FOR IMMEDIATE RELEASE July 13, 2010
Phil Cogan (202-565-3200)
WASHINGTON, D.C. - The Board of Directors of the Export-Import Bank of the United States (Ex-Im) today approved proceeding to a full financial, technical and environmental review of an application for financing of U.S. exports to India's Sasan coal-fired power plant. The application is still subject to final review and approval.
On June 24th, the Board voted not to proceed with further review of the application for the Sasan project, based on environmental concerns. Subsequent to that vote, Reliance Power has executed a memorandum of understanding (MOU) with Ex-Im indicating Reliance's intent to develop a new 250 megawatt renewable energy facility, which when built will rank among the largest renewable energy projects in India.
The proposed $600 million Ex-Im loan guarantee will support the sale and export by Bucyrus International, Inc., located in Milwaukee, Wisc., of mining equipment to Sasan Power Ltd. for the 3,960 MW power plant in Madhya Pradesh, India. This proposed transaction for the Sasan project would support hundreds of jobs at Bucyrus and its sub-suppliers.
Today the Board reviewed new information about the project's CO2 emissions, which Reliance has agreed to cap at 850 grams of CO2 per kilowatt hour. Ex-Im also reviewed information about the effects of Ex-Im financing on U.S. energy exports and related employment. This data, along with the executed MOU with Reliance, led the Board to conclude that a full review of the project should proceed.
This vote paves the way for a full financial, technical and environmental due diligence process. Following that, the Board will vote on whether to approve the application.
We are pleased that Reliance is making this commitment to renewable energy, which allows us to sustain U.S. jobs and promote both conventional and renewable energy exports, said Ex-Im Bank Chairman and President Fred P. Hochberg.
Chairman Hochberg also noted that, this transaction was also made possible because of Anil Ambani's leadership and vision in diversifying Reliance Power's production portfolio of energy projects in India. Reliance Power's efforts will benefit the people of India and Ex-Im's efforts will benefit U.S. energy exporters.
Ex-Im, an independent, self-sustaining federal-government agency, provides export financing which strengthens U.S. export competitiveness, and helps create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal 2009, Ex-Im financing totaled $21 billion, and of that, small-business export financing reached $4.4 billion, nearly 21 percent of total authorizations.
In the first nine months of fiscal year 2010, the Bank authorized more than $17.4 billion in loans, guarantees and insurance - more than the total amount authorized in all of fiscal 2008. Small business authorizations to date this fiscal year totaled $3.2 billion. Ex-Im Bank financing has supported an estimated 150,000 U.S. jobs to date this fiscal year. For more information, see Ex-Im Bank's Web site at www.exim.gov.