US independent federal agency Ex-Im Bank has signed a US$1 billion MoU with the Philippine Department of Energy with a view to matching development needs in the Philippines with innovative goods and services offered by American exporters.
More specifically, the MoU targets renewable-energy and LNG projects in the hopes of upgrading and expanding the Philippine energy supply in the wake of Typhoon Yolanda.
Export-Import Bank of the United States director Patricia Loui and Department of Energy undersecretary Raul B Aguilos signed the MoU at a ceremony in Manila last Wednesday.
“The agreement will channel much needed support to the Philippines from the American private sector and thereby boost jobs here at home,” says Ex-Im Bank chairman and president Fred P Hochberg. “The arrangement is a win-win for both our nations and evidences our deep ties and cooperation on numerous economic fronts.”
“Since 1993, Ex-Im Bank has provided US$1.3 billion in energy-sector finance to the Philippines, but we aim to outdo ourselves and target another billion with this memorandum of understanding,” says Patricia Loui. “Our expertise can contribute both to the renovation of current energy-production facilities and the construction of new ones.”
In 1994, Ex-Im Bank financed the first project-finance transactions in the Philippines for geothermal energy - Cebu Geothermal for $170 million and Mahanagdong Geothermal project for $211 million.
Ex-Im Bank is an independent federal agency that creates and maintains US 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 US goods and services. In the past fiscal year alone, Ex-Im Bank earned for US taxpayers more than $1 billion above the cost of operations.
In FY 2013, Ex-Im Bank approved more than $27 billion in total authorizations to support an estimated $37.4 billion in US export sales and about 205,000 American jobs in communities across the country. For the year, the bank approved a record 3413 transactions for small-businesses.