This is historical material, "frozen in time." The web site is no longer updated and links to external web sites and some internal pages will not work.
CLINTON ADMINISTRATION SECURES CONTRACTS FOR U.S. EXPORTERSTOTALING OVER $40 BILLION, SUPPORTING TENS OF THOUSANDS OF JOBS
During President Clinton's trip to the Philippines and
Indonesia, the Clinton Administration successfully advanced
twenty-two commercial transactions for U.S. exporters and APEC
industries which total over $40 billion and support tens of
thousands of U.S. jobs.
The transactions, signed or witnessed by Secretary Ron
Brown, Secretary Warren Christopher or Export-Import Bank Board
Member Maria Haley, reflect the sectors in which the Clinton
Administration has focused its efforts -- telecommunications,
energy, transportation and the environment.
As part of the President's overall economic plan, the
Administration is aggressively pursuing an export strategy
focused on opening markets to free and fair trade and helping
American companies and American workers. This strategy is paying
off -- the commercial agreements signed during the President's
trip creates new U.S. jobs through increased exports in Asia's
rapidly growing markets.
In the Philippines 5 agreements worth over $400 million were
witnessed or signed by Secretary Christopher or Maria Haley,
a member of the Board of the Export-Import Bank. These
agreements included AT&T, Motorola, Hughes, and Federal
Express and will support jobs from Germantown, Maryland to
Oklahoma City, Oklahoma.
On his trip to Malaysia yesterday, Secretary Brown witnessed
the signing of 2 agreements worth over $250 million for
General Electric and Johnson Controls, of Milwaukee, WI.
In Indonesia, Secretary Brown and Maria Haley witnessed or
signed 15 agreements for projects worth over $40 billion.
In the area of environmentally-friendly geothermal plants,
two separate agreements with a total value of over $750
million dollars will be concluded by such US companies as
California Energy, and Unocal; a ground-breaking deal
involving US tied aid helped progress a deal with U.S. small
business exporter Ellicott Machine Corp. against stiff
foreign competition; and several telecommunications
opportunities for AT&T, Motorola, and Hughes Network Systems
are among the agreements being executed.
Products and equipment to fulfill these transactions will be
manufactured by these companies and support tens of thousands of
new jobs in Ohio, Texas, Illinois, Oklahoma, Florida, California,
Maryland, New York, Pennsylvania, South Carolina, Arkansas, and
Wisconsin.
A brief description of each of the commercial agreements
signed in the Philippines and Indonesia are attached.
PHILIPPINES
The Export Bank of the United States signed a memorandum of
understanding with Pilipino Telephone Corporation (Piltel)
of Manila to provide financing for a $29.7 million Motorola
contract. The project is part of a major upgrade and
expansion of telephone service in the Philippines. Motorola
will provide equipment for Advanced Mobile Phone Systems in
Cebu, Cagayan de Oro, and Davao serving 40,000 subscribers.
Equipment will be manufactured at Motorola facilities in
Arlington Heights, IL. The project will support an
estimated 250-300 American jobs.
Contract Total $29.7 million
U.S. Content $29.3 million (98.5% of contract amount)
Ex-Im Financing $26.2 million
U.S. content includes cell site, cellular switching, microwave
The Export Import Bank of the United States signed a
memorandum of understanding with Pilipino Telephone Corp
(Piltel) of Manila to provide financing for a $36.7 million
contract with AT&T. The project is part of a major upgrade
and expansion of telephone service in the Philippines. AT&T
will provide its Autoplex System 1000 to expand Metro
Manila's cellular network from 59 cellular base sites to
108. Parts and equipment will be manufactured at AT&T
facilities in Columbus, OH; Mesquite , TX ; Oklahoma City,
OK; and Lisle, IL. The project will support an estimated
730 American jobs.
Contract Total $36.7 million
U.S. Content $34.6 million (94.3 percent of contract
amount)
Ex-Im Financing $32.8 million
U.S. content includes AT&T's executive cellular processor,
digital cellular switch, and cellular base station.
Contact: AT&T
Paul Provost (201) 606-2826
Public Relations Manager
On-Site: Kelvin Yeo 65-390-5480
Public Relations Manager
South Asia/Pacific
PHILIPPINES
Federal Express (FEDEX) and the Subic Bay Metropolitan
Authority (SBMA) near Manila signed an operating agreement
which will allow FEDEX to begin limited operations on May 1,
1995, and a full schedule of flights on July 1, 1995.
