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AFRICA FINANCE

Financing Projects:

Increased Focus on Human Rights and Greenhouse Gas Emissions in Export Credit Agency due Diligence Project developers, export credit agencies and other stakeholders in energy and infrastructure projects which benefit from export credit finance will need to be aware of, and factor into their project planning, assessment and development, as applicable, recent changes to the Organisation for Economic Co-operation and Development’s Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (OECD Common Approaches), which were adopted on 6 April 2016. The latest version of the OECD Common Approaches increase and expand the requirements for environmental and social due diligence for export credit agency (ECA) financed projects. While these changes affect all goods and services financed by ECAs, they are especially pertinent for project financings. The OECD Common Approaches aim to harmonise environmental and social assessment procedures so that the same competitive conditions apply for all ECAs.

Due diligence typically includes reviewing any environmental and social impact studies or reports produced by the project developer, site inspections, internet-based research, interviews with employees, and consultation with other stakeholders. The OECD Common Approaches apply to all projects with an officially supported export credit with a payment period of more than two years.

New human rights screening requirement Under the latest version of the OECD Common Approaches, ECAs will be bound to screen all applications to identify whether there may be a high likelihood of severe project-related human rights impacts occurring and, where such impacts are identified, to carry out further assessments. Previously, no further action was required beyond screening for applications for projects for which the share of the Adherent (an OECD member or non-OECD member which elects to adhere to the OECD Common Approaches) is below SDR 10 million (SDR =

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Profile for Global Banking & Finance Review

Global Banking & Finance Review Magazine - Business and Financial Magazine  

Global Banking & Finance Review is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Vid...

Global Banking & Finance Review Magazine - Business and Financial Magazine  

Global Banking & Finance Review is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Vid...