing, where he will co-chair the Forum on China-Africa Cooperation (FOCAC) Summit. The gathering is set to put infrastructure and industrial development at center stage. “These areas are aimed at addressing the three bottlenecks in Africa, as identified by China and Africa, which are hampering Africa’s development, namely, inadequate infrastructure; lack of professional and skilled personnel and a funding shortage. To facilitate the implementation of these measures, China announced the provision of US$60 billion for funding support, which includes US$5 billion for grants and zero-interest loans and US$35 billion for concessional loans and export credit and US$5 billion for Technical and Industrial Project Funding. To build the China-Africa comprehensive strategic and cooperative partnership, China committed to implementing 10 cooperation plans with Africa, namely in the areas of industrialization, agricultural modernization, infrastructure, financial services, green development, trade and investment facilitation, poverty reduction and public welfare, public health, people-to-people exchanges, and peace and security. To facilitate the implementation of these measures, China announced the provision of US$60 billion for funding support, which includes US$5 billion for grants and zero-interest loans and US$35 billion for concessional loans and export credit and US$5 billion for Technical and Industrial Project Funding.

https://www.devdiscourse.com/Article/137366-south-africa-to-co-chair-forum-on-ch...


Indian Export Opportunities from US-China Trade Differences Need Export Credit Support

(Business Standard, New Delhi, 7 August 2018) India can focus on numerous goods for expanding its exports to the US and China markets following the hike in duties by both countries on imports from each other, said the Confederation of Indian Industry (CII). With the US imposing additional duty of 25% on imports worth $34 billion from China, certain Indian products may become more competitive, according to CII. It was noted that Indian companies require better access to export credit to intensify the export effort.

https://www.business-standard.com/article/news-cm/us-china-trade-differences-to-...


Trump’s sanctions halt trade credit insurers’ return to Iran

(Global Trade Review, London, 18 August 2018) Two weeks after renewed US sanctions against Iran, it appears trade credit insurers are winding down the little business they had reinstated in the country since 2016. Arash Shahraini, board member and deputy CEO of the Export Guarantee Fund of Iran (EGFI) stated that "After the announcement of the US sanctions, all private credit insurers who had some interests in dealing with the US stopped their cover on Iran. Now as far as I know, only export credit agencies (ECAs) continue to give cover to Iran.” Technically speaking, cover cannot be cancelled retrospectively, so companies should be able to use the insurance they have already subscribed to in case of default due to the re-implementation of sanctions. Iranian companies that have made use of private insurance will now have to turn to other options, such as ECAs. “Right now, I am in the process of negotiations for some transactions and projects for getting cover from ECAs for Iranian projects and transactions,” noted Katayoon Valizadeh, a senior consultant in credit insurance and risk management in Tehran.

https://www.gtreview.com/news/mena/trumps-sanctions-halt-trade-credit-insurers-r...


Danish ECA freezes new guarantees to Turkey over lira crisis

(Global Trade Review, London, 15 August 2018) The Danish export credit agency EKF has frozen all new guarantees to Turkey, as concerns about the country’s economic health continue to mount. The Turkish lira has lost more than 45% of its value this year and continued its plunge this week amid a growing geopolitical storm between Turkey and the US.

https://www.gtreview.com/news/europe/danish-government-freezes-new-guarantees-to...


Adani's coal mining project in Australia may hinge on court

(Business Standard, New Delhi, 9 August 2018) For the Ahmedabad-headquartered Adani group, the fate of its ambitious coal mine-to-rail project in Australia could hinge on a court case filed by native owners of the land in question, near the Carmichael mine in the province of Queensland. Environment groups and others in opposition have alleged the current ruling party in Australia has helped Adani in getting regulations and clearances for the project, including possible EFIC support. Adani had signed a land agreement with the local authorities now being contested in court by native Wangan and Jagalingou land claimants. Wangan and Jagalingou (W&J) Traditional Owners in the area did not consent to the Carmichael mine. Since 2012, their claim is that group meetings rejected a Land Use Agreement with Adani four times, the latest in December 2017. Five members of the W&J Native Title filed case in the high court on behalf of the claim group in August 2017. Sources said Adani had not been able to tie up any financing for the coal project. Jeyakumar Janakraj, chief executive and country head, Adani Group Australia, told this publication last year that the company was in talks with leading global financers and export credit funds from China and Korea in this regard.

https://www.business-standard.com/article/companies/adani-s-rail-project-in-aust...


