FOR IMMEDIATE RELEASE January 4, 2006
Linda Formella (202) 565-3200
WASHINGTON, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) is offering export financing on repayment terms of up to 15 years for U.S. exports of goods and services to be used in hydroelectric power projects that are in compliance with Ex-Im Bank's Environmental Procedures and Guidelines. (The full text of this document is available on Ex-Im Bank's Web site at //www.exim.gov/generalbankpolicies/environment/environmental-procedures-and-guidelines.cfm). The longer repayment terms are available in accord with an agreement of the Organization for Economic Cooperation and Development (OECD) that permits export credit agencies of OECD countries to offer enhanced terms for renewable energy and water projects.
The 15-year repayment term is also available for U.S. exports for the following renewable energy projects: wind, solar photovoltaic, solar thermal, geothermal, ocean thermal, tidal and tidal stream power, wave power, and bio-energy. Also eligible for the 15-year term are U.S. exports for water and wastewater projects.
Ex-Im Bank's offering of the 15-year repayment term for hydropower projects is a significant enhancement for U.S. exporters in this sector, said Ex-Im Bank Board Member Linda Conlin, who heads Ex-Im Bank's Environmental Exports Program. Historically, Ex-Im Bank has provided financing for many of the world's prominent hydroelectric projects. We believe that this enhancement further strengthens the ability of U.S. exporters to compete internationally, and it will help to support highly skilled U.S. jobs in these industries.
In response to recommendations from U.S. renewable energy and water industries, Ex-Im Bank encouraged the OECD to permit export credit agencies to offer the extended repayment terms for these projects. In June 2005, the OECD agreed to extend the maximum repayment term for renewable energy and water-related projects from the previous limits to 15 years. The OECD agreement permits the 15-year term for renewable energy and water-related projects for a two-year trial period beginning July 1, 2005. The OECD agreed to permit the 15-year term for hydropower projects for a two-year trial period beginning December 1, 2005.
Ex-Im Bank, the official export credit agency of the United States, is in its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance and direct loans. In fiscal year 2005, Ex-Im Bank authorized $14 billion in transactions supporting almost $17.9 billion of U.S. exports to markets worldwide. For more information, visit www.exim.gov.