The Engineering Multiplier Program (EMP) is designed to generate additional exports of U.S. goods and services overall (the "multiplier effect"), since the foreign buyer is more likely to procure U.S. equipment and construction services for a project for which U.S. engineers, designers, architects and environmental analysts undertook the feasibility study, design and other pre-project work.
The EMP will finance feasibility studies, pre-construction design, engineering, architectural and environmental services undertaken prior to commencement of the implementation phase of a physical project, supporting the award of major equipment supply and construction contracts and development of technical and environmental & social information that required to facilitate EXIM’s future consideration of requests to support the implementation of foreign projects. These services must support projects that have the potential of generating subsequent U.S. export orders of at least double the amount of the original pre-export service contract(s), or $10 million, whichever is greater.
The EMP provides added advantages by including an automatic entitlement of maximum local cost support and the buyer’s right to “roll-over” medium-term EMP financing into a long-term credit if EXIM finances the U.S. export orders associated with the project. If the underlying project goes forward with U.S. goods and services, EXIM may extend a loan or guarantee for the project to the foreign buyer. The financing undertaken under the EMP can then be rolled into the subsequent financing of the project, on standard terms applicable to the nature of the project. Transactions that cannot meet the eligibility requirements of this program (because, for example, the transaction would not likely generate sufficient subsequent U.S. export orders) remain eligible for support under EXIM's standard medium-term guarantee.
The buyer must be a creditworthy entity and the underlying project must be eligible for EXIM support. Moreover, the Bank looks at the foreign buyer's ability to finance all stages of the project, whether or not the actual project is to be supported by EXIM. The buyer must be in a country eligible for EXIM financing assistance. EXIM financing for U.S. pre-project services under the engineering multiplier program is eligible for repayment terms of up to five years. Applications for support of greater than $25 million, including any local cost support, are subject to review and decision by the Bank's Board of Directors.
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