ECAs flock to finance huge Peruvian mine project

(Global Trade Review, London, 22 August 2018) Peruvian miner Minsur has secured US$900mn in project financing for its Mina Justa copper mine. The lenders are: BBVA Continental, BBVA, Banco de Crédito del Perú, Crédit Agricole, Export Development Canada (EDC), Export Finance and Insurance Corporation (EFIC, the Australian ECA), ING, KfW Ipex-Bank, Natixis, SG Americas Securities, Société Générale and the Export Import Bank of Korea (Kexim). Mina Justa is set to produce 100,000 tonnes of copper a year when it comes online in 2020. Total project cost is expected to run to US$1.77bn, with Minsur providing the rest of the capital. The mine will be located in the district of Marcona, in Nazca province, in the Ica region of Peru.

https://www.gtreview.com/news/americas/lenders-flock-to-huge-peruvian-project-fi...


France's CIFAL ready to help Uzbekistan develop nuclear energy

(Trend News Agency, Baku, 24 August 2018) French CIFAL company is ready to help Uzbekistan in the development of nuclear energy noting they are ready to provide their technological solutions and share experience to train specialists of Uzbekistan in the field of nuclear energy. CIFAL plans to support the Uzbekistan's Agency for the Development of Nuclear Energy "Uzatom" in the implementation of technical, commercial and financial negotiations with the Russian State Atomic Energy Corporation "Rosatom" and also take part in the solution of issues of financing of the project in coordination with the Uzbek and Russian sides. The Russian side proposes to build in Uzbekistan a station consisting of two modern blocks of pressurized-water reactors VVER-1200 of "3+" generation. The project for the construction of a similar station, which Rosatom is building in Bangladesh, is estimated at about $13 billion, of which $11.3 billion are provided by Russia as an officially supported export credit.

https://menafn.com/1097337844/French-CIFAL-ready-to-help-Uzbekistan-develop-nucl...


Russian ECA financed weapons in Armenia risk escalation of hostilities

(VESTNIK, Moscow, 13 August 2018) Arms supplies on credit are a usual practice. Almost all countries involved in the sphere of military-technical cooperation practice it. The reasons for this may be different, but usually they are of purely political nature: this is the way a country that provides a state export credit for the purchase of weapons produced in the same country indicates that the recipient country is considered as if not an ally, then a very close partner, friend, the Independent Military Review writes. That's who the Republic of Armenia (RA) was for Russia for a long time. Yerevan received both political and military support (including the Russian military base) and economic preferences from Moscow. The Kremlin's position on Nagorno-Karabakh was also quite clear. That is why no one was surprised when in 2015 the Russian Federation agreed to provide the RA with a $200 million loan to buy weapons. Last month, deliveries under this loan agreement, which entered into force in February 2016, were completed. In recent years, the balance of forces in the South Caucasus has been violated because of the growing military power of Azerbaijan, which threatened the resumption of the conflict in Nagorno-Karabakh. Arms supplies from Russia will help to slow down the escalation of the conflict, bringing the military advantage of one of the parties to an approximate equality. But not everyone is happy to see the military-technical cooperation of Moscow and Yerevan. According to a Worldwide Threats Assessment report of the director of US National Intelligence Daniel Coats, "both sides' reluctance to compromise, mounting domestic pressures, Azerbaijan's steady military modernization, and Armenia's acquisition of new Russian equipment sustain the risk of large-scale hostilities in 2018."

http://vestnikkavkaza.net/analysis/Russian-weapons-in-Armenia.html


UKEF backs country’s largest export deal with Israel

(Global Trade Review, London, 24 August 2018) UK Export Finance (UKEF), the country’s export credit agency, is providing a guarantee for a US$125mn loan from Citi to El Al Israel Airlines to finance their purchase of one Rolls-Royce-powered Boeing 787 aircraft. The deal is part of Rolls-Royce’s contract to supply engines for 16 such aircraft for the Israeli airline. According to UK international trade secretary Liam Fox, this contract is “the largest single export deal the UK has had with Israel, and a marker of the strength of the trade relationship between the two countries”. The announcement comes days after the UK government launched its new export strategy, which lays the foundation for how the government plans to support exporters in the years ahead.

https://www.gtreview.com/news/europe/ukef-backs-countrys-largest-export-deal-wit...


