Nov 26, 2010
Ex-Im Bank to support US firms supplying infrastructure inputs into SABack
Engineering|Africa|Caterpillar|CoAL|Diesel|Eqstra Holdings|Eskom|Export-Import Bank|Flow|GE|GE South African Technologies|Locomotives|PROJECT|Projects|Transnet|Africa|Nigeria|South Africa|United States|USD|Bank|Equipment|Flow|Logistics|Services|Transport|Environmental|Fred Hochberg|Infrastructure|Power|Locomotive|Locomotives|Kansas|Diesel
© Reuse this
The only other sub-Saharan African country identified for priority support is Nigeria.
Overall, during the fiscal year to September 30, the bank, which is the offi- cial export credit agency of the US and assists in financing the export of American goods and services to international markets, authorised a record $24,5-billion in loans, guarantees and insurance.
During a trade mission to South Africa last week, chairperson and president Fred Hochberg confirmed that the initial South African-linked transactions were likely to involve State-owned enterprises Transnet and Eskom.
Hochberg told Engineering News that both transactions were still in the preliminary stages, but that the Transnet-linked deal, which required Congressional approval, could be finalised in early December.
He said steps were being taken to approve financing of $300-million for the export of locomotives and locomotive kits to Transnet.
The transport utility is currently buying 100 diesel-electric locomotives from GE South African Technologies in a contract worth about R2,4-billion. But the freight logistics group has also indicated that it could buy between 75 and 100 locomotives a year over “a prolonged period” to reduce the average age of its locomotive fleet from 30 years to below 20 years.
Hochberg also confirmed that an initial review of Eskom’s R142-billion Kusile coal-fired power plant had opened the way for a possible transaction to finance the sale of engineering services being supplied by a US firm to the utility.
The review of the power plant was pursued under Ex-Im’s “enhanced due diligence process for high-carbon-intensity facilities”, and its board had subsequently decided to proceed with a full financial, technical and environmental review of the project.
Following that review, the transaction to finance the sale of services to Eskom by Black & Veatch, of Kansas, will return to the board for “final action”.
In the private milieu, Ex-Im recently gave final approval for $7-million in financing to support the sale of five new Caterpillar off-highway trucks and one new tractor to Eqstra Holdings, a JSE-listed capital equipment group.
“South Africa is a dynamic economy with a growing appetite for infrastructure development,” Hochberg said, adding that US companies and competitive Ex-Im financing would be available to support the infrastructure roll-out and other purchases by small and medium-sized businesses.
During his visit, Hochberg met with a wide range of private- and public-sector leaders, including representatives of South Africa’s Department of Public Enterprises and commercial banks, as well as Eqstra, Transnet and Comair.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Updated 1 hour 32 minutes ago Communications Deputy Minister Stella Ndabeni-Abrahams says the Department of Communications has the responsibility of ensuring that South Africans migrate from the analogue to digital world, with the help of media and government communicators. Deputy Minister...
Updated 2 hours 29 minutes ago South Africa’s financial institutions have been instrumental in funding the bulk of the projects under the Department of Energy’s multibillion-rand Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), delegates heard at the Solar Indaba, in...
Updated 2 hours 32 minutes ago The Department of Energy (DoE) reported on Thursday night that it had concluded its first “nuclear vendor parade workshop” with a delegation from the Russian Federation and that further meetings were planned with vendor countries such as France, China, South Korea,...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...