The longer repayment terms are available in accord with an agreement of
the Organization for Economic Cooperation and Development (OECD) that
permits export credit agencies of OECD countries to offer enhanced terms
for renewable energy and water projects.
Eligible for the 15-year repayment term are U.S. exports for the renewable
energy projects including wind, solar photovoltaic, solar thermal,
geothermal, ocean thermal, tidal and tidal stream power, wave power, and
bio-energy. Also eligible for the 15-year term are U.S. exports for water
and wastewater projects.
"Ex-Im Bank's offering of the 15-year repayment term for U.S. renewable
energy and water-related exports is a significant enhancement for U.S.
exporters in these sectors," said Ex-Im Bank Board Member Linda Conlin,
who heads Ex-Im Bank's Environmental Exports Program. "We believe that
this enhancement further strengthens the ability of U.S. environmental
exporters to compete internationally, and it will help to support highly
skilled U.S. jobs in these industries."
"This action will allow U.S. environmental technology firms to compete
successfully in the global arena by making water and wastewater projects
more commercially viable and by reducing the need for tied aid that
foreign governments have used in the past to eliminate competition," said
Dawn Kristof, president of the Water and Wastewater Equipment
Manufacturers Association Inc.
"With this kind of forward-thinking government leadership, the United
States will continue to be a net exporter of solar energy," said Rhone
Resch, president of the Solar Energy Industries Association. "Progressive
export financing terms are essential for U.S. companies to remain
competitive in the global solar industry, which is currently growing at 45
percent each year. We applaud Ex-Im Bank for its initiative in supporting
a robust U.S. solar industry."
In response to recommendations from U.S. renewable energy and water
industries, Ex-Im Bank encouraged the OECD to permit export credit
agencies to offer the extended repayment terms for these environmental
exports. In June 2005, the OECD agreed to extend the maximum repayment
term from the previous limits for these sectors to 15 years. The OECD
agreement permits the 15-year term for a two-year trial period beginning
July 1, 2005.