Exim Bank extends US$ 40 mn Credit Line To Angola For Railway Project
Export-Import Bank of India (Exim Bank) has, at the behest of Government of India, extended a Line of Credit (LOC) of US$ 40 million, to Government of Angola, for financing a project for rehabilitation of Mocamedes railway in Angola, to be executed by RITES Ltd., a Government of India Enterprise, under the aegis of Indian Railways. An Agreement to this effect was recently signed by Mr. R. M. V. Raman, Executive Director of Exim Bank and by Mr. Leonel Felisberta da Silva, National Director for Treasury, Government of Angola. This is the second LOC extended to Angola. Exim Bank has already in place an LOC of US$ 5 million to Angola.
Under the LOC to Angola, Exim Bank will reimburse the Indian exporter upfront, upon shipment of equipment and goods and provision of services, under the contract, which envisages technical assistance, staff training, rehabilitation of Namibe-Matala route, supply of trains and coaches, as well as the equipment for maintenance.
India's exports to Angola amounted to US$ 70 million during the year 2003-2004, registering a growth of 87.5% over the previous year's exports of US$ 37.4 million. Meat & its preparations, petroleum products, drugs, pharmaceuticals & fine chemicals, transport equipment and manufactures of metals were the principal items in India's export basket to Angola in the year 2003-04. Potential areas that Indian exporters can focus on, are export of Indian capital goods and services for sectors like railways, engineering, fishing as well as products like drugs and pharmaceuticals, to Angola. There also exists considerable potential for setting up joint ventures in Angola in sectors like pharmaceuticals and engineering goods. According to UNCTAD, Angola was the largest recipient of FDI in Sub-Saharan Africa in 2002. Angola is the fourth largest producer of diamonds in the world, value-wise. Several new diamond mining projects and the award, or transfer, of licenses have been announced by the Angolan authorities in recent months. LOCs extended by Exim Bank are expected to help the Indian exporters tap the vast potential for trade and investment in Angola.
Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Exim Bank has in place a number of Lines of Credit for promoting India's exports to countries in Africa, Asia, Latin America, East Europe and Russia.
For further information, please contact
Mr. P. R. Dalal,
Export-Import Bank of India,
Centre One Building, Floor 21,
World Trade Centre Complex,
Mumbai 400 005
Telephone: (022) 22162073/22185272 Extn. 2200
Fax: (022) 22182460.