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U.S. Ex-Im Bank signs $1 billion MOU with Philippines DOE

Chevron geothermal power plant Tiwi, Albay, Philippines (source: flickr/sherwin_magayanes)
Alexander Richter 22 Mar 2014

Export-Import Bank of the U.S. and the Philippines Department of Energy sign a $1 billion MOU for financing of energy projects in the country with U.S. suppliers and support. In the past Ex-Im Bank has financed large scale geothermal projects e.g. for Cebu and Mahanagdong plants.

Patricia Loui, board of director for the Export-Import Bank of the United States (Ex-Im Bank), and Raul B. Aguilos, under-secretary for the Department of Energy (DOE) of the Republic of the Philippines, signed a $1 billion memorandum of understanding (MOU) at a ceremony in Manila Wednesday this week.

“The agreement will channel much needed support to the Philippines from the American private sector and thereby boost jobs here at home,” said Export-Import 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.”

According to the MOU, Ex-Im Bank and the DOE will exchange information with an eye 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.

“Since 1993, Ex-Im Bank has provided $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,” said Director 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.”

Source: press release via Ad Hoc News