Multilateral and Bilateral Task Force

US Hydropower has been working with the White House, on Capitol Hill, and with the International Finance Community In early 2001, US Hydropower initiated an aggressive strategy to educate members of Congress and their staff about the market and project finance barriers that our U.S. companies face in foreign markets.  This effort involved work with more than 20 House offices and 5 Senate offices.  US Hydropower members supported staff efforts by writing letters, making telephone calls, and participating in briefings to educate Hill staff about our concerns.  Industry issues center around the excessive timelines and uncertain project review processes encountered in foreign markets as they continue to restructure and privatize their energy sectors.  In addition, the industry has also faces uncertainty with the approval process in obtaining multilateral or bilateral finance for hydropower projects.

In response to our efforts, subcommittees on foreign operations in the Senate and House included 2002 report language in the appropriations bill supporting a Public Private Sector Partnership on Hydropower.  The language was conferenced on December 19, 2001.  For the 2003 budget process, the subcommittees have committed to building a significant program for U.S. hydropower industry activities and programs.  This effort will include opportunities for industry spokesmen to testify on industry issues and raise the visibility of the U.S. hydropower industry in international community agenda.

Through our partnership with US AID, US Hydropower members will intensify efforts to address the need for technical assistance to the international finance community, foreign policy makers, and the private sector on project finance, tax policy, foreign investment barriers, international dispute resolution, international safety and environmental standards, currency devaluation and convertibility barriers to hydropower investment.  This momentum is exactly the type of effort that the global hydropower industry must generate to remove hydropower development barriers in foreign markets and the multilateral and international finance community.  While the World Commission on Dams has set broad development guidelines, the investment community -- in concert with private sector and foreign governments hoping to attract investment -- must work closely to create innovative finance mechanisms to bring investment to projects.  

US Hydropower expects to discuss new program plans resulting for 2002 appropriations language with US AID leadership in February, and has already begun to discuss an expanded program for hydropower in the 2003 appropriations process.