Trinidadian former minister awaits Australian response re naval vessel purchase funded by EFIC

(Trinidad & Tobago Newsday, Port of Spain, 15 August 2018) Former minister Devant Maharaj today said he is still waiting for a reply from the Australian government about concerns he has about alleged corruption in the procurement of two naval vessels for the Coast Guard. Maharaj told Newsday he sent correspondence to Australian Attorney General Christian Porter outlining his concerns by e-mail and a hard copy of his letter was delivered to the Australian High Commission in St Clair as well. Maharaj insisted six fast patrol boats acquired from Austalia under the former administration were not suited for TT's waters. Trinidad's National Security Minister Stuart Young said the purchase of 12 Damen naval vessels by the former government prior to the September 2015 general elections is now under international criminal investigation, and attacked Maharaj's allegations of corruption. Funding for the procurement of the vessels was to come through the Export Credit Agency of Australia.

https://newsday.co.tt/2018/08/15/devant-waits-for-australia/


What's New July 2018

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Dutch ECA ADSB issues complaint guidelines
  • European Ombudsman concludes the European Commission failed to carry out a human rights impact re ECAs
  • Report of the UNHCR Working Group on human rights, business enterprises and ECAs
  • Federal US Judge says Dakota Access developer can't sue BankTrack
  • Anti-Adani NSW protest outside EFIC office
  • Ex-Im Bank nominee fairs well in Senate hearing
  • Turkmenistan woos ECAs for transadriatic pipeline
  • World powers back Iran oil exports despite US sanctions threa
  • Qatar Is Said to Seek $4 Billion in ECA support for Typhoon Fighter Jets
  • Public/ECA Finance for African Energy Focuses on Fossil Fuels
  • Russian ECA Financed Bangladesh Reactor is Safe Against Natural Disasters
  • Exxon expands Mozambique LNG project to cut costs ahead of bank tal
  • ECAs to revive defunct Uganda Airline

Dutch ECA ADSB issues complaint guidelines

(Both Ends, Amsterdam, 28 June 2018) Following years of advocating with the Dutch export credit agency Atradius Dutch State Business (ADSB) to establish a complaints mechanism, and following active discussions between a number of Dutch NGOs and the Dutch ECA in recent months, ADSB has published new “Guidelines for submitting a complaint”. While this does not yet compare to an independent complaints mechanism, it at least offers an additional venue for communities affected by ADSB supported projects to make eventual complaints known to the Dutch ECA, and hopefully to start a process to resolve issues raised. This comes in addition to the venue of filing a complaint under the OECD Guidelines for MNEs to the Dutch NCP. We welcome these Guidelines as an important step forward. As always the usefulness of the new procedure will have to be proven following the submission of real complaints from the ground.




European Ombudsman concludes the European Commission failed to carry out a human rights impact re ECAs

(European Ombudsman, Brussels, 17 July 2018) Following a complaint launched by ECA Watch members, the European Ombudsman has determined that the European Commission wrongly decided not to carry out a human rights impact assessment before agreeing to the 2015 Sector Understanding on Export Credits for coal-fired electricity generation projects, negotiated in the context of the OECD Arrangement on Officially Supported Export Credits. The Ombudsman found maladministration on the part of the Commission for having taken this decision in the absence of a thorough analysis of whether it was likely there would be any significant economic, social or environmental impacts, including on human rights. The Arrangement and its subsidiary Sector Understandings are a loosely monitored “Gentlemen’s Agreement” among participating OECD members, which provide “a framework for the orderly use of officially supported export credits”. This is a welcome decision and follows the Ombudsman's recent demand for greater transparency on the part of European ECAs.

https://www.ombudsman.europa.eu/en/recommendation/en/99655


Report of the UNHCR Working Group on human rights, business enterprises and ECAs

(UN Human Rights Council, Geneva, 2 May 2018) The report, prepared pursuant to Council resolutions 17/4 and 35/7 for discussion at its 18 June to 6 July 2018 meetings, examines the duty of States to protect against human rights abuses by business enterprises, including export credit agencies, to whom they provide support for trade and investment promotion. It explores how States can incentivize business respect for human rights in this context, including through withdrawal of trade and investment support in situations where businesses fail to meet their corporate responsibility to respect human rights. Nine of the 20 pages cover examples and gaps in good ECA practices and moving beyond OECD efforts to avoid race to the bottom approaches. It notes that current National [human rights] Action Plans do not include discussions of the ways in which export credit agencies address and enable access to remedy by rights holders who are harmed in connection with a project or transaction funded or supported by an export credit agency.

