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.
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