last updated: 8 January 2014
The 2014 Sector Understanding on Export Credits for Rail Infrastructure (RSU) has been agreed by the Participants to the Arrangement on Officially Supported Export Credits and is effective as of 1 January 2014, for a four-year trial period. It is now Annex V of the Arrangement on Officially Supported Export Credits.
The RSU adapts the Arrangement’s disciplines on export credits to the sector-specific financing conditions of new railway infrastructure projects. The terms and conditions set out in the RSU seek to meet the variable needs of public authorities and exporters, in both advanced and emerging economies, while helping promote the use of rail as a viable alternative to road and air transportation, in the context of energy scarcity, fuel prices and climate change.
In detail, the RSU lengthens repayment periods for rail export contracts involving an overall value of more than SDR 10 million. Terms provide for repayment up to 12 years for transactions in High-Income OECD countries, subject to conditions aimed at complementing the private sector, and of up to 14 years for transactions in all other countries. It also contains flexibilities in relation to the credit repayment profile.
The RSU is applicable to export contracts for essential rail infrastructure assets, including rail control, electrification, tracks, rolling stock, and related construction work.