The Key to the Export Puzzle: Project Finance

Online, November 15, 2013 (Newswire.com) - At the Reform Major Policy Conference in London this week, Biwater's Executive Chairman, Mr. Adrian White, presented on 'Delivering Export Success' at a dedicated panel discussion to launch the event.

Mr. White provided examples of Biwater's ability to finance large-scale water and wastewater infrastructure projects, highlighting success stories from across the globe - from Chile to China - whereby 50 percent of goods and services were subcontracted or purchased from SMEs.

"The key to export success for Biwater has been project finance. It is one thing to be able to design, build and operate world-class facilities, but if the works can't be funded, they never reach fruition. That is where Biwater comes in, with innovative funding methods and excellent relationships with lending institutions and export credit agencies," said Mr. White.

Mr. White went on to highlight that projects from large contractors, such as Biwater, can present small and medium enterprises (SMEs) with opportunities for export growth; SMEs can 'piggyback' on large international projects - for instance, the construction of water treatment plants, schools, hospitals, toll roads, power stations, etcetera - and use them as a launch pad to conduct business abroad. The UK Government and its UK Export Finance (UKEF) department are keen to support and encourage this approach.

Outlining the ways in which SMEs can grow their exports and ensure financial success abroad, Mr. White discussed the merits of offering project finance. He noted four profit centres in a financed project:
• A finance fee for arranging 80% debt funding
• Profit on the construction contract
• Profit from operation and maintenance (20-30 years)
• Dividends from the 20% equity funded portion

The session, 'Delivering Export Success', coincided with the UKTI's Export Week (11 - 15 November 2013), aimed at encouraging businesses to start exporting, or increase their exports.

As a result of its successful exporting activities to date, Biwater has gained recognition for its innovative approaches, and has been the recipient of the Queens Award to Industry for export achievement five times.

Panelists:
• Adrian White, Executive Chairman, Biwater
• Nigel Hastilow, Director of Enterprise, ICAEW
• Jeff Hayward, Director, Wildwood PR
• Simon Nicholson, Head of International Trade, Barclays
• Larry Elliott, Economics Editor, The Guardian