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What's New! Vol.
5, No. 8
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August 2006
"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
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1) |
BP Alaska: What lessons for the Common Approaches? |
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2) |
OECD Common Approaches Review update |
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3) |
Atradius signs consulting agreement with Chinese ECA |
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4) |
Russia repays US$22 billion in ECA debt - ECAs should forgive LDC debt |
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5) |
New sensitive Category A projects announced by ECAs |
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Moscow puts legal pressure on Shell to halt Sakhalin pipeline |
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7) |
Turkish dam controversy tests government |
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8) |
Swedish SEK Lending is Reaching New Records |
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9) |
UK Serious Fraud Office investigates murky Nigerian oil deal with ECA support |
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10) |
OECD publishes latest Common Approaches procedures questionnaire results |
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11) |
Export-Import Bank of China to Offer Loans to Taiwanese Businesses |
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View Back Issues of What's New |
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| 1. |
BP Alaska: What lessons for the Common Approaches? |
| A number of articles have appeared linking the failure of BP's due diligence in Alaska's Prudhoe Bay pipeline corrosion to potential failure of the ECA supported BTC pipeline from the Caspian to the Mediterranean. ECA Watch asks, will the new OECD Common Approaches to be approved at the end of 2006 stand up to new international standards of due diligence? |
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A. |
In Prudhoe Bay case, test of force majeure |
| (AP, Dallas, 16 August 2006) In an interesting article, lawyers and analysts argue that BP's oilfield partners Exxon Mobile and ConocoPhillips cannot rely on "force majeure" to avoid joint responsibility for loss of oil supplies, noting that BP's practices should have been questioned by its partners, given its previous troubles. |
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B. |
After Alaska, BP faces new pipeline crisis |
| (Independent, London, 12 August 2006) Environmental groups have warned that corrosion inside a controversial new ECA supported oil pipeline controlled by the British company BP could trigger a massive oil spill into some of the most environmentally-sensitive areas of the former Soviet Union. |
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BP's credibility gap |
| (New York Times business columnist Joe Nocera, 11 August 2006) BP "...is going to be raked over the coals by the U.S. Congress in hearings that are set for early September. It will have its worst documents exposed in lawsuits, and probably be accused of the worst sort of corporate greed and hypocrisy. It will be a long time before anyone believes anything BP has to say about its environmental sensitivity." |
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D. |
Ambassador warned of Azerbaijan oil pipeline risk |
| (Guardian, London, 21 August 2006) A British ambassador warned that emergency services would not cope if terrorists blew up a strategically important oil pipeline heavily supported by the UK government, a Whitehall document shows.
Campaigners opposed [to] the pipeline... told the government before it gave
[ECA] financial backing to the project that it was "a major security risk". |
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| 2. |
OECD Common Approaches Review Update |
| The OECD's Working Party on Export Credits (ECG) is reviewing its Recommendation on Common Approaches to the Environment and Officially Supported Export Credits, with the hope of approving a new Recommendation at the end of 2006. NGOs led by ECA Watch have recommended substantial changes in the standards inherent in the Common Approaches to OECD meetings to be held in September 2006 |
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A. |
Issues to be covered in the Common Approaches Review (PDF) |
| ECA Watch's letter of January 6, 2006 on the terms of reference for the Common Approaches Review |
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B. |
Suggested wording for new draft Common Approaches Recommendation (PDF) |
| ECA Watch's letter of June 9, 2006 suggesting concrete, constructive wording for inclusion in the new draft Common Approaches Recommendation |
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C. |
ECA Watch / Cornerhouse paper on participation and consultation of affected communities (PDF) |
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| 3 |
Atradius signs consulting agreement with Chinese ECA |
| (PRNewswire, Baltimore, 22 August 2006) Atradius Credit Insurance N.V. and China Continent Property & Casualty Insurance Co. Ltd. (CCIC) today formally announced the signing of a cooperative agreement in China. Under the cooperative, domestic credit insurance will be offered in China by CCIC to local Chinese companies as well as to existing Atradius customers with operations in Mainland China. |
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| 4 |
Russia repays US$22 billion in ECA debt |
| (Both Ends, Amsterdam, 24 August 2006) On Monday August 21st Russia fully paid off some US$20 billion of its foreign debt to Paris Club members.
95% of Russia’s bilateral debt was export credit debt.
Under WTO, OECD and EU regulations, all ECAs are legally required to break even in the long run, leading Dutch NGO Both Ends to demand that
all remaining export credit debt of developing countries be
cancelled immediately at the expense of the boosted reserves of ECAs. |
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| 5 |
New sensitive Category A projects announced by ECAs |
| (ECA Watch, Paris, 31 August 2006) A list of recently announced Category A projects for which a 30 day commentary period is open. ECA Watch is pleased to also provide links to a number of OECD ECA Category A announcement pages, where they exist. |
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| 6. |
Moscow puts legal pressure on Shell to halt Sakhalin pipeline |
| (Guardian, London, 4 August 2006) Shell has clashed with the Russian government over an oil project off Sakhalin Island which has already attracted the wrath of environmentalists and run way over budget. The latest setback comes days after Shell, BP and other western firms were hit by a back-tax claim, albeit much smaller than the one which finally sent Yukos into bankruptcy this week. Several OECD based ECAs are considering support for the Sakhalin project. |
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| 7. |
Turkish dam controversy tests government |
| (SwissInfo, Bern, 18 August 2006) A Swiss delegation will visit Turkey as the government ponders whether to underwrite a controversial dam project for the second time. Swiss ECA ERG officials will assess environmental and humanitarian objections to a proposed SFr310 million ($250 million) fund to allow Swiss firms to take part in building the Ilisu dam. The BBC reports "Turkey dam project back to haunt Kurds" |
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| 8. |
Swedish SEK Lending is Reaching New Records |
| (CNN MarketWire, Stockholm, 30 August 2006) Swedish Export Credit Corporation's (SEK) interim report for the first six months of 2006 shows operating profits of Skr 269.9 million (US$37.4 million) and volume of new customer finance solutions increases of over 40%. The financing of SAAB's surveillance equipment to Pakistan is the single largest transaction. |
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| 9. |
UK Serious Fraud Office investigates murky Nigerian oil deal with ECA support |
| (Financial Times, London, 7 August 2006) The investigation by the UK Serious Fraud Office into an alleged Nigerian bribery scandal involving a Halliburton subsidiary is the latest twist in a case that exemplifies the lucrative, murky and highly political world of western oil interests in Africa. A further source of controversy is the British government's role in underwriting work at the plant through more than $200m of trade insurance it supplied to MW Kellogg in 2002 as part of a plant expansion project. |
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