In return, FEDEX has promised to pay SBMA 1.65 million
dollars per year for seven years. The regional operations hub
which FEDEX will establish at Subic Bay will make the company
very competitive in the area. For our formal naval hub in the
pacific, this is an excellent example of defense conversation in
the context of expanding regional infrastructure operations in
the Asia-pacific region. Estimates of the number of American
jobs supported by the project are unavailable, but this new hub
expands FEDEX's coverage considerably. FEDEX will be opening a
new import/export clearance center in Oakland, CA, to handle the
expanded Pacific traffic. This agreement will create new
connections, jobs, and wealth on both sides of the Pacific.
Contract Total in excess of $300 million
U.S. Content Not Available
Contact: Peter Yin
VP of Marketing, Customer Service, and
Communications
FEDEX/Hong Kong
(852) 514-082
The Export Import Bank of the United States signed a
memorandum of understanding with Pilipino Telephone
Corporation (Piltel) of Manila to provide financing for
$32.3 million contract AT&T. The project is part of a major
upgrade and expansion of telephone service in the
Philippines. AT&T will provide the 5ESS Gateway Switch,
cell sites and other equipment to upgrade and expand
Piltel's Metro Manila cellular telephone network. Parts and
equipment will be manufactured at AT&T facilities in
Columbus, OH; Mesquite, TX; Oklahoma City, OK; and Lisle,
IL. The project will support an estimated 660 American
jobs. Financing was provided by the export-Import Bank of
the United States.
Contract Total $32.3 million
U.S. Content $30.4 million (94.1% of contract amount)
Ex-Im Financing $28.9 million
U.S. content includes the 5ESS Gateway Switch,
Series I and II cell sites, and other related equipment and
software.
Contact: AT&T
Paul Provost (201) 606-2826
Public Relations Manager
On-site: Kelvin Yeo 65-390-5480
Public Relations Manager
South Asia/Pacific
PHILIPPINES
The Export Import Bank of the United States will sign a loan
agreement with the Philippine Long Distance Telephone
Company (PLDT) of Manila for a &16.8 million contract with
Hughes Network Systems. The project is part of a major
upgrade and expansion of telephone service in the
Philippines. Hughes will provide earth stations and other
equipment for a very small aperture terminal (VSAT) based
telephone system to supply telephone service to rural areas
of the Philippines by accessing a satellite. Equipment will
be manufactured at Hughes facilities in Germantown, MD.
Estimate of the number of American jobs supported by the
project is unavailable from exporter. Financing was
provided by the Export-Import Bank of the United States.
Contract Total $16.9 million
U.S. Content $15.9 million
Ex-Im Financing $15.1 million
U.S. content includes Telepathy Earth Stations --
Network Control System, hubs, remote earth stations and
gateway earth stations -- and installation and
training.
On-site: Donough Foley 62-21-571-3551
Hughes Aircraft/Asia
Public Relations Contact
INDONESIA
The Export-Import Bank of the United States will sign a
credit agreement with the Ministry of France for a $65
million AT&T contract with PT Telekomunikasi of Jakarta.
The project is part of an extensive upgrade of Indonesia's
telecommunications network that will ultimately provide 1.1
million new lines in Indonesia. AT&T is responsible for the
design, manufacture, delivery and installation of 270,000
lines and 33.2 digital circuits. Parts and equipment will
be manufactured at AT&T facilities in Oklahoma City OK,
including the 5ESS switch, which is the most advanced public
digital switch in the world. The project will support an
estimated 1,300 American jobs. Financing was provided by
the Export-Import Bank of the United States.
Contract Total $64.8 million
U.S. Content $62.8 million
Ex-Im Financing $57.1 million
U.S. content includes 5ESS digital switching
equipment, distribution frames, services, transportation and
insurance.
