Improving the Role of Eximbanks/ECAs in the OIC Member States
13
case, Country A’s ECA could take the lead and offer its full guarantee or financing for the whole
deal, and obtain reinsurance from Country B. Where there are multi-sourced deals involving
multiple countries and ECAs, the lead ECA will be looking to other ECAs to reinsure their
country’s portion. Without such an ECA program facility available, there is a risk that the
sourcing would go to another country which has these facilities.6
The OECD ECAs have been actively engaged in using these multi-sourcing co-operation
agreements since the late 1990s. Most of the large power projects that have been built in the last
decade or so have involved multiple ECAs, under a single umbrella policy, simplifying the process
for the financing banks and project sponsors. An example is the Qatargas 2 project in 2009 which
involved two OECD ECAs, US EXIM and SACE of Italy, each providing insurance cover USD 400
million and USD 405 million, respectively, related to the value of exports from their countries.
The trend towards this kind of cooperation is increasing as global value chains proliferate. Such
cooperation models could serve as inspirational examples for the OIC Member States. In reality,
however, there have been a number of examples of such reinsurance arrangements of OIC ECAs
with ICIEC but not between national OIC ECAs. For example, while Türk EXIM has co-operation
agreements with 17 ECAs, specific transactions supported with other OIC countries have been
very limited. OIC members of the Asian EXIM Bank Forum are also seeking similar opportunities
to collaborate on individual transaction in this manner, but to date there has been limited
experience.
6
For a practical discussion of multi-sourcing arrangements and how they work from the German ECA, see: