U.S. agency approves funds for S. American aid

Sept. 4, 1995
The U.S. Trade & Development Agency (Ustda) has included funding for Colombian refining and petrochemical projects among 11 grants for South American proposals. Ustda also approved funding to study the feasibility of gas and wind fueled electrical power projects in Argentina and a wind power project in Ecuador. South American environmental and transportation projects in Argentina, Peru, Uruguay, and Venezuela also received money. In all, Ustda awarded more than $4.5 million to 11 proposed

The U.S. Trade & Development Agency (Ustda) has included funding for Colombian refining and petrochemical projects among 11 grants for South American proposals.

Ustda also approved funding to study the feasibility of gas and wind fueled electrical power projects in Argentina and a wind power project in Ecuador. South American environmental and transportation projects in Argentina, Peru, Uruguay, and Venezuela also received money.

In all, Ustda awarded more than $4.5 million to 11 proposed petroleum infrastructure and industrial projects.

Ustda Director J. Joseph Grandmaison said the grants will support U.S. exports to South America. Projects tapped to receive Ustda funds could generate U.S. export revenues amounting to as much as $1.57 billion.

U.S. companies already account for more than half the foreign goods entering South America.

"With more than $10 billion of infrastructure improvement and industrial projects slated for the next 3 years, South America represents a golden opportunity for U.S. ex-porters," Grandmaison said.

The round of grants represents a strategic initiative by the Clinton administration to target South American markets. Clinton aims to create more jobs in the U.S. while fostering mutually beneficial relationships with South American nations, Grandmaison said.

Energy projects

Ustda awarded a combined $1.11 million to support proposed refining and petrochemical construction near Cartagena, Colombia. The awards included:

  • $600,000 to Colombian state petroleum company Empresa Colombiana de Petroleo (Ecopetrol) to help study the feasibility of a $170 million expansion of an Ecopetrol refinery.
  • $510,000 to Cia. Promotora de Olefinas y Aromaticos del Caribe Ltd. (Cpoac) to study the feasibility of building a $1 billion petrochemical complex.

Cpoac's petrochemical study is to include an environmental impact analysis, process technology recommendations, and design evaluation.

Ustda estimated the value of U.S. construction services and equipment exports could total as much as $100 million on Ecopetrol's Cartagena refinery expansion and as much as $600 million on the Cpoac petrochemical proposal.

In Argentina, the agency awarded $343,219 to sponsors of proposed gas and wind powered power generation projects at Comodoro Rivadavia, Chubut province. Electric utility Soc. Cooperativa Popular Ltda. de Comodor Rivadavia and Argentine power developer Grupo Ideal are to analyze markets, assess environmental effects, and set product specifications for the facilities.

Ustda estimates U.S. exports of generators, turbines, and related energy equipment to support the projects could amount to $31-33 million.

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