MEDIA RELEASE PR40440
Ex-Im Bank Approves Preliminary Review of Export Financing Application for India's
Sasan Power Plant
WASHINGTON, July 15 /PRNewswire-AsiaNet/ --
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
SOURCE: Export-Import Bank of the United States
CONTACT: Phil Cogan of Export-Import Bank of the United States, +1-202-565-3200
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