Famous Chinese EPC contractor can help you facilitate your China Exim bank finance

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 21, 2010 -- Famous Chinese EPC contractor can help you facilitate your China Exim bank finance:

We have been in the world power projects contracting and power equipments market for more than 30 years with many finished projects as Chinese number one power EPC contractor, fully supported by top equipments suppliers as GE and other Chinese equipments supplier, Chinese government departments, service providers, and Eixm bank and other commercial banks, we can conveniently get support from our Chinese Exim bank financing as buyer’s credit, soft loans, and commercial loans for our contracted projects. Many of our finished or contracted projects are financed by these banks.

Usually there are two kinds of loans:

The two kinds of loans are actually buyer's credit loan offered by Chinese governement. They are also called Government-Government credit loan for world projects.

Soft loan: soft loans can be supplied by our China Exim bank, against sovereign guarantee issued by the project employers Federal Government‿Ministry of Finance. The soft loan interest rate can be as low as 2-3%, maturity terms can be 20 years, with 5 years expandable on condition, 2-5 years grace period.

Commercial loan: commercial loans can be supplied by Exim bank as well as our Chinese commercial banks, against sovereign guarantee or commercial guarantee. Commercial guarantee usually issued by world reputable banks, but will be assessed case by case by our banks who will supply financing for your projects. Interest rate can about Libor plus certain basic point, which is negotiable to condition, 12-15 years as terms, and 2-5 years grace period. And the financing should be covered by insurance premium issued by our Sinosure, a state own insurance company for import export business. Usually the approval time from the date when documents are ready is about 6 months.

Now there is new loan policy for commercial loan, if your employer has 30% self fund and bank guarantee, we will apply loan as you exclusive EPC with our lending bank and policy insurance company such as Sinosure (starting from May 26th, 2010).

For both soft loan and commercial loan projects, the foreign employers should have at least 15% of their own fund contribution to the projects, and the maximum loan value can only be 85% of the contract value. equipment supplying or project EPC contracts should be signed with Chinese companies, of course, if you need our help, you should only negotiate equipment supplying or EPC contracts exclusively with us. We do not attend any tenders if your projects are seeking for loan from us.

What is your action for applying in advance?

Every year our Exim bank has a quota for supplying soft loan to the foreign nations to support their development, so if you are planning to construct power projects or other projects as cement plants, fertilizer plants, telecommunication project, airports and other infrastructure projects, you should contact us at very earlier stage so that we can understand you actual demands and guide you how to prepare all these required documents.

At very earlier stage, you can provide us basic introduction of the to be constructed projects will brief introduction on technical capacity, characters, financing plan, background of the employers and other information your take them to be helpful for us to understand your projects. After preliminary evaluation, we will register with our banks, our EPC contractors, top equipments suppliers, designing team to inform them that we would be interested in your recommended projects to let them prepared for your projects.

If we think your projects are within our interest, then we will sign Exclusive MOU with you and also send Letter of Intent to your employer. After the employer providing more detailed projects documents, we will offer preliminary technical and commercial proposals to them. During these stages, you or your employers should pay a visit to us in Beijing to hold more deep and intensive talk on cooperation.

The documents needs by Exim bank:

As a very earlier stage evaluation, China Exim bank would need four documents:

1. Letter of Intent for Applying soft loan issued by your Ministry of Finance, signed by His Excellency of Minister;

2. EPC contract with famous Chinese EPC;

3. project feasibility study;

4. Enviroment Impact Assessment Report.

And afterEPC contracts, you should pay the adcance payment as soon as possible so that Chinese government can see your readiness of seriousness for applying the loans from China, for this purpose, you should provide the following documents:

1. Advance payment bank guarantee beneficiary's official name and address, introduction,

2. beneficiary's financial statements for the last three years,

3. EIA should be certified by your Federal government's environment protection bureau or other government departments.

In case the employers do not have feasibility study or Environment impact assessment report, our reputable design team or consulting team can do them for the employer at the employers cost. Or you can just simply fill our format or questionnaire for power plants or other plants, please ask us to provide the format.

Steps on projects with natural resources as repayment for these projects without sovereign guarantee

There are three parties from each side of the project to be involved in such project: from the employer’s side there are Ministry of Finance, Oil or resource companies selling oil or natural resources, Employer of the project; from the employee’s side: Chinese Eximbank or Commercial banks, Chinese natural resource buying companies, EPC contractor.
1. First Chinese EPC and local employer working on EPC contract for the project and signing the EPC contract based on project feasibility study and environment impact assessment and other technical, commercial and financial documents.
2. Chinese natural resources buying companies signed natural resource purchasing agreement with the local natural resource supplying companies from the project host nation under the arrangement of the Chinese EPC contractor.

3. Project host nation’s Federal Ministry of Finance signs loan agreement with Chinese Eximbank or commercial banks for the loan amount about 85% of the EPC contract price.
4. The employer should have at least 15% of the self financing of the project.

EPC contractor acting as minor investor and financing facilitator for financing from Chinese banks

There are some equipment producers or EPC contractors who can act as EPC contractor or suppliers to your projects; and local project employers should apply with local government to get all the project approval documents needed, and then provide financing bank guarantee. Our supplier and contractor will hold 30% equity and provide facilitating work to apply with Chinese banks and insurance companies. The typical equipments are HFO diesel generator power plant and gas engine generatorpower plant projects.
For more, please visit: http://www.china-power-contractor.cn/Government-finance.html

More information can be found online at http://www.china-power-contractor.cn/Government-finance.html

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