The Export-Import Bank of the United States (Ex-Im Bank) has recently approved a pair of direct loans to two wind power projects in Peru for the acquisition of wind turbines required to power the Andean nation.
The financing of almost US$65 million in total for Marcona and the Tres Hermanas wind projects represents Ex-Im Bank's first renewable-energy transactions in Peru.
According to bank estimates derived from U.S. Departments of Commerce and Labor data and methodology, this funding will support approximately 800 U.S. jobs in Kansas and Iowa, where turbines are manufactured by Siemens Energy Inc.
"These transactions reflect our continued commitment to increasing U.S. renewable energy exports while supporting good-paying jobs here at home," said Ex-Im Bank Chairman and President Fred P. Hochberg.
During this fiscal year alone, Ex-Im Bank has approved financing for five wind farm projects, and it is looking to do more in the near future.
Besides, the independent federal agency explained this financing also helps ensure that the turbines helping to power Peru are made in the U.S. by American workers, rather than in a competing country.
The said turbines are destined for use in the Marcona wind project and the Tres Hermanas wind project, which are located in close proximity in the Ica region of southern Peru and are estimated to yield an aggregate 129 Mega Watts.
Repayment terms are 17.3 years for the Marcona project and 16.6 years for the Tres Hermanas project, respectively.
Siemens Energy Inc. is a U.S. subsidiary of Siemens AG, an engineering company that operates in the industry, energy, healthcare, and infrastructure and cities sectors.
The company reported revenue of US$5.9 billion in exports and employs approximately 52,000 people throughout all 50 states and Puerto Rico.
Mark Albenze, CEO of Siemens' Onshore Wind Americas business, said they have able to successfully export their equipment to Americas wind projects in Canada, Chile, Brazil and now with Ex-Im Bank's help, Peru.
It should be noted as well that in fiscal year 2013 alone, Ex-Im Bank authorized US$257 million to support renewable energy exports, primarily to Central and Latin America.
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers.
The Bank provides a variety of financing mechanisms, including working-capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
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Published: 8/28/2014