Ex-Im Approves $64.9 Million in Financing for Water-Supply System in Sri Lanka
July 24, 2012
(Ex-Im Bank)
WASHINGTON, D.C. - For the first time since 2008, the Export-Import Bank of the
United States (Ex-Im Bank) has authorized a sovereign transaction – a $64.9
million, 12-year direct loan – to the Democratic Socialist Republic of Sri Lanka
to finance the design and construction of the Badulla, Haliela and Ella
Integrated Water Supply System by Tetra Tech of Pasadena, Calif.
The transaction will support approximately 400 American jobs, according to U.S.
government estimates, including those at Tetra Tech's design centers across the
United States, particularly in Denver and Longmont, Colo.; Morris Plains, N. J.;
Langhorne, Pa.; and Fairfax, Va.
The water-supply project will integrate new and rehabilitated treatment plants,
storage tanks, pumping stations, a new dam and impoundment reservoir, new and
existing water intake structures, nearly 50 kilometers of transmission pipeline,
and more than 100 kilometers of distribution pipeline. Once in place, the
water-supply system will help the government of Sri Lanka to realize its
objective of providing safe drinking water to 85 percent of the population, in
line with the United Nations Millennium Development goals.
"Not only does this transaction stimulate U.S. job creation, but it also
contributes directly to the quality of life in Sri Lanka," said Ex-Im Bank
Chairman and President Fred P. Hochberg. "This project will bring potable water
to thousands of those who need it, and that is a success."
According to Sri Lankan government estimates in 2009, 79.5 percent of the
population had access to water supplies, but only 37.5 percent of the
population, or 8.06 million people, could access potable water through
pipe-borne systems. In some regions, it was estimated that more than 80 percent
of the water supply was contaminated. Much of the contamination was attributed
to agrichemical runoff and saltwater intrusion, the latter of which resulted
from the 2004 tsunami when four tidal waves inundated part of the island's
freshwater aquifer and well network with seawater.
"This is the first full-scale, design-build water-supply project that Ex-Im Bank
has financed for an international client," said Dan Batrack, Tetra Tech's
chairman and CEO. "Tetra Tech is proud to support the government of Sri Lanka in
this important effort to bring safe drinking water to its people. This
transaction supports high-end technical jobs in the United States and allows us
to bring our best water services where they are needed most."
Founded in 1966, Tetra Tech provides consulting, engineering, and construction
services related to waterways, harbors, and coastal areas. Over the past 40
years, the company has substantially increased the size and scope of its
business and expanded its service offerings through a series of acquisitions and
internal growth. The company employs approximately 13,000 people around the
globe.
Sri Lanka accounted for approximately $20 million of the Bank's worldwide credit
exposure as of the end of FY 2011.
The Bank's Environmental Export Program includes support for U.S. goods and
services to international water projects, and its enhanced financing includes
repayment terms up to 18 years.
Ex-Im Bank's financing has supported the sale of approximately $270 million in
water-related exports since FY 2009.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.