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April/May 2004
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"What's New!" is
a periodic update to keep you informed of the latest uploads onto
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 be added onto the recipients list
for "What's New!", simply sign up from the website, www.eca-watch.org
today!
Questions?
Email info@eca-watch.org
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Items:
1 )
U.K Parliament Rips British ECA on Baku-T'Blisi-Ceyhan Pipeline
2)
Export Credit Group Rebuffs NGO call for Discussion on Bribery
3)
Victory Against Proposed KEPCO Coal-Fired Power Plant in Iloilo
, Philippines
4)
Brazilian NGOs write Letter to BNDES Urging Bank to Act More Sustainably
5)
Belgian NGO Files Complaint against Tractebel in Belgian ECA-backed
Dam Project
6)
Global Witness Transparency Report on Oil, Mining, and Gas Revenues
7)
Denmark ECA adopts “Equator Principles”
8)
JBIC May Support 1,500-Mile Siberian Pipeline
9)
JBIC to Support Greenhouse-gas Reducing Projects in Mexico
10)
JBIC and NEXI to Support Second Fertilizer Plant Project in Iran
11)
Japan Waives Bangladesh Debt to JBIC
12)
JBIC Extends Financing to India
13)
Japan Issues First Trade Insurance for Postwar Iraq
14)
Em-Im Bank's First Transaction in Postwar Iraq
15)
Ex-Im Chairman on Bank's Role in Iraq
16)
Democratic Alliance Welcomes Brit Arms Probe
17)
ECGD and Troubled Dabhol Power Project
18)
British, French, and Italian ECAs Finance Oil Pipeline in Algeria
19)
Bulgarian Nuclear Plant Back in Action
20)
Australian Firms Plunder the Environment in Papua New Guinea
21)
Australian EFIC Proposes Assistance to Sri Lanka with Water Supply
Project
22)
OPIC's 2003 Environmental Report Now Online
23)
COFACE Releases List of Projects
1)
UK
Parliament Rips British ECA on Baku-T'blisi-Ceyhan Pipeline
May
20, 2004 A U.K. Parliamentary hearing ripped the U.K. ECA, the Export
Credit Guarantee Department's (ECGD's) handling of the Baku-Tbilisi-Ceyhan
oil pipeline, for which the Department approved $120 million of
funding. In the hearing, the Committee Chair rebuked ECGD for its
failure to perform adequate due diligence and its over-reliance
on the project sponsor, British Petroleum, for due diligence information.
A key set of questions raised by the committee related to ECGD's
response to allegation in the Sunday Times that BP had withheld
key safety information on the coating used to seal segments of the
pipeline. The issue of the detention and alleged torture of Ferhat
Kaya was also raised, with the ECGD saying it could not comment.
See
a transcript of oral evidence.
2) Export
Credit Group Rebuffs call for Discussion on Bribery
May
6, 2004 - The OECD Export Credit Group (ECG) has rebuffed an April
15, 2004 NGO letter encouraging the ECG to initiate discussion between
ECAs on particular bribery case studies, including the Bonny Island
LNG Plant, to see what can be learned from such examples. NGO have
told Britain 's Export Credit Guarantee Department, the U.S. Import
Bank, and the Export Credit Group that this is a test case for the
December 2000 anti-corruption pact at the OECD in which ECAs agreed
to take action against bribery and not to support projects where
there is evidence of bribery. This follows an allegation that up
to $180 million was paid to Nigerian Government officials for construction
of trains 1, 2, 3, 4, and 5. The NGO letter also encourages the
ECG to keep a database of allegations of bribery on projects supported
by ECAs.
