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US EXIM Bank approves loan for Mozambique LNG project – AIM report
10:30 CAT | 29 Sep 2019
Mozambique LNG (for illustration purposes only)
The board of directors of the Export-Import Bank of the United States (EXIM) on Friday voted unanimously to authorise a direct loan of up to five billion US dollars to support the export of U.S. goods and services for the development and construction of the liquefied natural gas (LNG) project located on the Afungi Peninsula in Palma district, in the northern Mozambican province of Cabo Delgado.
According to an EXIM press release, this financing “will support U.S. exports of goods and services for the engineering, procurement, and construction of the onshore LNG plant and related facilities”.
The transactions, it adds, will support an estimated 16,400 American jobs over the five-year construction period, and “through follow-on sales, thousands of additional jobs are likely to be generated across the United States”.
The release clams that “through fees and interest earned, the transaction is also anticipated to generate more than 600 million dollars in revenue for U.S. taxpayers, according to EXIM projections”.
Just in: EXIM bank approves $5 billion to finance U.S. exports to Mozambique LNG project https://t.co/2fVTActPDe#Mozambique #USA #Gas #LNG #Africa pic.twitter.com/bfONr6Zgcy
— Club of Mozambique (@clubOmozambique) September 27, 2019
The EXIM Chairperson, Kimberly A. Reed, said “Private financing was not available for this project given its size, complexity, and risk — necessitating support from EXIM. We have been told that China and Russia were slated to finance this deal before our EXIM board quorum was restored by the U.S. Senate. The project now will be completed without their involvement and instead with “Made in the USA” products and services. This is a win for our nation.”
He claimed that the LNG project “will directly support President Trump’s Prosper Africa Initiative to increase America’s trade with Africa. This project builds on the good work that EXIM’s team has done in supporting American small businesses, which is a key priority”.
A second EXIM board member cited by the release, Judith D. Pryor. said, “In 2010, there were 400 million people living in African urban areas. That number is expected to reach 1.3 billion by 2050. They’re going to need power to grow their economies, fight poverty, and improve the health and well-being of their communities. Without proper storage-capacity solutions for intermittent power, gas is the best solution to pair with renewable-energy sources. With EXIM’s involvement, not only will this project adhere to high environmental and social standards, this project stands a better chance of providing the stimulus that Mozambique needs to jump-start its economy and improve the lives of its people.”
Trump’s Secretary of Commerce, Wilbur Ross, who seats ex officio on the EXIM board, said, “With the backing of the Trump Administration, U.S. investment in Africa has taken on a new urgency. This critical project is not only a win for American companies and workers, supporting over 10,000 jobs in the United States but also for the people of Mozambique as well.”
The project on the Afungi Peninsula envisages the construction of two factories producing 12.8 million tonnes of LNG a year.
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Source: AIM
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