Potential Transactions Would Support Key EXIM “Program on China and Transformational Exports” Sector, Further EXIM’s Commitment to Sub-Saharan Africa and Prosper Africa Initiative
FOR IMMEDIATE RELEASE November 5, 2020
Office of Communications (202) 565-3206
WASHINGTON – The Export-Import Bank of the United States (EXIM) Board of Directors today unanimously voted to notify the U.S. Congress, pursuant to the law, of two potential authorizations totaling $229.7 million to support an estimated 600 American jobs, primarily in Texas, by rehabilitating, designing, and constructing water treatment facilities in Ghana.
The first potential authorization would be a direct loan to Ghana’s Ministry of Finance to support an important dam rehabilitation project for Ghana water. The existing facility accounts for about 80 percent of the potable water supply to the capital city of Accra. The loan would allow Ghana to engage the world-class design services of AGEISS, Inc. EXIM estimates the transaction would support 300 U.S. jobs across several states, including Texas.
The second potential authorization would be a direct loan to Ghana’s Ministry of Finance to design and construct a water treatment plant. If ultimately approved, the loan would support AGEISS’ engagement in a water supply expansion project, which would increase the supply of potable water to Begoro and surrounding towns. EXIM estimates the transaction would support 300 U.S. jobs across several states, including Texas.
The primary reason EXIM support is needed in each of these cases is that commercial lending is unavailable. EXIM has decades of good experience with Ghana and a good working relationship with its government, and EXIM staff finds that a reasonable assurance of repayment exists.
Both transactions also would advance three of EXIM’s key initiatives.
First, the potential transactions—as the first EXIM “Program on China and Transformational Exports” (China Program) water treatment and sanitation transformational export projects—would help level the playing field for AGEISS against foreign competition, especially the People’s Republic of China, which is active in Ghana’s water sector as well as in other sectors in Ghana and the rest of Africa. The U.S. Congress—as part of the EXIM’s historic 2019 Congressional reauthorization—established EXIM’s China Program to support the extension of loans, guarantees, and insurance to advance the comparative leadership of the United States with respect to the People’s Republic of China, or support United States innovation, employment, and technological standards, through direct exports in ten transformational export categories, including water treatment and sanitation.
Second, the potential transactions would further EXIM’s commitment to sub-Saharan Africa. EXIM’s Charter states that EXIM’s Board of Directors shall take measures, “consistent with the credit standards otherwise required by law, to promote the expansion of the Bank’s financial commitments in sub-Saharan Africa.”
Third, the potential transactions would support EXIM’s engagement in Prosper Africa, the Trump Administration’s whole-of-government effort to promote economic growth and opportunity for the mutual benefit of the American people and our African partners by deepening U.S. trade and investment partnerships in Africa. The EXIM Sub-Saharan Africa Advisory Committee, which, as required by Congress, advises the EXIM Board of Directors “on the development and implementation of policies and programs,” also has underscored the importance of the agency’s engagement in sub-Saharan Africa through Prosper Africa and the EXIM’s new China Program.
“The United States and Ghana have a deep friendship and longstanding relationship based on shared values, and I am proud to vote to notify the U.S. Congress about these important potential transactions to support clean water in Ghana and, at the same time, 600 U.S. jobs here at home,” said EXIM President and Chairman Kimberly A Reed. “I know first-hand that EXIM has an important role to play in Ghana, as well as throughout sub-Saharan Africa, when it comes to supporting important transformational export sectors like water treatment and sanitation, including technologies and infrastructure to reduce contaminants and improve water quality. I thank our EXIM team for presenting these potential transactions to our EXIM Board of Directors today.”
“The Weija project will restore this essential piece of infrastructure to its full capacity and help supply approximately 80 percent of the capital region with clean drinking water, while the Begoro project is expected to provide potable water to 140,000 Ghanaians in the Fanteakwa District,” said EXIM Board Member Judith D. Pryor. “As the Board Member running point on Sub-Saharan Africa, I am pleased to notify Congress of EXIM’s consideration of these projects, which will enhance quality of life and health outcomes for so many Ghanaians while also supporting American exports.”
“EXIM’s participation in this 15-year project helps support humanitarian efforts to provide clean water to people in Ghana, and reinforces our commitment to working with countries throughout sub-Saharan Africa,” said former Congressman and EXIM Board Member Spencer T. Bachus.
At the conclusion of the Congressional notification period, the EXIM Board may give final consideration to the transactions. Both transactions were introduced to EXIM and AGEISS by Trinity International, Inc. of Potomac, Maryland.
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency’s authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov.