(Reuters, Washington, 18 January 2021) The head of the Export-Import Bank of the United States (EXIM) on Monday urged the Biden administration to keep pushing to neutralize Chinese export subsidies and help U.S. companies compete, building on gains made under Donald Trump. Chairman Kimberly Reed, a political appointee who will leave her job on Wednesday after 20 months in office, told Reuters she was confident that restoration of the bank’s full lending powers had strengthened the competitiveness of U.S. companies and helped level the playing field, but more work was needed.
ECAWatch Newsletter 20
Turkish ECA finances US$70 million Kenyan armored car deal
(Defense News, Virginia, 29 January 2021) Kenya’s military has ordered 118 four-wheel drive personnel carriers from Turkish armored vehicles manufacturer Katmerciler. Kenya Defence Forces spokesperson Col. Zipporah Kioko told local press that the Ministry of Defence is finalizing the deal for the mine-resistant, ambush-protected Hizir vehicles through Turkey’s Export Credit Agency. Kenya’s military will primarily deploy the Hizir vehicles for counterterror operations against the al-Shabab militant group in Somolia. Reports have emerged of growing disquiet among Kenyan military ranks over the planned acquisition from the Turkish firm amid safety concerns. The vehicles, said to have fallen short of User Specifications Requirements (USR) set by the Kenya Army, were approved in a single sourcing deal by the Defense Procurement Board. Two other firms, one from South African and another from North America, were locked out of the multi-billion shillings deal, despite having more internationally accepted military vehicles.
NGOs Strongly Oppose JBIC Decision to Support Vietnamiese Coal-fired Power Generation Project
(FOE Japan, Tokyo, 29 January 2021) JBIC, a public financial institution, announced it’s decision on December 28 to provide project financing of up to US $636 million to the Vung Ang 2 coal-fired power generation project in Vietnam. The private-sector financial institutions participating in the cofinancing are believed to include Sumitomo Mitsui Banking Corporation, MUFG Bank, Mizuho Bank and Sumitomo Mitsui Trust Bank. Vung Ang 2 has been criticized internationally, and many problems with the project have been pointed out. The signatory NGOs strongly oppose JBIC’s decision to support the project and its failure to be accountable or address many criticisms, which include the project’s inconsistency with climate change measures and inadequate environmental impact assessments. The project was originally to be sponsored by Hong Kong-based CLP Holdings together with Mitsubishi Corporation, but CLP announced its coal phase-out policy in December 2019 and decided to withdraw from the project. Standard Chartered Bank of the UK, OCBC Bank and DBS Bank of Singapore, all of which had been considering financing, also withdrew from the project. General Electric, which was expected to participate in the project announced on September 21 2020 that it would “exit the new build coal power market”. In addition to JIBC, the Export-Import Bank of Korea (Kexim) and a group of private lenders, will provide nearly US$1.8bn in loans for the project.
EDC is undermining Canada’s climate commitments. Will Ottawa step in and take action?
(Above Ground, Ottawa, 13 January 2021) Between 2016 and 2018, Canada provided more public finance for fossil fuels than any G20 country other than China, with Export Development Canada (EDC) providing on average $13.8 billion in support to oil and gas companies each year. Last month more than 50 civil society organizations joined us in calling for Ottawa to cut off this enormous flow of public financial support to an industry fuelling the climate crisis. Our letter to the trade minister urges the government to immediately end EDC’s support for all fossil fuels and to scale up its support for sustainable, renewable and equitable climate solutions that respect human rights. Find out more about EDC’s support to fossil fuel producers in our fact sheet.