http://daccess-ods.un.org/access.nsf/Get?Open&DS=A/HRC/38/48&Lang=E


Federal US Judge says Dakota Access developer can't sue BankTrack

(Tampa Bay Times, Bismark, 26 July 2018) A federal judge has ruled that the developer of the Dakota Access oil pipeline has no claim under federal racketeering law for damages against a Dutch environmental group that urged banks not to finance the $3.8 billion project. U.S. District Judge Billy Roy Wilson dismissed Netherlands-based BankTrack as a defendant in a lawsuit that Texas-based Energy Transfer Partners filed in August against that group, Greenpeace and Earth First. In separate rulings this week, he also cast doubt on whether the lawsuit will succeed against the other two groups. Wilson said the lawsuit "vaguely attempts" to connect BankTrack to acts of radical ecoterrorism, but he concluded that "None of BankTrack's actions promoted, assisted or condoned violent criminal conduct,". BankTrack Director Johan Frijns in a statement said the judge's ruling "confirms that this type of advocacy work is legitimate."

https://www.tampabay.com/judge-says-dakota-access-developer-cant-sue-banktrack-a...


Anti-Adani NSW protest outside EFIC office

(The Australian, Sydney, 29 June 2018) Protesters worried about potential taxpayer funding of Adani's mega-mine in central Queensland have picketed the Sydney offices of Australia's export credit agency. About 40 Frontline Action on Coal activists on Friday demanded to meet with the boss of the Export Finance and Investment Corporation. The group claim federal Trade Minister Steven Ciobo has directed EFIC to assess "putting public money" behind the Indian mining giant's proposed thermal coalmine. They say the Adani coalmine would fail EFIC's three investment rules requiring projects to be commercially viable, in the national interest and in the public interest. There were more than 20 similar protests held across Australia on Friday and Saturday.

https://www.theaustralian.com.au/news/latest-news/antiadani-nsw-protest-outside-...


Ex-Im Bank nominee fairs well in Senate hearing

(Space News, Washington, 19 July 2018) Kimberly Reed, President Trump’s latest nominee to chair the Export-Import Bank of the United States, received a warm reception during a July 19 Senate hearing, indicating a much stronger chance for her confirmation than Trump’s initial pick, Scott Garrett. Members of the Senate Banking, Housing and Urban Affairs Committee spent the majority of the two-and-a-half-hour hearing questioning another Trump nominee, Kathleen Laura Kraninger, for director of the U.S. Bureau of Consumer Financial Protection, allotting little time on Reed. Reed’s approval would bring Ex-Im Bank closer to the minimum three full board members needed to approve export credit transactions over $10 million,

https://spacenews.com/ex-im-bank-nominee-fairs-well-in-senate-hearing/


Turkmenistan woos ECAs for transadriatic pipeline

(Azernews, New York, 28 July 2018) A presentation titled “Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline: A new energy Great Silk Road to provide access to reliable, sustainable and modern energy for all” was organized at the headquarters of the United Nations Development Program (UNDP) in New York with the assistance of the diplomatic missions of Afghanistan, Pakistan and India. “Turkmenistan views this gas pipeline as a new energy Silk Road that will connect the regions of Central Asia and South Asia," said Aksoltan Atayeva, Turkmen ambassador to the UN. A road show on financing issues is planned in July to promote the TAPI gas pipeline project and hold negotiations. Several meetings have already been held with a number of export credit agencies (including SACE, Hermes and ECIO), which expressed support for the project. In other news, the TAP project has so far secured €1.5 ($1.74) billion in loans from the European Investment Bank (EIB), and further contributions from the export credit agencies of France, Germany and Italy are currently under consideration. The pipeline is owned by BP (20%), SOCAR (20%), Snam (20%), Fluxys (19%), Enagas (16%) and Axpo (5%).

https://www.azernews.az/region/135140.html


World powers back Iran oil exports despite US sanctions threats

(AFP, Vienna, 6 July 2018) Iran’s remaining partners in the 2015 nuclear deal vowed Friday to keep the energy exporter plugged into the global economy despite the US withdrawal and sanctions threat. Britain, France and Germany along with Russia and China met with Iran in Vienna to offer economic benefits and assurances that would lessen the blow of sweeping US sanctions announced by Trump. Although there were no concrete pledges or deadlines, they vowed efforts to keep open financial channels with Iran, promote export credit cover and maintain open air, sea and overland transport links.

https://www.timesofisrael.com/world-powers-back-iran-oil-exports-despite-us-sanc...


