Export Finance and Insurance Corporation (EFIC) and ANZ are providing ongoing financial support to an Australian company for the execution of a water supply project in Sri Lanka.
EFIC is the Australian Government’s export credit agency, helping Australian exporters with finance and insurance solutions to develop their business overseas.
The project involves the construction of a drinking water treatment plant, transmission mains and distribution systems in the Ampara district of eastern Sri Lanka.
Outotec Pty Ltd, the Australian subsidiary of Outotec Oyj of Finland (Outotec), a global leader in sustainable solutions for utilising natural resources is the turnkey contractor for the first two stages of the project.
Outotec has additionally 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 provided by ANZ to the Government of Sri Lanka as project financing for the third phase.
Officially known as the Integrated Water Supply Scheme for Un-served Areas of Ampara District, Phase 3 will establish a drinking water treatment plant, transmission mains, distribution systems and associated infrastructure to supply the inland areas of the 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 financing needs that are beyond the limits of private market capacity.
Outotec’s Managing Director for South East Asia Pacific, Neil Jagger says that the involvement of ANZ and EFIC from the start has been key to financing the critical project.
While Paul Richards, Global Head of Structured Export Finance at ANZ comments that they are pleased to work with EFIC again on the extension of the Ampara district project, EFIC’s Executive Director, Origination and Portfolio Management, Peter Field says that the project is a good example of how EFIC can work with a commercial bank to support the financing of Australian exports on terms that may exceed the bank’s risk appetite.