Ex-Im Bank supports U.S. exports to South Africa

Ex-Im Bank supports U.S. exports to South Africa    The U.S. Export-Import Bank has announced the first steps in the approval of financing for U.S. exports to key South African projects, including:
   ' The bank’s first-stage approval of support for the sale of locomotives to Transnet, a large South African rail, port and pipeline company majority-owned by the government.
   ' Its initial carbon review of Eskom’s Kusile coal-fired power plant. Eskom is South Africa’s national electric utility.
   “South Africa is a dynamic economy with a growing appetite for infrastructure development,” said Ex-Im Bank Chairman and President Fred P. Hochberg, during his Nov. 9-11 trade mission to South Africa. “That’s why it has been designated by Ex-Im as one of nine countries where we aim to increase transactions.
   'American companies and competitive Ex-Im Bank financing are available to meet South Africa’s infrastructure needs and to support other purchases by small and mid-size businesses,” he said.
   In addition to meeting with South African government and business leaders, Hochberg will sign a memorandum of understanding with the Export Credit Insurance Corp. (ECIC), South Africa’s official export credit agency. Under the agreement, the two agencies will exchange information on trade and business prospects to identify opportunities for cooperation, including co-financing opportunities in sub-Saharan Africa.
   Hochberg said that, after an initial review of the Kusile power plant project under Ex-Im Bank’s enhanced due diligence process for high carbon intensity facilities, the bank’s board has decided to proceed with a full financial, technical and environmental review of the project.
   After the full review, the transaction to finance the sale of engineering services to Eskom by Black & Veatch of Overland Park, Kan., will return to the board for final action. The bank noted the Kusile project has environmentally beneficial features including water conservation technology, a highly efficient boiler, pollution abatement technology, and carbon-capture-ready status.
   “By working together, we can help South Africa ramp up its energy production and infrastructure needs to meet the increased demand of its citizens,” Hochberg said. “We have the know-how to help them in migrating that energy generation toward cleaner, more renewable sectors going forward.”
   Hochberg also announced Ex-Im Bank’s first-stage approval of financing for the export of General Electric locomotives to Transnet, pending congressional notification of the bank’s intent to approve the transaction.
   Ex-Im Bank recently gave final approval for $7 million in financing to support the sale of five new Caterpillar off-highway trucks and one new tractor to Eqstra Holdings Ltd., a diversified leasing, industrial, construction and mining equipment importer and distributor. Eqstra subsidiary MCC Contracts (Pty) Ltd. will use the equipment.