Contact: AT&T
Paul Provost (201) 606-2826
Public Relations Manager
On-site: Kelvin Yeo 65-390-5480
Public Relations Manager
South Asia/Pacific
INDONESIA
General Electric Technology Indonesia (GETI) signed a $17.5
million joint venture agreement with Indonesian State
Railways to manufacture 12 U2OC locomotives for delivery
in mid-1995. Locomotives will be built by GE in PA. A
memorandum of understanding being completed will define the
following: the structure of the overall joint venture; a
firm order for 15 additional locomotives worth over $20
million to be assembled in Indonesia with U.S. parts; a
locomotive upgrade program for 40 previously purchased GE
units; a $500,000 training program for Indonesian
workers,and several more commercial opportunities. The
project is estimated to support 2400 American jobs and lead
to $120 million in increased U.S. exports over a six-year
period.
Contract Total $17.5 million
U.S. Content $12 million (projected to $120 million
over 10 years)
Ex-Im Financing $19.9 million
Contact: General Electric
S. Breon
(814) 875-3457
INDONESIA
Mission Energy and GE are two of the major sponsors in a
consortium of companies that will sign a memorandum of
agreement for a $2.6 billion project for the supply of power
equipment and services for Indonesia's first large-scale
independent private power project. U.S companies will
provide about $500 million of U.S. equipment and services
for the coal-fired power plant to be located in East Java.
The project will be used as a model for other large private
infrastructure projects in Indonesia. Equipment and services
by Mission Energy will be supplied by the company's Irvine,
CA facility. Location of other sites for procurement of
equipment and services is not yet determined.
The U.S. consortium estimates that the project will create
5,000 American jobs. Financing may be provided by the
Export-Import Bank of the United States. The transaction is
an example of Ex-Im Bank's aggressive new project financing
program to help American companies participate in private
infrastructure projects in developing countries.
Contract Total 2.6 billion
U.S. Content $500 million
Ex-Im Financing Up to 85% of US content
US content includes boilers, turbine generators, engineering
services, and other equipment and services.
Contact: Larry Pintak
TriComm Strategic Communications
314-894/720-2900
INDONESIA
California Energy Company will sign an energy sales contract
and a joint operation contract with Pertamina (the
Indonesian national oil company) and the Indonesian national
electric utility (PLN) to build, own and operate a
geothermal power facility at the Dieng geothermal field.
The project will involve construction of a 220MW power plant
negotiated under a Build-Own-Operate-Transfer (BOOT)
structure. Initial power generation at the geothermal field
will be 55MW with expansion planned in three 55MW increments
totalling 220 MW when completed.
Contract Total $450 million
U.S. Content $325 million
Financing CEC plans to work with Ex-Im Bank
and OPIC on project financing. CEC
and its partners would anticipate
making about 25 percent equity
contribution with political risk
insurance.
CEC will utilize over $325 million in U.S. equipment,
goods and services, and will generate significant levels of
U.S. exports (for both projects).
Contact: California Energy Company
J.Wiesgall
(202) 828-1378
INDONESIA
General Electric will sign a memorandum of understanding for
the formation of a joint venture between GE and the
Indonesian Agency for Strategic Industries (BPIS). The
joint venture will establish and provide a gas turbine local
content capability in Indonesia. The overall project will
be implemented in three phases, providing a progressive
manufacturing program for the production and assembly of
aeroderivative and heavy-duty gas turbine systems in
Indonesia. Equipment will be sourced in Evandale, Ohio and
Greenville, South Carolina. The project will sustain over
2,000 jobs each year of the 10-year period.
Contract Total Project value estimated at $1-2
billion over 10 years (beyond the
supply of turbines, GE will
transfer technology, train local
personnel, and maintain a sales
marketing interest in the project)
U.S. Content $1-2 billion over 10 years.
U.S. Content consists of the aeroderivative and heavy-
duty gas turbines and high technology gas turbine components.
Contact: Mr. Ram K. Sharma
National Executive Indonesia
GE Company
520-3353
INDONESIA
Fuller International Inc. signed a contract with P.T. Semen
Gresi (Persero). In addition to the contract, Fuller signed
a memorandum of understanding for the supply of one
additional production line. The project is for the
engineering and equipment supply for a 7800 TPD cement
plant. Equipment and engineering services will be provided
from Fuller's plant in Bethlehem, PA.
Contract Total $74.7 million
U.S. Content $45 million
CONTACT: Fuller International
J. Alogna
(610) 264-6195
INDONESIA
Aquatics Unlimited, International Equipment Corporation will
sign a memorandum of understanding with PT Amarta Karya
(PERSERO) involving the clean-up of polluted waterway as
part of the Indonesian Clean Rivers Program to increase
health and provide clean water resources for future use.
