US export finance boost for water and energy projects
US exports for renewable-energy, water and nuclear-power projects approved after 1 July 2009 are eligible for a maximum repayment term of up to 18 years under export financing provided by the Export-Import Bank of the United States (Ex-Im Bank).The longer repayment term may be applied to Ex-Im Bank's direct-loan or loan-guarantee financing in accord with agreements of the Organization for Economic Cooperation and Development (OECD) that permits export-credit agencies of OECD countries to offer enhanced terms for renewable-energy, water and nuclear-power projects. Financing for these projects is also eligible for more flexible definitions of repayment schedules.
A revised fixed-interest rate regime applies to the longer loan durations. The changes are in effect until 2013, when the agreements will be re-examined..
The OECD recently extended the maximum repayment term from 15 to 18 years and adopted the other changes to facilitate financing to these types of projects, which are associated with higher capital costs. Hydropower and nuclear-power projects also have longer construction periods than projects employing more conventional technologies.
The changes apply to financing for US exports to the following types of water projects: treatment and distribution of drinking water for human consumption, collection and treatment of residential and industrial wastewater, water recycling and treatment of water-related sludge. Also eligible are US exports associated with the following renewable-energy projects: wind, solar photovoltaic, solar thermal, hydroelectric, geothermal, ocean thermal, tidal and tidal-stream power, wave power and bio-energy..