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	Overview of the Problems
	Highlight: Russia's Sakhalin II
	Highlight: The BTC Pipeline

What's New! Vol. 8, No. 12

December 2009 - What's New! Indices - 2005 2006 2007 2008 2009

"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

	1)	New Law Requires U.S. OPIC to Reduce Greenhouse Gas Emissions by 50%
	2)	Record U.S. Ex-Im Bank Financing for Papua New Guinea LNG Project
	3)	UK Parliamentary report calls for tougher action to end abuses by British companies abroad
	4)	Kazakhstan agrees to $1.6 billion ECA write off
	5)	Netherlands stops Dubai investment insurance
	6)	IFIs can provide up to €1.5bn to finance Nabucco
	7)	As Boeing Hits Turbulence, Uncle Sam Flies to Its Aid
	8)	US$6.7 million non-performing loan: NEXIM Bank debtors disappear into thin air
	9)	China's short-term export credit exceeds US$84 billion
	10)	OECD publishes cash flow results for official export credits & Category A & B projects
	11)	Will China Turn Its Back on International Standards in the Ilisu Dam?
	12)	Reform of the Spanish Export Credit Agency will create more Southern debt
	—	View Back Issues of What's New

1.	New Law Requires U.S. OPIC to Reduce Greenhouse Gas Emissions by 50%
	(Pacific Environment, San Francisco, 22 December 2009) As climate negotiations in Copenhagen ended with a whimper, new U.S. legislation passed last week that requires the U.S. Overseas Private Investment Corporation (OPIC) to phase down greenhouse gas emissions from financed projects by 30 percent in 10 years and by 50 percent in 15 years. These provisions include requirements for OPIC to implement a revised climate change mitigation plan to phase down GHG emissions associated with projects and sub-projects by at least 30% in 10 years and 50% in 15 years over 2008 levels. This builds off of emissions reductions of 20% over 10 years that was achieved in an agreement settling a landmark 2002 lawsuit filed by Friends of the Earth, Greenpeace and others. See pages 250-251 of the bill.

2.	Record U.S. Ex-Im Bank Financing for Papua New Guinea LNG Project
	(Reuters, Bloomberg, Financial Times, Pacific Environment, 5 December 2009) The U.S. Ex-Im Bank has approved the largest financing transaction in its 75-year history - $3 billion to support U.S. exports for a liquefied natural gas (LNG) project in Papua New Guinea. Financing for the construction of the pipeline and liquefaction plant - to be supported by 17 banks and 5 other export credit agencies - has not been finalised but is thought to include about $8.3 billion from export-credit agencies of other governments: Italy, China, Australia and Japan. While officials from around their world worked night-and-day to come up with an international agreement to combat climate change in Copenhagen, critics say this project will clear over 1,000 hectares of primary rainforest while pumping over 3 million tons of carbon into the atmosphere every year. The 3 billion subsidy doubles the amount Export-Import spent on oil, gas, and natural gas last year and is 99 times more than the $30.4 million the bank spent on renewable energy last year.

3	UK Parliamentary report calls for tougher action to end abuses by British companies abroad
	(Independent Catholic News, London, 17 December 2009) A report, published yesterday by the Parliamentary Joint Committee on Human Rights: “Any of our business? Human rights and the UK private sector” (PDF see p.70), calling for a binding international agreement on business and human rights as well as action by the UK Government now. For instance, the Government should stop firms with poor records from getting export credit support and should consider amending the 2006 Companies Act so that businesses have to conduct an annual human rights impact assessment.


4	Kazakhstan agrees to $1.6 billion ECA write off
4	(Financial Times, London, 9 December 2009) BTA, Kazakhstan's biggest bank, has agreed a deal with creditors who will write off $7.7bn in debt and interest owed as part of a wave of restructuring in the country's banking system... The plan also provides for restructuring of around $1.6bn of BTA's total $3.5bn in export credit agreements (ECAs) and other trade finance obligations. The Export Guarantee Fund of Iran has limited support of exports to Kazakhstan to $180 million and kept the country in group 4 of the risk classification (category).

