EFIC supports Outotec in water supply project in Sri Lanka
Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, and ANZ are providing ongoing support for the involvement by an Australian company in a drinking water treatment plant, transmission mains and distribution systems in the Ampara district of eastern Sri Lanka.
Outotec Oyj of Finland (Outotec), a global leader in sustainable solutions for utilising natural resources, has through its Australian subsidiary Outotec Pty Ltd been turnkey contractor for the first two stages of the project and has now signed a contract with the National Water Supply and Drainage Board of Sri Lanka to undertake Phase 3 of the project.
EFIC has guaranteed a loan of US$105.2 million which ANZ is providing to the Government of the Democratic Socialist Republic of Sri Lanka to finance the third phase of the project.
Phase 3, officially known as the Integrated Water Supply Scheme for 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. The initial phases established transmission mains and distribution systems mainly to the coastal areas of the Ampara district.
EFIC and ANZ have worked with Outotec for more than a decade on this important development, emphasising the value that export credit agencies such as EFIC bring to meeting those financing needs that are beyond the limits of private market capacity.
‘Phase 3 of the project will bring clean drinking water of an international standard to around 460,000 people’, said Outotec’s Managing Director for South East Asia Pacific, Neil Jagger. ‘From the start, the involvement of ANZ and EFIC has been key to financing this important project’.
‘Outotec is a valued client and we are pleased to work with EFIC again on the extension of the Ampara district project’, said Paul Richards, Global Head of Structured Export Finance at ANZ.
‘EFIC is delighted to continue our longstanding relationship with Outotec and ANZ’, said EFIC’s Executive Director, Origination and Portfolio Management, Peter Field. ‘This project is a good example of how EFIC can work with a commercial bank to support the financing of Australian exports on terms which may exceed the bank’s risk appetite’.