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August 2005
"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@eca-watch.org
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Sakhalin cost overruns reduce Shell's assets |
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Banks supporting Chinese ECA risk indirect contravention of standards |
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Australian and South African ECAs support Zambian copper mine |
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Some ECA clients get untied credit while renewable energies don't |
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Measuring the opportunity cost of ECA capital |
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Belgian NGOs list recommendations for Ducroire |
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US Export-Import Bank promotes new renewable energy incentives |
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View Back Issues of What's New |
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Sakhalin cost overruns reduce Shell assets |
| July 27, 2005 (Eurasia Daily Monitor) — A staggering USD $10B cost overrun— double initial estimates— plus a delay in the first LNG shipment from the end of 2007 to summer 2008 have significantly reduced the value of Shell's assets on Sakhalin. US, UK and Japanese ECAs are funding major shares of the project. |
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Banks supporting Chinese ECA risk indirect contravention of standards |
| August 9, 2005 (BBC) — Environmental organisations have warned that major banks may be contravening their environmental and social policies by helping to finance controversial projects indirectly. |
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Australian and South African ECAs support Zambian copper mine |
| August 10, 2005 (The Post, Zambia) — Equinox Minerals, a Canadian-Australian listed company, is proceeding with a USD $305M investment in a Zambian copper mine with support from South African and Australian ECAs, as well as from a group of international financial institutions and private banks. |
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Some ECA clients get untied credit while renewable energies don't |
| August 2005 (ECA Watch, Paris) — Participants in the OECD mediated Arrangement on Export Credits [PDF] refused to approve an increase of local cost financing for southern buyers from 15% to 30% of a project's value for renewable energy projects at their April 2005 meetings. However, the ECGD and other ECAs have for years offered small exporters competing for contracts under £10M more generous rules relating to foreign goods by supporting non-national content of up to 40%. NGOs question why some ECAs can be flexible for some projects yet cannot reach consensus on these conditions for renewable energy local costs, especially since these not only enhance competitiveness as well as sustainable development via technology transfers, but also respond constructively to the upcoming global energy crisis. |
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Measuring the opportunity cost of ECA capital [PDF] |
| March 16, 2005 (Source: UK Secretary of State for Trade and Industry) — As a part of its efforts to encourage true "break even" terms of export credits, as required by Article 22 of the OECD mediated Arrangement on Export Credits, the UK's ECGD commissioned a study which showed that the opportunity cost of lost profits on ECGD lending amounts to some £150 million or US$271 million per year. "For the first time anywhere in the world, Government and public have a transparent assessment of the economic cost of providing export credit on a break even basis, and will be able to compare this cost with other forms of industrial support." |
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Belgian NGOs list recommendations for Ducroire [PDF] |
| August 12 , 2005 (Source: Proyecto Gato) — Six Belgian NGOs have issued a statement calling on Ducroire to improve its policies with respect to the OECD Recommendation on Common Approaches on the Environment and Officially Supported Export Credits. A list of recommendations is made in the areas of human rights, transparency, environmental standards, monitoring, no-go zones and sector exclusions, formation of a Compliance Commission, renewable energy incentives, debt impact and anti-corruption practices. |
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US Export-Import Bank promotes new renewable energy incentives |
| July 11, 2005 (Source: US Ex-Im Bank) — The US Ex-Im Bank is now offering export financing on repayment terms of up to 15 years for US exports of goods and services to be used in certain renewable energy and water projects. Effective as of July 1, the longer repayment terms are available in accord with an agreement of the Organization for Economic Cooperation and Development (OECD) that permits export credit agencies of OECD countries to offer enhanced terms for renewable energy and water projects. |
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