Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, with reference to UK Export Finance's support for the Mozambique LNG project, what the names of the companies are with which contracts for that project have been issued for UK goods and services; and on what date those contracts were issued.
Answered by Graham Stuart
UK Export Finance (UKEF) is aware of contracts with estimated supported eligible contracting of over US $750 million having been awarded from the Mozambique LNG project. Those contracts include the manufacture of equipment, subsea installation vessels, and provision of legal and financial advice.
Specific details of individual contracts that are eligible for UKEF support are not published due to commercial confidentiality.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what estimate he has made of the number of contracts supported by UK Export Finance with (a) UK and (b) non-UK companies for the Mozambique LNG project.
Answered by Graham Stuart
UK Export Finance (UKEF) is aware of contracts with estimated supported eligible contracting of over US $750 million having been awarded from the Mozambique LNG project. Those contracts include the manufacture of equipment, subsea installation vessels, and provision of legal and financial advice.
Specific details of individual contracts that are eligible for UKEF support are not published due to commercial confidentiality.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, with reference to UK Export Finance's support for the Mozambique LNG project, how many contracts have been issued for UK goods and services as a result of that support, on what date each of those contracts was signed; and what the total value was of each of those contracts.
Answered by Graham Stuart
UK Export Finance (UKEF) is aware of contracts with estimated supported eligible contracting of over US $750 million having been awarded from the Mozambique LNG project. Those contracts include the manufacture of equipment, subsea installation vessels, and provision of legal and financial advice.
Specific details of individual contracts that are eligible for UKEF support are not published due to commercial confidentiality.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what assessment she has made of the implications for her policy of her Department's updated guidance to UK firms operating in Nigeria that Nigeria has a democratic framework which guarantees human rights within its constitution. an independent judiciary and a strong civil society.
Answered by Ranil Jayawardena
Our guidance forms part of the package of support that we offer to all British businesses. HM Government is clear that more trade does not have to come at the expense of our values.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, whether arms sales granted an export license by the Government have been used by Saudi Arabia and their coalition partners in combat missions which have resulted in civilian casualties.
Answered by Ranil Jayawardena
The United Kingdom has a robust export controls regime. All export licence applications are assessed on a case-by-case basis against the Consolidated EU and National Arms Export Licensing Criteria (the “Consolidated Criteria”).
We have been clear that equipment manufactured in the United Kingdom is used all over the world, and we are equally clear that a licence will not be granted if to do so would be inconsistent with the Consolidated Criteria.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, pursuant to the Answer of 8 December 2020 to Question 122815 on Pipelines: East Africa, for what reason the Answer of 23 December 2020 to Question 130164 on Fossil Fuels: Export Credit Guarantees did not include reference to the East African Crude Oil Pipeline; and what other projects have UKEF been approached on that were not included in Answers to Questions 91998 and 118072.
Answered by Graham Stuart
While UK Export Finance (UKEF) has been approached by and held initial meetings with the sponsors of the East African Crude Oil Pipeline project (EACOP), it has not engaged in any substantive due diligence on the project and so considers this to be an early-stage enquiry. As such, at this early stage UKEF was not able to make any reliable assessment of whether the transaction might progress or, if so, over what timeframe.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what assessment she has made of the (a) environmental, (b) social and (c) human rights effects of the Mozambique Liquefied Natural Gas (LNG) Project on local communities in the context of the political and social situation in that region.
Answered by Graham Stuart
UK Export Finance (UKEF) undertook an environmental, social and human rights (ESHR) review of the Mozambique LNG Project in line with the Organisation for Economic Co-Operation and Development (OECD) 2016 Revised text for the Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the “OECD Common Approaches”), and the Equator Principles (2013), alongside that also conducted by the co-lenders to the transaction. The review assessed the alignment of the Project against relevant international ESHR standards, including the International Finance Corporation (IFC) Performance Standards on Environmental and Social Responsibility. ESHR impacts were considered in the context of the political and social situation at the Project location in line with the requirements of IFC Performance Standard 4 on Community Health, Safety, and Security.
These requirements aim to ensure that the safeguarding of the Project’s personnel and property is carried out in accordance with relevant human rights principles, and that these activities and processes are planned, conducted and monitored in a manner that avoids or minimises ESHR risks to affected communities. The Project was evaluated to have the potential to cause some adverse ESHR impacts, but it is considered that these can be adequately managed using the suite of controls that are proposed as part of the Project’s environmental and social management system and meet the relevant ESHR standards.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, whether she is making a new assessment as a result of recent developments in the region of the Mozambique LNG project's (a) compliance with international environmental, social and human rights standards and (b) development of an up to date project community security plan.
Answered by Graham Stuart
In line with the requirements of the Organisation for Economic Co-Operation and Development (OECD) Common Approaches (2016) and Equator Principles (2013), UK Export Finance (UKEF) will monitor the ongoing environmental, social and human rights (ESHR) performance of the Mozambique LNG Project to be satisfied that it is being constructed and operated in compliance with applicable local and international laws, and aligns with relevant international ESHR standards, including the International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability. UKEF will be supported in this performance monitoring by an independent ESHR consultant and an independent security consultant. There is also ongoing monitoring of the security threat situation and validation of the Project’s reports and management plans through the UK, US and French Embassies in Mozambique.
The Mozambique LNG Project is committed to following the UN Voluntary Principles on Security and Human Rights, which provide guidance on good international practice in terms of conducting security operations while respecting human rights. The Project has a Community Security Plan in place which is aligned with international standards. The Community Security Plan has recently been updated in light of the dynamic security situation in the region.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, how many fossil fuel projects UK Export Finance (a) is currently considering for support or (b) has been asked to consider for support in the future; and for each project (i) where it is located and (ii) what fossil fuel it relates to.
Answered by Graham Stuart
On 12 December 2020, the Prime Minister announced that the British government will no longer provide any new direct financial or promotional support for the fossil fuel energy sector overseas. This policy will be implemented as soon as possible following the conclusion of the consultation process that was also launched on 12 December.
During the consultation period and ahead of the implementation of the new policy, the government will continue to apply current policy for all in-scope activities including proposals for high carbon projects, with consideration of relevant factors including climate change.
I refer the Hon. Member for Edmonton to my responses to the Hon. Member for Birmingham, Edgbaston on 18 November 2020 (UIN: 91998) and 25 November 2020 (UIN: 118072), which listed the fossil fuel related projects that UK Export Finance is currently considering for 2021, their locations, and the type of fossil fuel involved.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, pursuant to the Answer of 18 November 2020 to Question 91998 on Fossil Fuels: Export Credit Guarantees, what status the listed projects have following the Prime Minister’s announcement of 12 December 2020 on ending direct financing for fossil fuel projects overseas.
Answered by Graham Stuart
The new policy on ending government’s support to fossil fuels overseas announced by the Prime Minister at the Climate Ambition Summit will be implemented as soon as possible following the conclusion of the consultation process that was launched on 12 December.
During the consultation period and ahead of the implementation of the new policy, the government will continue to apply current policy for all in-scope activities including proposals for high carbon projects, with consideration of relevant factors including climate change.
The projects referred to in my response to the Hon. Member for Birmingham, Edgbaston on 18 November 2020 (UIN: 91998) are still under consideration by UK Export Finance, and no decisions have been made. It is our policy not to comment on potential transactions for reasons of commercial sensitivity.