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Export Credits Guarantee Department

Volume 409: debated on Friday 18 July 2003

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To ask the Secretary of State for Trade and Industry pursuant to her answer of 9 June 2003, Official Report, column 626W, regarding the three cases in which covenants and other conditions relating to environmental and social impacts were included, what (a) host country legislation and (b) international environmental standard requirements which the Export Credits Guarantee Department stipulated that the relevant projects, goods or services had to comply with to ensure cover was provided. [126087]

Taking each of the projects listed in the answer of 9 June 2003, Official Report, column 626W in turn:

Nigeria LNG Plus

All the participating Export Credit Agencies (ECAs) insisted that covenants were inserted which committed the project to comply with the environmental laws of Nigeria and the environmental guidelines and standards of the World Bank Group and the African Development Bank. In addition, a detailed Environmental and Social Management Plan agreed by ECGD, the participating EGAs and the African Development Bank committed the company to a range of project-specific standards and mitigation measures.

Marlim Sul Oilfield, Brazil

Covenants committed the company to implementing the standards and recommendations set out in the Environmental Impact Assessment and to compliance with Brazilian environmental laws (which we consider to be more stringent than those of the World Bank Group).

Offshore exploration drilling, Brazil

The covenants required the company to regularly provide evidence that it had obtained all relevant environmental permits from the Brazilian authorities, and to notify ECGD of any material environmental incidents.

To ask the Secretary of State for Trade and Industry pursuant to her answer of 13 June 2003, Official Report, column 1103W, excepting host country legislation, whether there are international environmental standard requirements which the Export Credits Guarantee Department makes requisite for every application if it is to be awarded cover. [126088]

ECGD has, since 2001, sought to ensure that all the civil, non-aerospace cases it supports comply with relevant World Bank Group environmental guidelines and policies.

To ask the Secretary of State for Trade and Industry how many applications deemed to have high potential impact the Export Credits Guarantee Department has (a) received and (b) refused cover for; and what the project type was of those applications (i) received and (ii) refused. [126110]

The information is as follows:

  • (a) ECGD has received 12 applications relating to projects deemed to have high potential impacts. Of these, six are oil and gas projects, four involve power distribution or generation, one is a steel project and one is a bridge.
  • (b) None of these applications has been refused cover. Two have been approved and both were in the oil and gas sector. The others are either still being assessed or have not progressed because the UK exporter did not win the contract.
  • To ask the Secretary of State for Trade and Industry, pursuant to her answer of 25 June, Official Report, column 798W, on the Export Credit Guarantees Department, if she will list, for each country, the amounts (a) which relate to military and defence products, contracts or services and (b) which do not. [125930]

    The amounts are detailed by country and split between defence and non-defence in the tables (which have been placed in the Library) by reference to ECGD's exposure as at 30 June 2003. Given the way ECGD's records are held it is not possible to split claims outstanding for recovery in respect of Account 1 (pre-1992 business) between defence and non-defence nor amounts in respect of moratorium interest accrued on claims paid.