Qatar Is Said to Seek $4 Billion in ECA support for Typhoon Fighter Jets

(Bloomberg, Doha, 10 July 2018) Qatar is seeking to raise more than $4 billion from banks to finance the purchase of Eurofighter Typhoon combat jets, according to people with knowledge of the matter. The government is working with financial advisers on the deal that it is said will be backed by export credit agencies. The gas-rich Gulf state is also holding talks with banks and export credit agencies from Italy, France and the U.K. to raise billions of dollars in loans for other defense deals, two other people said. Qatar is beefing up defense spending after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed diplomatic and economic ties with it in June 2017, accusing the country of close links to Iran and financing terrorism.

https://www.bloomberg.com/news/articles/2018-07-11/qatar-is-said-to-seek-4-billi...


Public/ECA Finance for African Energy Focuses on Fossil Fuels

(Oil Change International, Washington, 23 July 2018) Each year, approximately $20 billion from government-backed financial institutions around the world flows to energy projects in Africa. According to a new analysis by Oil Change International, nearly 60 percent of this finance from 2014 through 2016 went to support fossil fuel development, compared to 18 percent for clean energy projects. Much of the bilateral public finance for energy in Africa appears to support the commercial interests of the countries providing the finance. In part, this is because a third of the finance assessed in this analysis comes from export credit agencies, which aim to support home-country companies to secure business overseas. Titled “Assessing International Public Finance for Energy in Africa: Where Do Development and Climate Priorities Stand?”, the report examines financial flows and support from development agencies, export credit agencies, and major development banks to energy in Africa.

https://www.commondreams.org/newswire/2018/07/23/report-public-finance-energy-af...


Russian ECA Financed Bangladesh Reactor is Safe Against Natural Disasters

(Sputnik International, Moscow, 13 July 2018) The construction work on the second unit of the Rooppur Nuclear Power Plant (RNPP), which is the first ever nuclear power plant for Bangladesh, is scheduled to be launched next Saturday. On July 8, the Bangladesh Atomic Energy Regulatory Authority (BAERA), issued a license to Bangladesh Atomic Energy Commission (BAEC) for the design and construction of RNPP Unit 2. The project will cost around $13 billion, of which Russia provides a state export credit of up to $11.38 billion and the rest is financed by the government of Bangladesh. "In RNPP we will have the 'Generation 3+' technology, developed from the experience of Japan's Fukushima disaster, which will ensure more safety and security in case of tsunami, cyclone and other similar type of disasters," Dr. Shaheed Hossain, consultant of RNPP Project told Sputnik.

https://sputniknews.com/asia/201807131066321010-rooppur-npp-safe-against-natural...


Exxon expands Mozambique LNG project to cut costs ahead of bank talks

(Reuters, London, 12 July 2018) Exxon Mobil will expand its Rovuma liquefied natural gas (LNG) project in Mozambique by half to cut production costs as the partners prepare to book the plant's supply and formally tap lenders in September, the company told Reuters. The U.S. oil giant took charge of the East African LNG project's onshore operations following a $2.8 billion deal with Italy's Eni last year, adding to its suite of projects in Qatar, Papua New Guinea, Russia and the United States. Mozambique's two rival LNG projects are ramping up to take final investment decisions (FID) in 2019 and both are teeing up buyers and loans to underpin hefty construction costs. But there the similarities end. Anadarko Petroleum's approach involves raising a record $14-$15 billion from banks and export credit agencies (ECAs) to fund the build. At the same time, it is lining up long-term LNG sales deals with external companies in China, Asia and Europe to guarantee the loans. Exxon in contrast will finance a larger share of costs from its own pockets as well as drawing on project partners, including Eni, Korea Gas Corp and China National Petroleum Corporation, bank and industry sources say.

https://www.nasdaq.com/article/exxon-expands-mozambique-lng-project-to-cut-costs...