The project has targeted 12 rivers to alleviate pollution
resulting from the dumping of industrial and domestic
wastes. Aquatics will provide the environmental equipment,
operational training, and potential feasibility stud. The
location of the plants from which the U.S. content will be
sourced is Antioch and Martinez, CA.
An Aquatic Weed/Debris Harvester was shipped to Jakarta for
the signing ceremony and will be operated on various
demonstration projects over the next few months. Aquatics
Unlimited received a $20,000 environmental technology grant
from the U.S.-AEP and the National Association of State
Development Agencies, which aided the initial shipment to
Jakarta.
Contract total: $10 million (projected over 5 years)
U.S. Content: $8.5 million (projected over 5 years)
Contact: Thomas McNabb
390-1234 Room 2020
Grand Hyatt Jakarta
INDONESIA
Ellicott Machine Corp. will sign a memorandum of
understanding for a $34.3 million project with PT Rukindo of
Jakarta. Ellicott would provide five split barges, one tug,
and spare parts from its facilities in Baltimore, Maryland.
The project would create 50 American jobs. A tied aid
direct loan was offered by the Export-Import Bank of the
United States to match concessional financing offered by a
competing government, thus leveling the playing field for
Ellicott. The transaction is a strong example of Ex-Im
Bank's new policy aimed at aggressively countering foreign
governments' tied aid credit offers, where these are
confronted by U.S. exporters. (Tied aid is government-togovernment
concessional financing, tied to the purchase of
donor country exports) It also reflects the Bank's strong
support of U.S. small business exports.
Contract Total $25 million
U.S. Content $25 million
Ex-Im Financing: $35.1 million (includes exposure fee)
U.S. content includes barges, tug and spare parts.
CONTACT: Ellicott Machine Corp.
Charles Kreter (410) 837--7900 x202
Vice President and General Manager
INDONESIA
The Export-Import Bank of the United States will sign a
memorandum of understanding with Indonesia's Ministry of
Forestry to support Motorola's U.S. $104 million project
with the Ministry of Forestry.
Motorola will provide a state-of-the-art, integrated, radio
communications system for a project aimed at promoting forest
conservation and preservation of the indonesian rainforest. The
purpose of the system is to help minimize rain forest
destruction caused by fire and illegal exploitation and to
improve forestry management through earl warning and coordinated
response capabilities. Indonesia's rainforest, which is highly
dispersed geographically, is the second largest tropical
rainforest resource in the world. In addition to its economic
and environmental value to Indonesia the rainforest is an
invaluable ecological resource of worldwide significance.
A tied aid direct loan was offered by the Export-Import Bank of
the United States to level the playing field for Motorola in
Indonesia. This transaction is a strong example of the
Administration's and Ex-Im Bank's new policy aimed at
aggressively countering foreign governments' tied aid credit
offers, where these are confronted by U.S. exporters. (Tied aid
is government--to-government concessional financing, tied to the
purchase of donor country exports.) Equipment will be
manufactured at Motorola facilities in Plantation, Florida.
Contract total $104.0 million
U.S. Content $78.2 million
Ex-Im Financing $104.0 million
At this time the Ministry of forestry intends to utilize
$51,293,000 for U.S. contents.
U.S. content includes base stations, portable radios, mobile
radios, and other radio communications equipment and system
installation services.
Hughes Network Systems signed a protocol agreement for a
$130-200 million joint venture with Ratelindo to provide a
wireless overlay telephone system for Jakarta to enhance its
existing, congested system. Hughes is also supplying
necessary financing for the equipment. U.S. content will
come from Hughes plants in El Segundo and Torrance, CA.
Contract Total over $130 million
U.S. Content over $100 million
U.S. Content will include GMH2000 Digital Cellular
Fixed Wireless System. Spacecraft include: solar
panel array, batteries, propulsion, payload, bus
hardware, services, performance incentive, and
ground stations.
Contact: Hughes Network System
J. Blake (301) 428-7133
INDONESIA
Heard Energy Corporation signed a memorandum of
understanding for a $300 million power project with
Indonesian Directorate of Electricity and Energy Development
(solicitor of bids) with PT Panha Serodia Pradhana. (Heard
Energy Corporation is part of a consortium including Entergy
Power Development Corporation in Little Rock, AR and PT
Transmega Ekacipta Corporation in Jakarta, Indonesia). The
purpose of the project, which is expected to last three
years, is to build, own and operate a 200 MW coal-fired
power plant to supply power to the Indonesian state-owned
electric company, PLN, based on a 30 year Power Purchase
Agreement. An estimated 1,360 American jobs will be
supported by this project.