Click
Here for NGO letter to the Export Credit Group
Click
here for NGO letter to ECAs
Click
here for related Forbes article
3) Victory
Against Proposed KEPCO Coal-Fired Power Plant in Iloilo, Philippines
March
2, 2004 – Before a proposed KEPCO (Korean power company) coal-fired
power plant, to be located on the Visayas Island in the Philippines
) could seek funding from ECAs, local civil society organizations
convinded a local legislature to reject it. The Sangguniang Panlalawigan
(SP), the local government legislative body adopted a Committee
Report that rejected the project 7-5, with one abstention. Responsible
Ilonggos for Sustainable Energy (RISE), and the Banatenhons Against
Coal Plant (BACP) organized a mobilization in front of the Iloilo
Provincial Capitol calling for rejection of the KEPCO plant based
on environment, human health and livelihood concerns. Meanwhile,
alternative clean energy options exist on the island of Panay ,
including wind, hydro, and biomass.
4) Brazilian
NGOs write Letter to BNDES Urging Bank to Act in More Sustainable
Manner
March
2004 - The Brazilian NGO Forum and the Rios Vivos Coalition, along
with other civil society organizations, sent a letter to Brazil
's National Social and Economic Development Bank (BNDES) expressing
disagreement with the Bank's policies and programs, and encouraging
the Bank to be more transparent and to support social, economic,
and environmental sustainable development in its actions. A large
proportion of BNDES' financing goes to mega infrastructure projects,
including hydroelectric dams in Brazil , Three Gorges Dam in China
, and Son La dam in Vietnam . BNDES is also one of the principal
promoters of the South American Regional Infrastructure Integration
Initiative (IIRSA), and large-scale infrastructure projects to “integrate”
the continent, without adequately assessing the economic, social,
and environmental impacts.
5) Belgian
NGO Files Complaint against Tractebel in Belgian ECA-backed Dam
Project
April
15, 2004 - The Belgian NGO, Proyecto Gato, has filed a complaint
alleging violations of the OECD Guidelines for Multinational Enterprises
with respect to the Houay Ho dam reservoir in Laos . The complaint
alleges that the Belgian company, Tractabel, breached the Guidelines
in a number of ways including the failure to complete the project
Environmental Impact Assessment until two years after the project
was started, failure to adequately assess project impacts on endangered
species; failure to deal with impacts of logging on indigenous people,
and failure to avert negative health, social and economic impacts
associated with the forced eviction of 3000 people. The Belgian
ECA, Delcredere, provided political risk insurance for the project.
6) Global
Witness Transparency Report on Oil, Mining, and Gas Revenues
March
25, 2004 – All Africa caries a recent Global Witness document that
considers five major examples where revenue from oil, gas, and mining
that should be funding sustainable economic development, have been
misappropriated and mismanaged. In countries such as Kazakhstan
, Congo Brazzaville, Angola, Equatorial Guinea , and Nauru , the
governments do not provide basic information about their revenues
from natural resources, nor do oil, mining and gas companies publish
any information about payments made to governments. Investigations
reveal that companies have played a willing role in facilitating
off the books payments, misappropriation of State assets, and other
nefarious activities as part of an anti-competitive, under-the-table
method of winning business with unaccountable regimes. The report
suggests that export credit agencies, which insure many major extractive
investments, should require disclosure of revenues and payments.
7) Denmark
ECA adopts “Equator Principles”
May
13, 2004 – Denmark 's ECA, Eksport Kredit Fonden, announced that
it is the first ECA worldwide and the first financial institution
in Denmark to adopt the “Equator Principles” which are a voluntary
set of international guidelines developed by the banks for managing
environmental and social issues related to project finance. The
“Equator Principles” are based on the policies and procedures as
set by the World Bank institution International Finance Corporation
(IFC).
8) JBIC
May Support 1,500-Mile Siberian Pipeline
April
5, 2004 – The Washington Post reports that last May it appeared
as though China and Russia would cooperate in a $150 billion deal
to jointly erect a 1,500-mile-long pipeline to carry crude oil from
Siberia to China . Instead, Japan has offered Russia a more appealing
offer, in part through the Japanese Bank for International Cooperation
(JBIC). JBIC has tentatively extended as much as $6 billion to finance
the pipeline construction, and billions of dollars more via private
companies for oil exploration in eastern Siberia . Japan claims
to have no intent to monopolize the oil reaching the Nakhoda port.
