- Region: Africa
- Export Loans
March 27, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on March 26 a buyer's credit agreement totaling up to EUR11.5 million (JBIC portion) with Teyma Gestión de Contratos de Construcción e Ingeniería, S.A., a subsidiary of Abengoa S.A. (Abengoa) in Spain, which controls the construction projects of the Abengoa. The loan is cofinanced with Tokyo Branch of Crédit Agricole Corporate and Investment Bank, with Nippon Export and Investment Insurance (NEXI) providing insurance for the cofinanced portion. The overall cofinancing amount reaches EUR19.1 million.
This loan provides funds required for purchasing equipment from Mitsui & Co. Plant Systems, Ltd. (MPS), which include osmosis membrane elements*1 made by Toray Industries, Inc. and high pressure pumps made by Torishima Pump Mfg. Co., Ltd., as the Abengoa constructs the country's largest seawater desalination plant (100 thousand m3/d) in Agadir, Morocco.
Abengoa is a leading engineering company for developing projects across the world especially has strengths in the clean energy sector such as water infrastructure, renewable energy and biofuel energy. This loan provides financial support for the export of seawater desalination plant-related equipment to the Abengoa by MPS, thereby contributing to maintaining and strengthening the international competitiveness of Japanese water-related industries.
This is also the first project in which JBIC supports a water-related project in Africa. The water desalinated in this plant will be supplied as drinking water in the Agadir area, and it is expected that it will contribute to industries in this area and an increase in the living standards. Further, based on the announcement made by the Japanese government to expand trade and investment in the African region in public-private cooperation in the 5th Tokyo International Conference on African Development (TICAD V), JBIC established "JBIC Facility for African Investment and Trade Enhancement" (FAITH)*2 to support accelerating growth led by the private sector in Africa and promoting infrastructure development. This loan is provided as financial support under FAITH.
As Japan's policy-based financial institution, JBIC will continue to provide financial support for Japanese companies' overseas deployment of water-related business by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 Reverse osmosis (RO) membrane has a semi-permeable membrane having holes of about 0.6nm, and when seawater is passed through RO membrane with high pressure, only water is obtained without passing through sodium ions and chlorine ions.
- *2 See Information on June 3, 2013.