ECAs to revive defunct Uganda Airline

(Daily Monitor, Kampala, 24 July 2018) Uganda hurriedly firmed up plans to revamp the country’s defunct airline in March 2019, after signing a purchase agreement for four Canadian Regional Jets 900 series, while at the Farnborough airshow in the United Kingdom. Uganda also signed a memorandum of understanding with Airbus for two A330 planes that are to be delivered in October 2020. Since Uganda doesn’t have the money to purchase the aircraft, it has committed to borrow from different lenders, on yet to be agreed terms. The biggest value of the loan will be provided by four Export Credit Agencies (ECAs). Export Development Canada will provide 80 per cent of the money to buy regional jets from Bombardier. United Kingdom Export Finance, Bpifrance, the French Public Investment Bank, and Euler Hermes a company that provides credit insurance, bonding and debt collection services will deliver the 80 per cent of the $215.4 million (Ush800.2 billion) needed for two the long haul planes from Airbus.

http://www.monitor.co.ug/SpecialReports/Reviving-Uganda-Airlines-How-government-...


What's New June 2018

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

ECA Watch applaudes European Ombudsman demand for greater EU ECA transparency on human rights and environmental impacts

(ECA Watch, Amsterdam, 28 June, 2018) ECA-watch applauds the European Ombudsman’s ruling on maladministration of the European Commission in checking compliance of European Export Credit Agencies with EU law In a landmark ruling1, the European Ombudsman has found that the European Commission failed to fulfil its legal obligation to assess the compliance of EU-based official Export Credit Agencies (ECAs) with EU laws and human rights obligations. The Ombudsman has recommended that changes be introduced to the EC’s reporting procedures. If implemented, the ruling could mean that EU-based ECAs – national bodies that give financial support to companies doing business overseas, including in ‘risky’ markets – are to be named and shamed where their activities fail to meet EU human rights and environmental obligations.

http://www.eca-watch.org/publications/eca-watch-applaudes-european-ombudsman-dem...


Turkey Halts Filling Tigris Dam After Iraq Complains of Water Shortages

(Reuters, Ankara/Baghdad, 7 June 2018) Turkey has temporarily stopped filling a huge dam on the Tigris River after complaints from neighboring Iraq, which is suffering water shortages, officials said on Thursday. Turkey's ambassador to Baghdad and Iraq's water minister also said that the two countries had agreed that when Ankara resumes filling the Ilisu dam in July it will still allow sufficient water to flow into Iraq. The dam, more than 20 years in the making, will generate electricity for a large area of southeast Turkey. But it has been heavily criticized over its impact on the environment and on the tens of thousands of villagers who will be displaced. Its waters will also submerge a 12,000-year-old town.

https://www.usnews.com/news/world/articles/2018-06-07/turkey-halts-filling-of-il...


U.S. embassy warns Americans to leave northeastern Mozambique due to imminent attacks

(AfricaNews/Reuters, Maputo, 12 June 2018) The U.S. embassy in Mozambique said Americans should consider leaving a northeastern district close to a major gas field as imminent attacks are likely after suspected Islamist militants beheaded 10 people and killed seven others since May. Anadarko Petroleum is seeking to raise a record $14-15 billion from banks and export credit agencies for its huge liquefied natural gas (LNG) project there, sources close to the matter said in May. The company declined to comment on reports it had suspended work on its massive LNG project in the war-scarred southeastern African country. Environmental NGOs and Mozambicans have raised serious concerns about multiple negative impacts of this project. French bank Societe Generale, the financial adviser on the $20 billion Mozambique LNG project, has already received interest for a combined $12 billion in cover and direct lending from export credit agencies (ECAs) in China, South Africa, Italy and Japan.

http://www.africanews.com/2018/06/12/us-embassy-warns-americans-to-leave-northea...