9) JBIC
to Support Greenhouse-gas Reducing Projects in Mexico
April
15, 2004 - The Asahi Shimbun reports that the Japan Bank for International
Cooperation (JBIC) is expected to reach an agreement with Mexico
under which JBIC will extend loans to companies undertaking Clean
Development Mechanism (CDM) projects such as plant upgrades and
collection of greenhouse gases in Mexico . In return, Japan will
receive emissions rights, helping it to achieve its Kyoto Protocol
greenhouse-gas emissions goals. Observers say Japan will be unable
to achieve its annual emissions targets through domestic reductions
alone.
10) JBIC
and NEXI to Support Second Fertilizer Plant Project in Iran
April
16, 2004 - Japan Corporate News Network reports that Toyo Engineering
Corporation and Chiyoda Corporation along with an Iranian engineering
firm, Petrochemical Industries Design and Engineering Company, and
with the cooperation of Mitsui & Co., announced a contract to
construct a 2,050 t/d ammonia plant and a 3,250 t/d urea plant in
the Bandar Assaluyeh region in Iran . The $230 million fertilizer
complex, scheduled for completion in 2006, is one of the largest
in the world and will use natural gas from the South Pars Gas Field
as a feedstock. Japan Bank for International Cooperation (JBIC)
and Nippon Export and Investment Insurance (NEXI) have extended
an export credit.
11) Japan
Waives Bangladesh Debt to JBIC
March
21, 2004 – The New Nation reports that Japan relieved Bangladesh
of repaying Tk 8,395 crore (158 billion yen) in debt. Through the
debt relief agreement, the Bangladesh government has been exempted
from the repayment of principals and interest for its loan agreements
signed with Japan Bank for International Cooperation (JBIC).
12) JBIC
Extends Financing to India
March
31, 2004 – Sify Finance reports that Japan's Bank for International
Cooperation (JBIC) extended India Rs 5,102 crore credit for the
implementation of eight projects, a 12.4% increase over JBIC's previous
years soft loan financial assistance. Projects to be funded include
the Delhi Mass Rapid Transport System (DMRTS) Project, Haryana Integrated
Natural Resource Management and Poverty Reduction Project, Phase
II of the Purulia Pumped Storage Project, Dhauliganga Hydroelectric
Power Plant in Uttranchal, and Rengali Irrigation Project in Orissa.
13) Japan
Issues First Trade Insurance for Postwar Iraq
April
24, 2004 The Kheleej Times reports that Nippon Export and Investment
Insurance (NEXI) will insure equipment shipped by Mitsubishi Heavy
Industries Ltd. to rebuild a power plant in Hartha, a project undertaken
by the U.N. Development Programme.
14) Em-Im
Bank's First Transaction in Postwar Iraq
April
28, 2004 The Export Import Bank of the U.S. is insuring its first
transaction for Iraq , the $15 million export sale of fogging machines
and accessories for insect abatement manufactured by Tifa Ltd. of
Millington , NJ for the Iraqi Ministry of Health.
15) Ex-Im
Chairman on Bank's Role in Iraq
March
27, 2004 – Arabic News reports that chairman of the Export-Import
Bank of the U.S. (Ex-Im Bank), Phillip Merrill, in his March 24
remarks to a business organization in Washington , discusses his
view of the role of Ex-Im bank in the world, especially in Iraq
. According to Merrill, the U.S. must help Iraq realize wealth quickly,
and that unless it can find a way of using its oil reserves to obtain
the necessary capital, the U.S. taxpayer will likely have to pick
up the tab.
16) Democratic
Alliance Welcomes Brit Arms Probe
March
31, 2004 – News 24 reports that the Democratic Alliance welcomes
a British parliament investigation of allegations of bribery involved
in an arms deal between South Africa and British firm BAE Systems.
Britain 's Export Credit Guarantee Deparment (ECGD) helped finance
South Africa 's arms purchase from BAE Systems. The parliament probe
will investigate whether BAE systems paid any commissions or bribes
in South Africa to obtain its contract.
