Following G7, Export-Import Bank of the United States Advancing Partnership for Global Infrastructure & Investment
WASHINGTON – The G7 Summit concluded in Japan yesterday in part with the White House announcing several commitments in support of President Biden’s flagship Partnership for Global Infrastructure and Investment (PGII). Among the announcements made are several active and prospective deals and ongoing engagement of the Export-Import Bank of the United States (EXIM) to advance digital and energy infrastructure worldwide and support U.S. exports under the China and Transformational Exports Program and in sub-Saharan Africa:
“EXIM’s mission to support U.S. jobs through expanded exports aligns squarely with President Biden’s Partnership for Global Infrastructure and Investment,” said EXIM President and Chair Reta Jo Lewis. “Low- and middle-income countries require robust infrastructure investments to strengthen their economies and EXIM stands ready with our goods and services to continue to help U.S. exporters compete globally with their world-class products.”
Investments in the Lobito Economic Corridor in Africa:
The United States is supporting the development of the Lobito Corridor with an initial investment in a rail expansion that may become the primary open access transportation infrastructure connecting the Democratic Republic of the Congo (DRC) and Zambia with global markets through Angola. PGII is actively pursuing additional opportunities to connect the initial Lobito Corridor investments across the continent, to Tanzania and, ultimately, the Indian Ocean.
The Export-Import Bank of the United States (U.S. EXIM) approved for Congressional notification an initial $900 million in financing for two solar projects that were announced at the 2022 G7 Summit by the Government of Angola, U.S. firm AfricaGlobal Schaffer, and U.S. project developer Sun Africa. Together, the projects will generate over 500 megawatts of renewable power; provide access to clean energy resources across Angola; help Angola meet its climate commitments; and support exports of U.S. solar panels, connectors, switches, sensors, and other equipment. The EXIM Board will give final consideration to the project on June 1.
Expanding on the International Development Finance Corporation’s (DFC) existing financing for telecom provider Africell in the DRC, Sierra Leone, and the Gambia, U.S. EXIM is continuing its due diligence for a new transaction supporting the expansion of wireless services, and USAID is announcing a digital payments initiative with Africell in Angola. Together, these projects aim to provide fast and reliable internet to individuals and companies across the Lobito Corridor and expand access to mobile money services in rural areas.
Memorandum of Understanding (MOU) with Tanzania:
During the Vice President’s recent trip to the region, U.S. EXIM and the Government of the United Republic of Tanzania announced a MOU to facilitate up to $500 million in U.S. export financing to Tanzania. The MOU will support PGII projects and investments by deepening the commercial relationship between the two countries and exports in a variety of sectors, including infrastructure, transportation, digital technology, climate and energy security, and power generation and distribution projects.
Supporting Small Modular Reactor (SMR) progress:
Building on previous U.S. Government support to develop Romania’s first-of-a-kind SMR plant using U.S. firm NuScale Power technology and Fluor Corporation engineering and construction services, the U.S. EXIM issued a Letter of Interest for potential support for up to $99 million to RoPower Nuclear S.A. for design studies – alongside expressions of interest from public and private partners from Japan, Republic of Korea, and United Arab Emirates – together amounting to up to $275 million in early-stage support. These commitments, along with new pledges by Romania, support procurement of long lead materials, completion of the Front-End Engineering and Design (FEED) analysis, provision of project management experts, and regulatory site activities. In addition, the DFC and the U.S. EXIM also issued letters of interest for potential support of up to $1 billion and $3 billion, respectively, for project deployment. When built, the SMR will pave the way for new innovative energy technologies, accelerate the clean energy transition, create thousands of jobs, and strengthen European energy security while upholding the highest standards for nuclear safety, security, and nonproliferation.
Expanding 5G Digital Access:
The United States is working with the Government of Costa Rica on enhancing digital security and connectivity in the country. U.S. EXIM has issued a letter of interest to provide financing to support the Costa Rican Electricity Institute’s 5G development.
The Export-Import Bank of the United States (EXIM) is the nation’s official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Since 1992, EXIM has generated almost $9 billion for the U.S. Treasury for repayment of U.S. debt. Learn more at www.exim.gov.