EXIM Bank Approves $4.7 Billion Loan for Mozambique LNG Project Amid Controversy
The U.S. Export-Import Bank has reapproved a $4.7 billion loan for a liquefied natural gas project in Mozambique linked to violent incidents and human rights abuses, despite a tumultuous security situation. Originally approved during Trump’s presidency for $5 billion, this loan remains the largest ever sanctioned by the agency.
The U.S. Export-Import Bank recently approved a substantial $4.7 billion loan for a contentious liquefied natural gas (LNG) project in Mozambique. This decision, aligning with President Donald Trump’s efforts to support fossil fuels, signals the federal government’s commitment to energy development despite its controversial context. The loan would back the LNG facility developed by TotalEnergies SE in the Afungi region, plagued by an ongoing Islamist insurgency and linked to notable human rights violations.
Initially authorized during Trump’s administration in 2019 for $5 billion, the loan was revised to $4.7 billion, maintaining its status as the largest in the agency’s history. The financing was promoted under the premise of creating American jobs through the export of necessary equipment and construction services. However, in 2021, the project was significantly impacted when Islamist militants overtook the area, resulting in over 1,000 deaths and prompting TotalEnergies to halt operations.
As a result of the violence, financial backing from the U.S. and other institutions was put on hold, and investigations revealed serious accusations against government forces securing the TotalEnergies site. Reports indicated compelled abductions, torture, and killings attributed to these forces, leading to judicial inquiries into these events. TotalEnergies has formally denied any involvement in wrongdoing related to these accusations.
The approval of the $4.7 billion loan by the U.S. Export-Import Bank for the Mozambican LNG project underscores ongoing support for fossil fuel initiatives amid significant human rights concerns. The project, which has faced challenges due to regional violence, reflects the complexities of international investment in areas afflicted by conflict. There are rising calls for accountability regarding the actions of security forces involved in protecting these developments.
Original Source: www.eenews.net
