Export Import Bank of the United States 2005 Annual Conference Environmental Exports Panel

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Export Import Bank of the United States 2005
Annual Conference Environmental Exports Panel
ARMENTROUT ROEBUCK MATHENY CONSULTING GROUP PC
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ARMENTROUT ROEBUCK MATHENY CONSULTING GROUP, PC

• International Engineering/ Architectural/
  Construction Management firm
• Located in Athens, Georgia
• Current projects in Africa, South America and the
  Caribbean
• Staff of 26

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ARMENTROUT ROEBUCK MATHENY CONSULTING GROUP

• Develops infrastructure projects for the public
  and private sector
• Provides design, financing acquisition
  management, construction/project management
  services
• Typical projects water/wastewater treatment,
  water distribution/wastewater collection,
  industrial facilities, governmental and
  commercial facilities, engineering/feasibility
  studies.

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EXIM Bank Financed Projects in Grenada, West
Indies
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Grenada Water Pipeline Project

• Water pipeline project for Government of
  Grenadas National Water Sewerage Authority
  (NAWASA)
• Project was developed over a 3-year period by
  Armentrout Roebuck Matheny Consulting Group, P.C.
  (ARMCG)
• ARMCG provided all design/financing acquisition/
  construction services
• Project financing obtained through EXIM Banks
  Environmental Exports Program

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Water Pipeline Project Information

• Pipeline was designed to convey potable water
  from mountain water source to city of St.
  Georges

Project water source in Concord
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Water Pipeline Project Information

• Pipeline route coincided with western coastal
  highway. Due to space constraints pipe was laid
  in roadbed
• ARMCG installed approximately 26,000 linear feet
  of US manufactured ductile iron pipeline

Pipeline trench narrow roadway
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Water Pipeline Project Information
Graphic depicting hydraulic model of Grenada
pipeline

• Pipeline route on western portion of island

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U.S. Manufactured Ductile Iron Pipe (financed by
EXIM Bank)
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Benefits of US Export Import Bank Financing to
ARMCG

• Provides ARMCG with complete package approach
• Accessible funding that can be obtained
  relatively quickly
• Environmental projects benefit from increased
  local content coverage and longer terms

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Development of Grenada Waterline Project Financing

• Client needed 100 financing for project
• Initial discussions with EXIM Banks Business
  Development Division
• Provided detailed information on how to proceed
• Provided information needed for selection of
  commercial bank in Atlanta area with experience
  in EXIM funding

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Development of Grenada Waterline Project Financing

• Provided support throughout process
• Identified EXIM insurance program as best fit
  for Grenada project
• Continued contact during project
• Discussions with Grenada officials
• Educate government on export financing
• Negotiations on cost/scope of work
• Address concerns of government regarding terms of
  loan vs. concessionary financing

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Export Project Challenges Encountered by ARMCG

• Balancing financing requirements vs. local
  content desires and political issues
• Local political pressure to employ local workers
  and/or use local materials is at odds with
  government desire for maximum financing
• Environmental projects may require significant
  local content
• Macro political/economic changes in country

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Example Projects Projects in Venezuela

• ARMCG providing engineering evaluation and
  conceptual design services for overall
  water/wastewater systems on Margarita Island
• Evaluation services are funded by the United
  States Trade Development Agency (USTDA)
  majority of implementation funding was envisioned
  to be through EXIM at beginning of project
• Implementation funding difficulties developed due
  to Venezuela political/economic situation (EXIM
  currently closed)

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Example Projects Projects in Venezuela

• Cargo handling equipment financing for private
  company transaction was approved by EXIM
• Currency controls were initiated by Chavez before
  loan closing
• Controls severely impacted borrowers ability to
  repay loan in dollars transaction was
  terminated

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Export Project Challenges Encountered by ARMCG

• Shipment, customs, local transport
• Difficulties between customs officials
  government
• Financing Requirements
• Export funding oriented more toward products and
  not services adjustments are required

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Example of non-environmental project Roman
Catholic School in Grenada

• Financed through EXIM Bank and private export
  funding sources
• Designed Constructed by ARMCG
• Non-environmental project required more
  supplemental financing to achieve 100 funding

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Roman Catholic School Project in Grenada
US manufactured precast concrete components were
used to maximize US content
School survived Hurricane Ivans 130 mph winds
with no structural damage (design wind speed 140
mph)
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Example of Services-Only Project Cement
Manufacturing Facility Engineering/Feasibility
Study in Nigeria

• ARMCG working in association with Renaissance
  Management Group
• EXIM financed project through private Nigerian
  bank Intercontinental Bank, Plc
• Study end-user is Benue State government in
  Nigeria
• Short term financing for services (First Phase)
• Intent for implementation (Second Phase) will be
  to maximize EXIM financing for equipment and
  other US content as complement to equity
  investment

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Presentation Summary

• EXIM Bank financing is appropriate for a wide
  range of projects/transactions
• Environmental projects/transactions are given
  preferential terms and conditions
• EXIM Bank programs are accessible and beneficial
  for small businesses and new exporters
• ARMCG has received substantial benefits from
  using EXIM Banks programs and considers EXIM an
  essential resource for the companys
  international business strategy