THE WHITE HOUSE Office of the Press Secretary ___________________________________________________________________ For Immediate Release November 17, 1994 CLINTON ADMINISTRATION SECURES CONTRACTS FOR U.S. EXPORTERS TOTALING 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 and wireless local loop equipment. Contact: Motorola Priscilla Rabb Ayres (202) 371-6958 External Affairs PHILIPPINES -- 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-to- government 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. Contact: Motorola Priscilla Rabb Ayres (202) 371-6958 External Affairs INDONESIA -- 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 A. 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 A. 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. Contact: A.N. (Norris) Crownover, Jr. President/Chief Executive Officer (062)(021) 525-0708 INDONESIA -- 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. Contract Value: $200,000 U.S. Content: $200,000 Contact: Law Environmental 1000 Abernathy Road, N.E. Atlanta, Georgia 30328 LAW/GIBB (62-21) 336-880 -- 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. Contract total $6 million U.S. Content $1 million Contact: Johnson Controls J. Bernaden (414) 274-4128