17) ECGD
and Troubled Dabhol Power Project
March
8, 2004 – The Financial Express reports that Standard Charter, ABN
Amro, and ANZ have approached the British ECA, Export Credit Guarantee
Department (ECGD), to seek $60 million towards an unpaid insurance
claim against their investment in the troubled Dabhol power plant
project. The project was launched by Enron in the 1990s, but forced
to close three years ago due to a payments dispute that banks argue
is expropriation by the Indian Government. U.S. arbitrators upheld
similar claims of expropriation made by GE and Bechtel, which hold
10 percent stakes in the fallen Dabhol Power Company. Susan Crowley
of Corner House stated, “Dabhol has long been surrounded by controversy,
corruption charges and human rights abuses. It is a mystery what
these investors saw in it and why the ECGD saw it fit to back them.”
18) British,
French, and Italian ECAs Finance Oil Pipeline in Algeria
March
29, 2004 – Norway 's Afrol News reports that the Algerian OZ2 oil
pipeline, stretching 800km from Haoud el Amra in Southern Algeria
to Arzew on the Mediterranean coast is foreseen to transport the
equivalent of 25% of France 's oil consumption when it is finalized
in 2005. The pipeline is being constructed by Sonatrach, the Algerian
national oil and gas company, a French-Italian consortium, and British
companies with insurance from the Export Credits Guarantee Department
(EKGD) UK , SACE Italy, and COFACE France . See
related story in Business Credit Management.
19) Bulgarian
Nuclear Plant Back in Action
April
22, 2004 – Novinite reports that Czech companies, including Skoda,
have bid for completing work on Bulgaria 's second nuclear plant,
and the Czech Export Bank is backing Skoda's bid. A ban that was
placed on the project back in 1992 after pressure from environmentalists
was lifted at the end of last year.
20) Australian
Firms Plunder the Environment in Papua New Guinea
May
2, 2004 – Writing in The National, Sir Paulias Matane, invites comments
on an article regarding the Australian governments “aid” to the
Pacific Island states. The article states that companies such as
BHP-Billiton and Rio Tinto, through support of the Australian Export
Finance Insurance Corporation (EFIC), have destroyed societies and
the environment through mining projects. The Australian NGO, AIDwatch
commented that the Australian-owned CRA/Rio Tinto Lihir gold mine
project will in its lifetime dump 98 million tones of cyanide contaminated
tailings and 330 million tones of waste rock into the ocean in an
area described as one of the richest areas of marine biodiversity
on earth. Nevertheless, in 1999 EFIC provided the mining companies
with the risk insurance required to begin the project.
21) Australian
EFIC Proposes Assistance to Sri Lanka with Water Supply Project
March
28, 2004 Sri Lanka's Daily News reports that Australian Export Finance
and Insurance Corporation (EFIC) has offered the Sri Lanka National
Water Supply & Drainage Board to provide funds for Phase III
of a three phase drinking water supply project to Ampara District.
The objective is to cover the entire area with pipe borne water,
supplying safe drinking water to 433,331 people or 73.5% of the
district population.
22) OPIC's
2003 Environmental Report Now Online
April
2004 - OPIC's 2003 Annual Environmental Report is now online. The
report includes a cursory section on projects rejected on environmental
grounds. Claiming business confidentiality, OPIC conceals the names
of the projects, sponsors, or foreign enterprises connected to the
rejected projects.
23) COFACE
Releases List of Projects
April
2004 – The French ECA, COFACE, has released a list of projects it
has backed in the last quarter of 2003.
View
Back Issues of What's New:
March
2004
January-February
2004
December
11, 2003
November
5, 2003
September
15, 2003
May
18, 2003
April
11, 2003
March 17, 2003
February 20, 2003
February 7, 2003
January 24, 2003
December 17, 2002
November 22, 2002
October 29, 2002
October 23, 2002
September 30, 2002
September 12, 2002
August 26,
2002
July 19, 2002
July 08, 2002
June 14, 2002
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