Contract Total $300 million
U.S. Content Up to $80 million
U.S. contractors are being asked to provide
turnkey construction proposals including U.S. manufactured equipment.
Contact: Heard/Entergy Power
Budzinsy
(202) 522-8992
INDONESIA
Heard Energy Corporation signed a memorandum of
understanding for a $200 million power project with
Indonesian Directorate of Electricity and Energy Development
(solicitor of bids) with PT Panha Serodia Pradhana (Heard
Entergy Corporation is part of a consortium including Energy
Power Development Corporation in Jakarta, Indonesia). The
purpose of the project, which is expected to last three
years, is to build, own and operate a 110 MW coal-fired
power plant to supply power to the Indonesian state-owned
electric company, PLN, based on a 30-year Power Purchase
Agreement. An estimated 850 American jobs will be supported
by this project.
Contract Total: $200 million
U.S. Content: Up to $50 million
U.S. Contractors are being asked to provide turnkey
construction proposals including U.S. manufactured equipment.
CONTACT: Heard/Entergy Power
Budzinsky
(202) 522-8992
INDONESIA
Esso Exploration and Production Natuna Inc., an affiliate of
Exxon Corporation, is signing an undertaking to sign a basic
agreement with Pertamina, the national oil company of
Indonesia for development of the $35 billion Natuna Sea Gas
Project. This project involves the development of the
largest off-shore natural gas field in the Pacific to supply
liquefied natural gas (LNG) to Asian markets, under a
Production sharing Contract (PSC) awarded in 1980. Once
underway, the project will include off-shore gas production
and treating, transmission to shore, and natural gas
liquefaction on-shore Natuna island. LNG will be
transported by ship to customers. The signing marks a major
step to a final contract signing which is expected to occur
in January, 1995.
Contract Total: $35 billion to $40 billion
U.S. Content: Estimate not available at this time.
Law International has signed a memorandum of understanding
with P.T. Carita Krakatau International, a subsidiary of the
Lippo Group, to provide engineering services for the design
of a water supply, sewage collection/treatment system, and
roads and drainage system for the development of the Carita
Bay Tourist Resort in West Java. The initial project value
is $200,000 and would be followed by further contracts for
this development and other major developments of the Lippo
Group. The U.S.-Asia Environmental Partnership program has
played a significant role in bringing this deal together.
Unocal is signing joint operation and energy sales contracts
with Pertamina (the Indonesian state-owned oil and gas
corporation) and PT PLN (the Indonesian National electricity
corporation) to expand its exploration and development of
its geothermal generating capacity on the island of Java.
This project will triple the generating capacity of the
Gunung Salak geothermal project by using natural geothermal
water and steam, and the natural heat of the earth to supply
energy to the people of Indonesia and feed the country's
industrial growth. Unocal values these contracts at $330
million.
Contract Total: $330 million
U.S. Content: no estimate provided
Contact: O.D. Whitescarver
(021) 571-0525
SECRETARY BROWN'S TRIP TO MALAYSIA
MALAYSIA
GE signed a $250 million contract with Tenaga National
Berhad (TNB), which will manufacture and install two steam
turbine generators and auxiliary equipment for the Sultan
Salahuddin Abdul Aziz Power Station. This contract is GE's
first installation of large steam turbines in South Asia,
and will be a large step toward meeting Malaysia's growing
energy needs. The GE steam turbines and generators will be
manufactured in GE's Schenectady, NY plant.
Contract Total $250 million
U.S. Content $140 million
Contact: Dina Zaman
Sandra Goh
Alina Ibrahim
03-2617900
MALAYSIA
Johnson Controls, of Milwaukee, WI, and PROPEL of Malaysia
are signing a memorandum of understanding to set forth their
plan to form a joint venture that provides operation and
maintenance services in Malaysia for numerous facilities,
including industrial complexes, commercial centers, and
airport facilities. Johnson Controls envisions that such a
joint venture will also include selling, installing and
repairing equipment supplied by itself and other U.S.
manufacturers.