• Business opportunities available across the globe to utilize line of credit by Exim Bank

BUSINESS BUSINESS OPPORTUNITIES OPPORTUNITIES AVAILABLE ACROSS AVAILABLE ACROSS THE GLOBE TO THE GLOBE TO UTILIZE LINE OF UTILIZE LINE OF CREDIT BY EXIM CREDIT BY EXIM BANK BANK

On behalf of the Indian government, the ExportImport Bank of India (Exim Bank) has extended a line of credit (LOC) to Africa. Exim Bank now has 269 LOCs in operation, covering 62 countries in Africa, Asia, Latin America, and the Commonwealth of Independent States (CIS), with credit commitments totaling USD 26.64 billion, to fund India’s exports.

LINES OF CREDIT (LOC) is a proactive mechanism to share India’s Development Experience with Partner Countries. Exim Bank extends and operates LOCs on behalf of the Government of India. As on February 28, 2021, 313 Lines of Credit, covering 64 countries in Africa, Asia, Latin America, CIS and the Oceania, with credit commitments of USD 31.58 billion.

SUCCESS STORIES UNDER LOCS

SENEGAL: Exim Bank has extended an LOC of USD 27.50 mn to the Government of Senegal for Rural electrification project. The project scope also includes Solar Electrification in 62 villages, under which there are a total 1,750 solar connections.

NIGER: A project valued USD 15.67 million for setting up a 7 MW solar PV farm was financed under an LoC to the Government of Niger and completed in 2018. The project has helped Niger to meet the needs in electricity of its rural population thereby empowering the socio-economic growth of rural areas.

COTE D’IVOIRE: GOI has extended a LoC of USD 25 .50 million to the Government of Cote d’Ivoire for financing the Mahatma Gandhi IT and Biotechnology Park in Cote d’ivoire. The project is a dedicated Free Trade Zone (FTZ) for IT & Biotechnology. The project has given the first computer assembling line in the country. Computer assembling line is of paramount importance under the Government of Cote d’Ivoire’s One Citizen, One Computer, One Internet Connection’ program launched in 2015. The IT park is the first step in GO -CIV’s plan to build a Green Smart City for employment for 40 ,000 citizens and attract USD 2 billion of investments in the

ICT & Biotechnology sector.

ESWATINI [SWAZILAND]: GOI extended a LOC of USD 37.90 million to the Government of Swaziland (GOS) for Agricultural Development and Mechanization of Agriculture in Swaziland. The project aimed to ensure sustainable food security in the target areas of Swaziland by enhancing Maize farming system productivity and capacity building of the local farmers through mechanized and scientifically designed farming techniques.

GHANA: Seat of the Government and Presidency (LOC of USD 60 million)

GAMBIA: National Assembly building (LOC of USD 16.8 million)

TANZANIA: LOC of USD 178 million : Water treatment plant. Upper Ruvu water treatment plant to increase supply from 80 to 200 MLD. Potable water to 7,00,000 people in Dares-Salaam in Phase-I

MOZAMBIQUE: LOC of USD 19.72 million on rural drinking water development project. Rural water coverage of the respective provinces has increased from 30% to 50%. Project has impacted the lives of 824,500 people directly benefiting from gaining improved access to clean water. Clean water sources have helped the local community in combating water borne diseases such as cholera, chronic diarrhea and improved their standards in health, hygiene and sanitation. This was executed by Southern Borewells Pvt. Ltd.

ZAMBIA: The Tata Group was among the first Indian companies to enter the African market. The vehicles were procured by Govt. of Zambia for its various departments, which includes – Zambia Police, Zambia National Services, and the Zambia Defence Forces. The supply of vehicles has majorly improved the Police presence and patrolling all over the country, even in far flung remote areas. 4X4 Pick-ups, trucks, buses and spare parts were supplied by Tata Motors Ltd., Mumbai, under the GOI-supported LOC of USD 10 mn to the Government of Zambia.

Sudan: Um Dabakir Power Station (Kosti), a 4x125 MW combined cycle power plant set up under a Line of Credit of USD 350 million extended by the Exim Bank of India. It is the largest thermal power plant commissioned in Sudan. The power plant is contributing to one-sixth of the total power demand of Sudan. The electricity generated from the plant is also supplied to sugar and cement factories. The project has been executed by BHEL. USD 80 million were extended to the Government of Rwanda for financing the 28 MW Nyabarongo Hydro-power project in Rwanda. The project is one of Rwanda’s biggest hydroelectric power plants and caters to 25% of total electricity demand of Rwanda. Project executed by Bharat Heavy Electricals Ltd. (BHEL) & Angelique International Ltd.

Gaurav Singh Bhandari, Chief General Manager, Exim Bank have share most of the data information as follows:

INDIAN DEVELOPMENT AND ECONOMIC ASSISTANCE SCHEME [IDEAS] GUIDELINES

Rwanda: Two LOCs aggregating Ministry of Finance, Government of

India, on December 7, 2015 revised the Guidelines on LOCs. The revisions reflect major changes pertaining to:

• Terms of credit • Mandatory DPR • Pre-qualification by Exim Bank • Vetting of tender documents and draft contract by Exim Bank • Vetting of bid evaluation report by

Exim Bank • Appointment of PMC/EPC contractor through prequalification & tendering • Increased frequency of monitoring of projects

Revised Guidelines available at www. eximbankindia.in/lines-of-credit

REQUIREMENT UNDER THE PRESENT IDEAS LOC GUIDELINES

Eligibility: The participation is limited to Indian entities registered in India and/ or incorporated/ established under any law in force in India. LOC PROCESS

• Project identification and preparation of project proposal/ feasibility study; • Review and approval of the project proposal; • Offer of the loan, acceptance and execution of LOC agreement; • Preparation of the Detailed Project

Report (DPR); • Prequalification of Indian companies; • Selection of the Indian contractor through bidding process by the

LOC Recipient; • Coverage of contract under the

LOC; • Project implementation, monitoring and supervision; • Socio-economic impact assessment after project completion; • The lessons learnt from the impact assessment/evaluation act as a feedback for the preparation, review and implementation of future projects; This process forms the ‘project cycle’

Requirement as to import of goods and services from India: • These loans are for project exports and the import of goods and services from India. • Goods and services (including consultancy services) for minimum 75% value of the contracts covered under these loans must be sourced from India. (A relaxation of 10% may be considered on a case-tocase basis) • LOCs may finance upto 100% value of contract on FOB/CFR/ CIF/CIP basis. • Soft loans under the scheme shall be free from all kinds of taxes and duties of any nature whatsoever levied in the recipient country (including all corporate/personal/ value added taxes, import/ custom duties, special levies and social security contributions) for temporary employees deputed by Indian exporters in relation to the project execution in the recipient countries.