Trump taps nominee to lead Export-Import Bank

(The Hill, Washington, 20 June 201) President Trump on Wednesday nominated Kimberly Reed to lead the Export-Import Bank, taking a step toward getting the agency running back at full lending strength. The 84-year-old bank has been in financial limbo over the past three years, short of enough members on its board of directors to make loans above $10 million. During her November confirmation hearing, Reed said that she looked "forward to bringing two decades of bipartisan experience to my work at the Bank, which has more than 400 dedicated career professionals." A Wall Street Journal commentator noted that "By turning to Ms. Reed, a former Treasury Department staffer during the George W. Bush administration, the White House is backing a nominee for the bank who thinks the Ex-Im Bank’s role is essential for the U.S. to counter foreign governments that operate their own export-finance agencies. At her nomination hearing late last year for a less-senior post at the bank, she said not having a functional export-finance agency amounted to “unilateral disarmament.”

http://thehill.com/policy/finance/393383-trump-taps-nominee-to-lead-export-impor...


Europe says U.S. Threat of Sanctions Imperils Bid to Save Iran Deal

(Wall Street Journal, Washington, 6 JUne 2018) Senior European officials conceded in a letter to the Trump administration that their efforts to save the Iranian nuclear accord by maintaining major trade, investment and export credits with Tehran are buckling in the face of planned U.S. sanctions. European countries have vowed to keep commerce with Iran flowing in order to persuade Tehran to remain in the accord and restrict its nuclear activity. An effort to persuade central banks to make one-off payments to Iran to pay for future oil imports has so far borne little fruit, officials say. The EU is still working on giving Iran fuller access to European Investment Bank loans. Officials are also considering extending credit lines, like the €5 billion ($5.85 billion) program set up by the Italian government, or providing export credit guarantees to companies. However, even these programs could be vulnerable to U.S. sanctions.

https://www.wsj.com/articles/european-officials-say-u-s-threat-of-sanctions-impe...


Germany Sets Up Iran Advice Office for Companies

(Financial Tribune, Tehran, 17 June 2018) The German government has set up a special office to advise companies worried about their business dealings with Iran amid fears they will be targeted for US sanctions. The European signatories to a 2015 nuclear agreement with Iran—Germany, France and Britain—have vowed to keep the deal alive after US President Donald Trump withdrew from it last month. Germany’s Economy Ministry said on Friday it has established an “Iran contact point” for companies to pose their questions by email.  The ministry stressed that European sanctions relief for Iran, one of the terms of the nuclear agreement, remain in place, and that government-backed export credit guarantees are still available, AP reported.

https://financialtribune.com/articles/economy-domestic-economy/88079/germany-set...


UK signs £1.5BILLION trade deal as Brexit Britain expands on world stage

(Express, London, 9 June 2018) Trade Secretary Liam Fox has announced the UK has secured a £1.5 billion trade deal and signed off £75 million in other trade agreements in a major boost for the UK economy after Brexit. Dr Fox is expected to release a new Export Strategy which will set out the Government’s plan to get businesses of all sizes exporting their products to boost the economy after Brexit. The lucrative trade deals come as Britain’s exit from the EU looms. Dr Fox announced today a deal worth more than £1.5 billion had been secured by a UK company to deliver natural gas project in Cameroon. Additional deals have also be secured in Panama, Turkey, India and Qatar worth £75 million for British businesses. Capitalising on recent foreign visits by Cameroon’s Minister Secretary General, the Presidents of Panama and Turkey and the Prime Minister of India, UK businesses have been exploring exporting opportunities with some of the fastest-growing economies.

https://www.express.co.uk/news/uk/971445/brexit-news-eu-uk-trade-deals-liam-fox-...


UKEF provides £2.5bn in support for UK exports

(Bridging & Commercial, London, 21 June 2018) UK Export Finance (UKEF) has revealed that it helped UK exporters – 77% of which were smaller businesses – secure sales to over 75 countries during the financial year 2017/18. In its annual report and accounts, the UK’s export credit agency reported that it provided £2.5bn in support for UK exports during the same period. It also stated that since 2011, it had supported £4.1bn in export contracts through its trade finance products, which were introduced to give smaller businesses an exporting edge. The annual report and accounts are availalable here.

https://bridgingandcommercial.co.uk/article-desc-13661_UKEF%20provides%202.5bn%2...


