FOR IMMEDIATE RELEASE March 5, 2000
Nancy Publicover (202) 565-3200
Export-Import Bank of the United States (Ex-Im Bank) Chairman James A. Harmon signed a Memorandum of Understanding pledging cooperation on the financing of power projects beneficial to both India and the United States. Ex-Im Bank expects that up to $500 million in new transactions will be financed as a result of the initiative.
Indian buyers and US exporters of energy technologies are looking for new sources of financing for power projects that will contribute to economic and job growth in both countries while protecting the environment, Harmon said.
Harmon signed the memorandum during a six-day trade mission to India February 19-25 to explore ways to partner with India's government, business and banking sectors to facilitate more trade between India and the United States.
The agreement signed by Ex-Im Bank and the Power Finance Corporation of India could lead to sharing of information on all aspects of power generation in India, including regulation, operations, management, finance, independent power, telecommunications, strategic planning, and other necessary areas of expertise.
PFC would identify power projects appropriate for Ex-im Bank financing, focusing on high efficiency and clean power technologies, goods and services. The technologies may include environmental and efficiency upgrades, computerization, generation and transmission, distribution systems, hydro- and thermal-generation, and captive and co-generation plants.
Ex-Im Bank would work with potential borrowers, lenders and US suppliers to expedite processing of applications for financing the export of environmentally beneficial technologies, goods and services. Transactions approved under the agreement will enjoy the most favorable terms permitted under the Organization for Economic Cooperation and Development (OECD) guidelines and Ex-Im Bank's Environmental Export Program.
Ex-Im Bank is open for short-, medium- and long-term export financing in India's public and private sectors. Ex-Im Bank is an independent U.S. government agency that helps finance the sale of U.S. exports primarily to emerging markets throughout the world, by providing loans, guarantees, and insurance. During fiscal year 1999, Ex-Im Bank supported nearly $17 billion in U.S. exports.