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What's New! Vol.
8, No. 7
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July 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
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German, Swiss and Austrian ECAs confirm cancellation of Ilisu credits |
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Xinjiang riots damage Sino-Turkish ties, including possible Ilisu involvement |
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Japanese NGOs Demand Rigorous Safety Assessment for Nuclear Projects |
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Portuguese Government finalizes re-nationalization of COSEC |
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China to improve reform plans of China Eximbank, Sinosure |
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How One Mine Got a $1.05 Billion Loan Amid the Global Financial Crisis |
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Short-term export credits move back to government subsidies |
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8) |
Climate Follies: Bankrolling Dirty Power in Developing Countries |
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Export credit insurance supports Chinese exports to emerging markets |
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10) |
Nabucco Gas Pipe Accord Signed as Europe Looks Beyond Russia |
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11) |
U.S. extends export financing repayment terms for hydro, ocean thermal, nuclear |
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12) |
Oil Search Ltd. Says LNG Project Wins ‘Vote of Confidence’ |
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View Back Issues of What's New |
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| 1. |
German, Swiss and Austrian ECAs confirm cancellation of Ilisu credits |
| (ECA Watch, Ottawa, 30 July 2009) A plethora of news reports this month heralded the confirmation on 7 July 2009 by German, Swiss and Austrian ECAs of their unprecedented withdrawal of support for the Ilisu dam project in Turkey. A sample of these reports can be found online from Reuters, the Financial Times, Water Power Magazine, Hydro Review, Pressportal and Amnesty International. The Stop Ilisu Campaign welcomed the withdrawal of major leading European banks as well. Turkey said it would continue with the 1.2 billion euro (US$1.68 billion) project on the Tigris River despite the loss of the export credit insurance and bank support covering European-based suppliers and contractors. |
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| 2. |
Xinjiang riots damage Sino-Turkish ties, including possible Ilisu involvement |
| (Financial Times, Ankara, 14 July 2009) Prime Minister Erdogan of Turkey has created a firestorm by comparing China’s treatment of its Uighur population – Muslim Chinese of Turkic origin in the northwestern region of Xinjiang – to “genocide”...While both sides are now keen to smooth over their differences, Turkish officials sources say they have “big, big worries” that the spat will hurt trade relations... [President] Gul’s [recent] trip led to several deals with hydro power groups, sparking rumours that China might even help fill the gap left by European export credit agencies to fund the controversial Ilisu dam project. |
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Japanese NGOs Demand Rigorous Safety Assessment for Nuclear Projects |
| (Japanese NGOs, Tokyo, 27 July 2009) Japanese NGOs concerned about the social and environmental impacts of proposed exports of nuclear power plants today submitted demands to the Ministry of Finance, the Ministry of Economy, Trade and Industry, the Japan Bank for International Cooperation and Nippon Export and Investment Insurance, demanding rigorous safety assessment, information disclosure and meaningful stakeholder involvement for projects supported by JBIC and NEXI. |
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Portuguese Government finalizes re-nationalization of COSEC |
| (O Público, Lisbon, 21 July 2009) As reported in the May 2009 What's New, the Portuguese government has confirmed its purchase of COSEC (Companhia de Seguros de Crédito) for 55 milion euros. COSEC was owned by the Banco Português de Investimento (BPI 50%) and by German insurer Euler Hermes (50%). The purchase of COSEC, was formalized at the height of criticisms from the export sector because of a lack of guarantees to back sales abroad. |
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China to improve reform plans of China Eximbank, Sinosure |
| (Xinhua, Beijing, 24 July 2009) The People's Bank of China, the central bank, said Friday that it will further advance reform plans for the Export-Import Bank of China (China Eximbank) and China Export & Credit Insurance Corporation (Sinosure) in the second half of this year. The reforms will enhance support to
Chinese enterprises' overseas expansions, and combat shrinking
external demand. |
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How One Mine Got a $1.05 Billion Loan Amid the Global Financial Crisis |
| With the global economy in free fall, credit markets seized up, the price of commodities tumbling and governments pumping hundreds of billions of dollars into national financial systems, it's not exactly the best time to go in search of project financing. That didn’t stop Antofagasta from obtaining a $1.05 billion loan from a consortium of banks and ECAs to help finance the development of Minera Esperanza, a joint Chilean Japanese copper-mining venture. Consortium lenders include: government-run export credit agencies Japan Bank for International Cooperation, Export Development Canada and Germany’s KfW IPEX-Bank GmbH and commercial banks Mizuho Financial Group, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp., Calyon, ING Capital, Santander and Natixis. |
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Short-term export credits move back to government subsidies |
(ECA Watch, Ottawa, 31 July 2009) Short-term export credits have generally been deemed "marketable", and therefore under “normal circumstances”, official ECAs are prohibited from supporting short-term cover for exports to OECD and some other countries. However, since the outset of the financial crisis, a significant withdrawal of private actors from the short-term (ST) trade finance market has been experienced in many EU countries and in response, various measures have been taken at national levels to fill the gap.
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| 8. |
Climate Follies: Bankrolling Dirty Power in Developing Countries |
| (Reuters, Washington, 15 July 2009) While the industrialized world is struggling to cut its emissions, and is gearing up to negotiate a new international climate treaty in Copenhagen this December, it is simultaneously bankrolling the construction of thousands upon thousands of megawatts of new coal-fired power in developing countries via export credit agencies and multilateral financial institutions. |
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Export credit insurance supports Chinese exports to emerging markets |
| (Peoples' Daily, Beijng, 3 July 2009) At present export credit insurance coverage on China's general export trade is around 10%. In June there was a significant increase in the number of relatively long-term credit insurance policies signed, which strengthens the support for exports to emerging markets in particular. Short-term export credit insurance supported US$4.23 billion of exports to emerging markets in June, up 171% month-on-month. It is expected that US$84 billion of short-term export credit insurance will be allocated this year in the State Council's executive meeting. The realization of this goal will directly boost US$50 billion exports and secure more than 10 million jobs in relevant industries. |
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Nabucco Gas Pipe Accord Signed as Europe Looks Beyond Russia |
| (Bloomberg, 3 July 2009) European countries planning a pipeline to reduce reliance on Russian natural gas today sealed an agreement that may help companies led by OMV AG find customers for the 7.9 billion-euro ($11 billion) project... “The EBRD is already involved in discussions with other IFIs and commercial banks and export credit agencies to work together to structure a bankable project,” said Riccardo Puliti, EBRD’s energy group director. |
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U.S. extends export financing repayment terms for hydro, ocean thermal, nuclear |
| (Hydro World, Washington, 15 July 2009) The U.S. Export-Import Bank announced that U.S. exports to renewable energy, water, and nuclear power projects are now eligible for a maximum repayment term of up to 18 years under the bank's export financing. Eligible renewables include hydropower; ocean thermal, tidal, and wave energy; wind, solar photovoltaic and thermal energy; geothermal power; and bio-energy... The OECD recently extended the maximum repayment term to 18 from 15 years and adopted other changes to facilitate financing to such projects, which are associated with higher capital costs. |
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Oil Search Ltd. Says LNG Project Wins ‘Vote of Confidence’ |
| (Bloomberg, Port Moresby, 21 July 2009) Oil Search Ltd. said $600 million of spending on preparations for a Papua New Guinea liquefied natural gas (LNG) venture before a final decision on its construction is a vote of confidence for the Exxon Mobil Corp.-led project. Talks with banks on project financing will start this month, after key terms were agreed with export credit agencies late in the second quarter. The project will deliver LNG to Japan, China and Taiwan amongst others. |
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