Ex-Im Bank Financing for Sub-Saharan Africa Exceeds $1 Billion for First Time

By Export-import Bank Of The United States, PRNE
Wednesday, May 25, 2011

WASHINGTON, May 26, 2011 -


The board of directors of the Export-Import Bank of the United States
(Ex-Im Bank) voted today to approve an $805.6 million direct loan to South
state-owned electric power utility, Eskom, Limited. That action,
plus today's approval for over $59 million to enable Rwanda's RwandAir
Express to buy Boeing aircraft, brings Ex-Im Bank's current fiscal year
financing in sub-Saharan Africa to nearly $1.5 billion, nearly double the
previous one year record of $812 million set during the fiscal year ending
last September 30th.

Also contributing to this year's record support for sub-Saharan Africa
buyers of U.S. goods and services was Ex-Im financing for locomotive and
steel coil sales to South Africa, crop dusters to Kenya, poultry equipment to
Uganda, auto parts to Nigeria, and aircraft to Angola.

"Ex-Im Bank financing of U.S. export sales to sub-Saharan Africa
(www.exim.gov/products/special/africa/index.cfm) represents our
commitment to the region," said Fred P. Hochberg, chairman and president of
the Bank. "The world is rebuilding its critical infrastructure, and these
types of opportunities are available to U.S. companies in developing areas of
the world. We are ready to finance American exporters to win those sales and
keep Americans working."

"I think Ex-Im understands the opportunities that exist in Africa and is
enlarging its footprint there," said Ebrahim Rasool, South Africa's
ambassador to the United States. "Moreover, entities like Eskom understand
that they need to put forward proposals which are defensible both financially
and environmentally, and that is where this transaction was born. We thank
Ex-Im for approving the Eskom financing, as well as the Bank's vision and
commitment to South Africa."

The Eskom power plant financing will support Eskom's purchase of
engineering and construction management services from Black & Veatch
International of Overland Park, Kansas, and will be used to construct the
Kusile facility located in the Emalahleni area of the Mpumulanga Province.
Hundreds of highly-skilled American senior engineers and support personnel in
Ann Arbor, Mich., Raleigh, N.C. and Kansas City will be employed by Black &
Veatch each year during a five year period.

South Africa is one of nine countries identified by Ex-Im Bank as
offering the greatest export sales opportunities to U.S. companies. In
winning this contract with the Bank's support, Black & Veatch overcame
competition from several major European engineering companies. The Kusile
plant will consist of six 800 MW units, for a total capacity of 4,800 MW. It
is the second of two plants being constructed by Eskom in order to meet the
country's increasing demand for electric power.

The Kusile plant is designed with advanced technology and equipment,
including highly efficient supercritical boilers. Eskom undertook a
comprehensive environmental assessment for the project, and a number of
environmental safeguards, including scrubbers to control sulfur dioxide and
filtering equipment to minimize particulate emissions were included in the
plant's design. Notably, Kusile will be the first coal-fired power plant in
South Africa to include sulfur dioxide scrubbers. To help conserve water, the
plant will use an air cooling system. The plant also is designed to be carbon
capture and sequestration ready, which means it is configured in a way that
will facilitate subsequent installation of equipment to capture and transport
carbon emissions to a permanent storage location.

Ex-Im Bank financing supports hundreds of U.S. jobs, and also brings
assurances of compliance with its environmental and social guidelines,
including those for high intensity carbon projects. During its due diligence
process, Ex-Im Bank met on several occasions with officials of environmental
non-governmental organizations and project stakeholders to address their
concerns relating to the potential environmental and social impacts of the
Kusile project. Ex-Im Bank took into account all of the information and
comments it received from these meetings on the project's potential
environmental and social impacts.

The application to finance the Kusile project underwent a review that
focused on aspects related to its carbon dioxide production, and South
long-range goals to reduce its carbon dioxide production. Eskom, as
a state-owned energy enterprise, has announced its goal to significantly
reduce its long-term dependence on coal by 2025.

Included in the Bank's Carbon Policy
(www.exim.gov/products/policies/environment/carbon_policy.cfm) is
enhanced due diligence and improved transparency in the tracking and
reporting of CO2 emissions from projects that the Bank supports. No other
export credit agency tracks or discloses this information to the public. The
board took its vote after considering the results of a complete financial,
technical and environmental review of the project.


Ex-Im Bank is an independent federal agency that helps create and
maintain U.S. jobs by filling gaps in private export financing at no cost to
American taxpayers. The Bank provides a variety of financing mechanisms,
including working capital guarantees, export-credit insurance, and financing
to help foreign buyers purchase U.S. goods and services. By charging fees and
interest on all loan-related transactions, Ex-Im Bank is self-sustaining and
is able to cover all operation costs and potential losses while also
producing revenue. The Bank has generated $3.4 billion for U.S. taxpayers
over the past five years.

In fiscal year 2010, Ex-Im Bank authorized a record high of approximately
$24.5 billion in loans, guarantees and insurance (including more than $5
in authorizations for small businesses), supporting an estimated
230,000 American jobs. For the first half of the current fiscal year, FY
2011, Ex-Im completed $13.4 billion in total authorizations. This supported
$15.9 billion in exports and more than 115,000 U.S. jobs, a 14 percent
increase in jobs supported over the first half of 2010. These strong
financial results put the Bank on a path to its third consecutive
record-breaking year. For more information, visit Ex-Im Bank's Web site at

Phil Cogan or Maura Policelli, +1-202-565-3200

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