Index for July 2012

Volume 11, Issue 7

  • (OECD, Paris, 28 June 2012) The OECD Council has ratified the Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence, claiming the new rules will strengthen current environmental and social due diligence processes. Article 28 of the new Common Approaches still allows Members "to support a project that does not meet the relevant aspects of the international standards" provided they report their reasons to the OECD. At the same time, a new sector understanding on renewable energy, climate change mitigation and water projects was agreed to replace Annex IV of the Arrangement, a "Gentlemen's Agreement" amongst its Participants who represent most OECD Member Governments. The Arrangement sets forth the most generous export credit terms and conditions that may be supported by its Participants without being deemed a subsidy under the WTO Agreement on Subsidies and Countervailing Measures (ASCM).
  • (OECD, Paris, 28 June 2012) The OECD Council has ratified the Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence, claiming the new rules will strengthen current environmental and social due diligence processes. Article 28 of the new Common Approaches still allows Members "to support a project that does not meet the relevant aspects of the international standards" provided they report their reasons to the OECD. At the same time, a new sector understanding on renewable energy, climate change mitigation and water projects was agreed to replace Annex IV of the Arrangement, a "Gentlemen's Agreement" amongst its Participants who represent most OECD Member Governments. The Arrangement sets forth the most generous export credit terms and conditions that may be supported by its Participants without being deemed a subsidy under the WTO Agreement on Subsidies and Countervailing Measures (ASCM).
  • (Times of India, New Delhi, 17 July 2012) Russia has agreed to extend a USD 3.4 billion export credit for setting up of two more 1,000 MW atomic power plants at the same site in Tamil Nadu. The two nations signed a protocol on Tuesday in Moscow for financing units 3 and 4 of the Kudankulam Power Project under which the Russian Federation will extend export credit for 85 per cent of the value of works, supplies and services provided by the Russian organisations for the two units.
  • (Oxfam Australia, Melbourne, 12 May 2012) A recent joint research project conducted by Oxfam, ChildFund Australia, Jubilee Australia, Melanesian Institute, UnitingWorld, PNG Church Partnership Program, and the National Centre for Peace and Conflict Studies at the University of Otago - examines the influence of the PNG liquid natural gas Project (LNGP) in the Hela region of Papua New Guinea, including the immediate social changes and impacts associated with the LNGP. It focuses particularly on threats to human security, but also includes broader LNGP concerns of importance to the local people in the Hela region. The project is supported by ECAs from the US, Japan, China, Italy and Australia
  • (EFIC, Sydney, 5 June 2012) Australia's Export Finance and Insurance Corporation has recently announced a grievance/complaints mechanism which allows "any customer, client or individual, group, community, entity or other party concerned about, affected or likely to be affected by EFIC’s activities, including a project supported by an EFIC transaction," to submit a complaint.
  • (Reuters, Sydney/Melbourne, 11 July 12) Loan financing for the Gina Rinehart's $10 billion Australian Roy Hill iron ore project in Australia is being held up by talks on capping construction costs, sources said, threatening to push the project back after delays caused by a legal feud in the mining magnate's family... The project, racing to come on line in late 2014 to beat a risk of iron prices sliding, is looking to raise between $6 and $7 billion in project financing, with more than half seen coming from export credit agencies in Japan, South Korea and China, four sources with knowledge of the deal said.
  • (Daily Times, Islamabad, 21 July 2012) Pakistan's Board of Investment (BoI) is working to establish an Export Credit Fund (ECF) for Italian investors for the expansion of their businesses in Pakistan. Italy's Ambassador said despite the security situation they find Pakistan an attractive market and would increase liaison with concerned organisations in Pakistan to look into possibilities in all sectors of interest such as power generation and offshore gas, coal, infrastructure and pharmaceuticals... Prime Minister Raja Pervez Ashraf has directed that the Rules of Business of Pakistan be changed enabling the BOI to attract foreign investment to the country to speed development.
  • (CSRwire, Ottawa, 10 July 2012) Export Development Canada (EDC), Canada's Export Credit Agency, today issued its Annual Report on Corporate Social Responsibility (CSR). The report outlines EDC’s key achievements in the areas of business ethics, transparency, the environment, community investment and employee engagement.