Infrastructure

By 2030, five billion people — almost two-thirds of the global population — could be living in the middle class. (Source: The Brookings Institution) Development of infrastructure of all types is needed to meet the demands and expectations of consumers in emerging markets.

International infrastructure development presents tremendous opportunities for American companies in a wide variety of industries – from construction equipment to power generation to telecommunications and beyond – to grow through exporting.

Ex-Im Bank is focused on supporting U.S. exporters in winning the contracts to supply international infrastructure needs across the globe but especially in the nine key country markets where the Bank has focused its efforts.

Consistent with World Bank and OECD definitions, infrastructure is defined by Ex-Im Bank to include the large physical networks necessary for the functioning of commerce (e.g., highways, railroads, power-generation plants, pipelines, satellites and radio-transmission systems), as well as goods and services required to maintain the health, cultural and social standards of a country or state (e.g., educational and healthcare equipment and services). Also included in the Bank’s definition of infrastructure are transportation vehicles, such as aircraft and locomotives, and equipment and services related to mining industries. (See accompanying table.)

Ex-Im Bank Infrastructure Authorizations

(in millions)
	FY 2011		FY 2010
Infrastructure	Infrastructure Auth.	Percentage of Total Auth.	Infrastructure Auth.	Percentage of Total Auth.
Traditional*
Hard Infrastructure	$8,179	25.0%	$1,637	6.7%
Soft Infrastructure	300	0.9%	414	1.7%
Subtotal	8,480	25.9%	2,050	8.4%
Other
Aircraft	12,614	38.5%	7,414	30.3%
Mining	1,407	4.3%	5,293	21.6%
Locomotives	545	1.7%	10	0.0%
Subtotal	14,566	44.5%	12,717	52.0%
TOTAL	$23,045	70.4%	$14,767	60.4%

* Consistent with World Bank and OECD definitions, infrastructure is defined by Ex-Im Bank to include the large physical networks necessary for the functioning of commerce (e.g., highways, railroads, power-generation plants, pipelines, satellites and radio-transmission systems), as well as goods and services required to maintain the health, cultural and social standards of a country or state (e.g., educational and healthcare equipment and services). Also included in the Bank’s definition of infrastructure are transportation vehicles, such as aircraft and locomotives, and equipment and services related to mining industries.

In FY 2011, Ex-Im Bank

• Authorized a historic high of $23 billion to support U.S. exports to infrastructure projects, including mining projects and large transportation equipment. This financing represents more than 70 percent of the Bank’s total authorizations in FY 2011. It is also a 56 percent increase over the Bank’s infrastructure financing in FY 2010.

• Approved $8.6 billion for long-term structured and project finance transactions for projects including oil and gas development and energy production – a 25 percent increase over FY 2010’s record high of nearly $6.8 billion.

• Approved more than $12.6 billion in financing to support the export of U.S.-made aircraft of all types, including $10.8 billion in support of large commercial aircraft to a total of 21 countries, including first-time support for aircraft exports to Rwanda and Tajikistan.

• Supported U.S. locomotive exports to South Africa and Kazakhstan through authorizations totaling $545 million.

• Authorized $1.3 billion to finance exports of U.S.-manufactured communications satellites. (See below.)

Ex-Im-Backed GE Locomotives Sales to South Africa To Support 600 U.S. Jobs

Photo courtesy of GE Transportation

In FY 2011, Ex-Im Bank authorized a long-term loan guarantee of nearly $120 million to support a GE Transportation sale of locomotives to South Africa's Transnet Ltd., a large South African rail, port and pipeline company headquartered in Johannesburg.

The Bank also approved a preliminary commitment for approximately $200 million for the purchase of additional locomotives by Transnet. Ex-Im Bank financing is facilitating the partnership between GE Transportation Systems, Transnet, and Transnet Rail Engineering (TRE).

The contract with Transnet supports over 600 jobs at GE's factories in Erie and Grove City, Pa., in addition to other suppliers around the United States. 

Ten fully-assembled, energy-efficient GE locomotives and components for high-value locomotive kits have been shipped from GE's Erie manufacturing facility to TRE in South Africa. GE reports that three of its Model C30ACi locomotives can haul the same amount of freight as four older locomotives and save approximately 600,000 liters of fuel annually while lowering greenhouse-gas emissions.