EFIC supported Outotec with an export finance guarantee
Outotec Oyj of Finland (Outotec), a global leader in sustainable solutions for utilising natural resources, was turnkey contractor for the initial two stages of the development of a drinking water treatment plant, transmission mains and distribution systems in the Ampara district of eastern Sri Lanka.
Outotec’s Australian subsidiary, Outotec Pty Ltd, was awarded a contract with Sri Lanka’s National Water Supply and Drainage Board to undertake the third phase of the project.
The support of Export Finance and Insurance Corporation, the Australian Government’s export credit agency, was key to Outotec Pty Ltd winning the new contract. EFIC has provided an export finance guarantee to support a US$105.2 million loan by ANZ to the Government of the Democratic Socialist Republic of Sri Lanka to finance Phase 3 of the project.
Phase 3, officially called the Integrated Water Supply Scheme for the Un-served Areas of Ampara District, will establish a drinking water treatment plant, transmission mains, distribution systems and associated infrastructure to supply inland areas of the district. This builds on the infrastructure created under Phases 1 and 2 of the project, which established transmission mains and distribution systems mainly to the coastal areas of the Ampara district. The completed system will supply clean water to around 460,000 people.
‘From the start, EFIC’s export finance guarantees have were an integral part of the financing structure for this important project,’ said Outotec’s Managing Director for South East Asia Pacific, Neil Jagger.
EFIC and ANZ have worked with Outotec for more than a decade on this development, emphasising the value that export credit agencies such as EFIC contribute to meeting those financing needs that are beyond the limits of private market capacity.
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