Intra-Africa trade boosted by launch of $1 bln promotion programme

(African Independent, Cape Town, 27 June 2018) The African Export-Import Bank and the Export Credit Insurance Corporation of South Africa have launched a  $1 billion trade and investment programme expected to boost business between South Africa and the rest of the continent. The programme will help address the need for African countries to work closely together in addressing the challenges of fragmented markets, under-developed production structures and inadequate economic diversification, the deputy director general of trade at the department of trade and investment Lerato Mataboge said at the launch on Tuesday. "Our aim as a government is to increase the levels of South African investments in the rest of the continent through targeted support measures," Mataboge said. "We have targeted $100 billion of investments to be reached in the next five years and we want to ensure a sizable amount of investments into South Africa that are of African origin."

https://www.africanindy.com/news/intra-africa-trade-boosted-by-launch-of-1-bln-p...


Gazprom signs $1.2bn Bolivia deal

(Energy Reporters, Istanbul, 20 June 2018) Russian state-run gas monopoly Gazprom has committed to invest US$1.2 billion in exploration and production at the Vitiacua onshore field in southern Bolivia.  “This contract will mean an investment by Gazprom of US$1.2 billion, the drilling of two exploratory wells, six development wells, adding a total of eight wells, with a maximum production of 400 million cubic feet in coming years,” Bolivia’s state-owned oil and gas company YPFB chief executive Oscar Barriga said. The Viticua block in the Chaco oil and gas basin has potential reserves of 2.17 trillion cubic feet, Barriga told the media. The Russian agency for export credit and investment insurance, Exiar, and Bolivia’s energy ministry signed a deal to secure financing for supplies of gas-fuelled machinery and equipment produced in Russia. Around 20,000 Russian public transport vehicles will be shipped to Bolivia as part of the Bolivian government’s efforts to boost natural gas as a transport fuel instead of oil.

https://www.energy-reporters.com/consumption/gazprom-signs-1-2bn-bolivia-deal/


Uzbekistan and Rosatom to build joint nuclear power plant

(Vestnik Kavkaza, Tashkent?, 4 June 018) Uzbekistan will be the first country in Central Asia to have a nuclear power plant. Rosatom proposes to build a station consisting of two modern VVER-1200 units of 3+ generation. A similar project is being implemented by Rosatom in Bangladesh. It is estimated at about $13 billion, of which $11.3 billion provided by Russia as a state export credit. The cost of the Belarus NPP was $10 billion. The cost of the Uzbek nuclear power plant is unknown yet. Expert Kubat Rakhimov believes that the Uzbek nuclear power plant will be more expensive, since it will be difficult to solve the issue of a cooling system in Navoiy without sufficient quantity of running water and / or large water bodies. Russia is ready to offer Uzbekistan several options for financing the project, including on the terms of a state loan, a scheme of borrowed money from the market, investing its own funds, as well as the BOO scheme (build-own-operate). In addition, the possibility of allocating borrowed funds for the construction of the station from the Russian Export Center is being discussed.

http://vestnikkavkaza.net/analysis/Uzbekistan-and-Rosatom-to-build-joint-nuclear...


Vietnam's Long Phu coal plant delayed due to US embargo on Russian Contractor

(Vietnam Investment Review, Hanoi, 17 June 2018) On January 26, Power Machines, the EPC contractor of Long Phu 1 thermal power plant, was put on the US Department of Treasury’s extended list of Russian individuals and companies subject to sanctions imposed on Moscow over the Ukraine crisis. The move may delay the construction of Long Phu 1 project by 36 months. After the sanctions were imposed on Power Machines, General Electric announced cancelling the contract of supplying turbines and generators, which are two important segments of the project.

http://www.vir.com.vn/three-billion-dollar-thermal-power-plants-running-behind-s...


Anti-Adani NSW protest outside Australian ECA office

(The Australian, Sydney, 29 June 2018)  Protesters worried about potential taxpayer funding of Adani's mega-mine in central Queensland have picketed the Sydney offices of Australia's export credit agency. About 40 Frontline Action on Coal activists on Friday demanded to meet with the boss of the Export Finance and Investment Corporation. They chanted "money for health and education, not for mining corporations" and unfurled a large banner reading "No Future In Coal #NoNewCoal" before being moved on by NSW Police after an hour. The group claim federal Trade Minister Steven Ciobo has directed EFIC to assess "putting public money" behind the Indian mining giant's proposed thermal coalmine.

https://www.theaustralian.com.au/news/latest-news/antiadani-nsw-protest-outside-...


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