5	Netherlands stops Dubai investment insurance
5	(Radio Netherlands, Amsterdam, 14 December, 2009) Dutch companies wanting to invest in Dubai will no longer be able to insure their investments with the Dutch government. Minister of Finance Wouter Bos no longer wants to stand as guarantor for financial losses if Dubai does not pay its bills. Dubai, which is one of the 7 United Arab Emirates, is suffering badly from the financial crisis. This has led to the Netherlands facing a bill for €350 million from Dutch businesses that insured their investments with the government before the crisis. We noted last month that some analysts fear Dubai could be the canary in the coal mine for heavily indebted countries and overly leveraged banks.

6.	IFIs can provide up to €1.5bn to finance Nabucco
6.	(Trend, Vienna, 11 December 2009) The EBRD, European Investment Bank, IFC and other financial institutions can provide €1 to €1.5 billion for financing the Nabucco pipeline project designed to deliver gas from the Caspian region and the Middle East to the EU, said member of the EBRD Board of Directors Kalin Mitrev at the "Nabucco & South Stream" Forum in Vienna. Mitrev said that from €2 to €3 billion in financing for the project accounts for export credit agencies and commercial banks. He said that today the cost of the project is €8 billion, but in future it may increase.


7.	As Boeing Hits Turbulence, Uncle Sam Flies to Its Aid
7.	(Wall Street Journal, New York, 10 December 2009) Airlines are struggling amid the global recession. Boeing Co., meanwhile, is churning out jetliners at its fastest clip in years...due in large part to one man: Bob Morin, vice president of transportation at the U.S. Export-Import Bank who stumps the globe to rally sales for America's biggest exporter.

8.	US$6.7 million non-performing loan: NEXIM Bank debtors disappear into thin air
8.	(Vanguard Media, Lagos, 14 December 2009) Debtors to the Nigeria Export-Import Bank (NEXIM) have taken flight to safety following indications that the management of the bank would engage the help of the Economic and Financial Crimes Commission (EFCC) to recover the over Naira 10 billion non-performing loans in its books.

9.	China's short-term export credit exceeds US$84 billion
9.	(China Knowledge, Shanghai, 23 December 2009) - China's short-term export credit doubled year on year to US$86.23 billion in the period from Jan.1 to Dec. 14, according to China Export and Credit Insurance Corp. Export credit insurance amounted to US$110.03 billion, with indemnity of US$440 million by Dec. 18. Short-term export credit was US$86.23 billion, up 121.5% year on year.


10.	OECD publishes cash flow results for official export credits & Category A & B projects
10.	(OECD ECG, Paris, 22 December 2009) The OECD Members of the Working Party on Export Credits and Credit Guarantees (ECG) submit their cash flow results for officially supported export credits to the OECD Secretariat on an annual basis. Tables I, II, III, IV and V represent the results for 2008 and previous years, which are expressed in Special Drawing Rights (SDRs). Information in respect of Category A and B projects (i.e. those projects with high and medium potential environmental impacts) are notified by ECG Members pursuant to the 2007 OECD Recommendation on Common Approaches on the Environment and Officially Supported Export Credits. The last overall statistics for OECD Member ECAs are for 2005, published in January 2007.

11.	Will China Turn Its Back on International Standards in the Ilisu Dam?
11.	(International Rivers Network, Berkeley, 2 December 2009) The Ilisu Dam on the Tigris is a primary example of a dam that violates international social and environmental standards. Western financiers pulled out of the project in summer, but China is now considering filling the gap. Such support would be a huge setback for the affected communities and international civil society, and would express contempt for the environmental standards which China has helped to establish.

12.	Reform of the Spanish Export Credit Agency will create more Southern debt
12.	At the end of 2009, the Spanish parliament will vote on reforming the main public mechanisms that generate external debt owed by Southern countries to the Spanish state. The mechanisms that will be affected by the reform are the Development Aid Fund (FAD) and the Spanish Company of Credit Insurance to Exports (CESCE), the Spanish Export Credit Agency. If the reform goes ahead, impoverished countries risk falling further into debt and human rights violations will become more prevalent.