Export Development Canada (EDC) has agreed to finance the construction of a combined cycle thermal power plant in Algeria by SNC-Lavalin.
EDC will provide over $190 million in financial guarantees for Canadian engineering services, procurement, and construction for the 825 megawatt combined cycle thermal power plant. The project will cost approximately $562 million.
Société Générale is acting as the lender of record for the project. Like EDC, US Eximbank will also provide approximately $192 million in financing guarantees to Société Générale. Germany’s export credit agency, Hermes, will act as a reinsurer to EDC’s guarantee for German exports totaling over $40 million, thus reducing EDC’s net exposure to less than $150 million.
“It was important to EDC to be involved in a project that is environmentally sound, supports the work of Canadian exporters such as SNC-Lavalin, and contributes positively to the development of Algeria,” says executive vice-president, Eric Siegel.
The project will employ combined cycle thermal power generation technology and run on natural gas-- the cleanest of fossils fuels— thereby maximizing fuel efficiency and minimizing environmental emissions.
This is the largest financial guarantee in which EDC has participated in Algeria. EDC concluded approximately $413 million of business in Algeria in 2003, more than any other country in Africa.
EDC provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets. Founded in 1944, EDC is a Crown corporation that operates as a commercial financial institution. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
